Credo reports record Q4 earnings, shares dip after hours

Shares of Credo Technology Group Holding Ltd. fell in after-hours trading Monday following the release of the company's fiscal fourth-quarter earnings, despite the company reporting record results that exceeded analyst expectations. The stock recovered some of those losses by the close of the regular session, ending the day down 4.2% at $226.10.

For the quarter, the connectivity solutions provider reported revenue of $437 million, a 157% increase compared to the same period last year and above the consensus analyst estimate. Adjusted earnings per share were $1.16, also surpassing Wall Street forecasts. For the full fiscal year 2026, revenue reached $1.3 billion, an increase of 206% year-over-year. Non-GAAP net income for the year rose more than fivefold to $662 million. The company ended the quarter with $1.4 billion in cash and short-term investments.

Looking ahead, Credo provided first-quarter fiscal 2027 revenue guidance in the range of $465 million to $475 million, which is above the current analyst consensus. For the full fiscal year 2027, management expects revenue to grow more than 80% year-over-year. They anticipate roughly half of that growth will come from its optical...