{"success":true,"data":{"pressRelease":{"id":"133115","rtpr_id":"nBw4cDfd6a","ticker":"CRDO","exchange":"NASDAQ","all_tickers":["CRDO"],"title":"Credo Technology Group Holding Ltd Reports First Quarter of Fiscal Year 2027 Financial Results","author":"Business Wire","published_at":"2026-09-01T20:05:00.459Z","article_body":"Credo Technology Group Holding Ltd Reports First Quarter of Fiscal Year 2027\nFinancial Results\n\nCredo Technology Group Holding Ltd (Credo) (Nasdaq: CRDO), an innovator in\nproviding connectivity at scale through fast, reliable, and energy-efficient\nsystem solutions, today announced financial results for the first quarter of\nfiscal year 2027, ended August 1, 2026.\n\nFirst Quarter of Fiscal Year 2027 Financial Highlights\n\n\n * Revenue of $479.0 million, grew by 9.6% quarter over quarter and 114.7% year\nover year\n\n * GAAP gross margin of 64.5% and non-GAAP gross margin of 68.0%\n\n * GAAP operating expenses of $188.4 million and non-GAAP operating expenses of\n$95.2 million\n\n * GAAP net income of $129.4 million and non-GAAP net income of $236.3 million\n\n * GAAP diluted net income per share of $0.67 and non-GAAP diluted net income per\nshare of $1.20\n\n * Ending cash and short-term investment balance of $764.3 million\n\nManagement Commentary\n\nBill Brennan, Credo’s President and Chief Executive Officer, stated,\n“During the first quarter of fiscal 2027, Credo delivered revenue of $479.0\nmillion and non-GAAP net income of $236.3 million, representing 115% and 140%\nyear-over-year growth respectively. Our portfolio now spans connectivity from\nmillimeters to kilometers, with solutions across optics and copper. As AI\ninfrastructure scales, we will continue to provide an innovative suite of\nreliable and energy-efficient connectivity solutions for the data center.”\n\nSecond Quarter of Fiscal 2027 Financial Outlook\n\n\n * Revenue is expected to be between $525 million and $535 million\n\n * GAAP gross margin is expected to be between 62.9% and 64.9%, and non-GAAP\ngross margin is expected to be between 67.0% and 69.0%\n\n * GAAP operating expenses are expected to be between $199 million and $204\nmillion, and non-GAAP operating expenses are expected to be between $100\nmillion and $105 million\n\nConference Call\n\nCredo will conduct a conference call on Tuesday, September 1, 2026, at 2:00\np.m. Pacific Time to discuss its financial results for the first quarter of\nfiscal year 2027, ended August 1, 2026. Interested parties may join the\nconference call by dialing 833-461-5787 (toll-free) or +1 585-542-9983\n(international). The conference ID for the call is 702097177. It is\nrecommended that participants dial in to the call at least 10 minutes before\nthe start of the call. A live webcast of the conference call will be available\non Credo’s Investor Relations website at http://investors.credosemi.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestors.credosemi.com&esheet=54596939&newsitemid=20260901825270&lan=en-US&anchor=http%3A%2F%2Finvestors.credosemi.com&index=1&md5=7c945bc37bbfc0a5cd9d2faab33da90a)\n. A replay of the webcast will be available via the web at\nhttp://investors.credosemi.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestors.credosemi.com&esheet=54596939&newsitemid=20260901825270&lan=en-US&anchor=http%3A%2F%2Finvestors.credosemi.com&index=2&md5=3d439ec30df56c08d95b6b7908aaaabd)\n.\n\nDiscussion of Non-GAAP Financial Measures\n\nThis press release contains references to the non-GAAP financial measures of\nnon-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses,\nnon-GAAP operating income (loss), non-GAAP operating income (loss) margin,\nnon-GAAP net income (loss) and non-GAAP diluted net income (loss) per share.\nReconciliation of these non-GAAP measures to their comparable GAAP measures is\nincluded below. This non-GAAP information should not be construed as an\nalternative to the reported results determined in accordance with GAAP. The\nnon-GAAP financial measures that Credo presents may not be comparable to\nsimilarly titled measures of other companies and other companies may not\ncalculate such measures in the same manner as we do.\n\nNon-GAAP financial measures exclude the effect of share-based compensation\nexpenses, acquisition and integration related costs, amortization of acquired\nintangible assets, asset impairment and related charges (if applicable), and\nthe related tax effect adjustment to the provision for income taxes.\n\nCredo uses a full-year non-GAAP tax rate to compute the non-GAAP tax\nprovision. This full-year non-GAAP tax rate is based on Credo’s annual GAAP\nincome, adjusted to exclude non-GAAP items, as well as the effects of\nsignificant non-recurring and period-specific tax items which vary in size and\nfrequency. Credo’s non-GAAP tax rate is determined on an annual basis and\nmay be adjusted during the year to take into account events that may\nmaterially affect the non-GAAP tax rate, such as tax law changes, significant\nchanges in Credo’s geographic mix of revenue and expenses or changes to\nCredo’s corporate structure.\n\nGAAP diluted net income (loss) per share is calculated using basic weighted\naverage shares outstanding when there is a GAAP net loss, and calculated using\ndiluted weighted average shares outstanding when there is a GAAP net income.\nNon-GAAP diluted net income (loss) per share is calculated using basic\nweighted average shares outstanding when there is a non-GAAP net loss, and\ncalculated using non-GAAP diluted weighted average shares outstanding when\nthere is a non-GAAP net income. Non-GAAP adjustment for the number of shares\nused in the diluted per share calculations excludes the impact of share-based\ncompensation expenses expected to be incurred in future periods and not yet\nrecognized in the financial statements, which would otherwise be assumed to be\nused to repurchase shares under the GAAP treasury stock method.\n\nCredo believes that the presentation of non-GAAP financial measures provides\nimportant supplemental information to management and investors regarding\nfinancial and business trends relating to Credo’s financial condition and\nresults of operations. While Credo uses non-GAAP financial measures as a tool\nto enhance its understanding of certain aspects of its financial performance,\nCredo does not consider these measures to be a substitute for, or superior to,\nfinancial measures calculated in accordance with GAAP. Consistent with this\napproach, Credo believes that disclosing non-GAAP financial measures to the\nreaders of its financial statements provides such readers with useful\nsupplemental data that, while not a substitute for GAAP financial measures,\nallows for greater transparency in the review of its financial and operational\nperformance.\n\nExternally, management believes that investors may find Credo’s non-GAAP\nfinancial measures useful in their assessment of Credo's operating performance\nand the valuation of Credo. Internally, Credo's non-GAAP financial measures\nare used in the following areas:\n\n\n * Management’s evaluation of Credo’s operating performance;\n\n * Management’s establishment of internal operating budgets; and\n\n * Management’s performance comparisons with internal forecasts and targeted\nbusiness models.\n\nNon-GAAP financial measures have limitations in that they do not reflect all\nof the costs associated with the operations of Credo’s business as\ndetermined in accordance with GAAP. As a result, you should not consider these\nmeasures in isolation or as a substitute for analysis of Credo’s results as\nreported under GAAP. The exclusion of the above items from our GAAP financial\nmetrics does not necessarily mean that these costs are unusual or infrequent.\n\nForward-Looking Statements under the Private Securities Litigation Reform Act\nof 1995\n\nThis press release contains forward-looking statements within the meaning of\nthe federal securities laws. All statements other than statements of\nhistorical fact could be deemed forward-looking statements, including, but not\nlimited to, any statements regarding: launches of new or expansion of existing\nproducts or services; technology developments and innovation; our plans,\nstrategies or objectives with respect to future operations; financial outlook;\nfuture financial results; expectations regarding the markets and industries in\nwhich Credo conducts business; and assumptions underlying any of the\nforegoing. Words such as “anticipates,” “expects,” “intends,”\n“plans,” “projects,” “believes,” “seeks,” “estimates,”\n“can,” “may,” “will,” “would,” “outlook,” “forecast,”\n“targets” and similar expressions, or their negatives, may identify such\nforward-looking statements. These statements are not guarantees of results and\nshould not be considered as an indication of future activity or future\nperformance. Forward-looking statements are predictions, projections and other\nstatements about future events that are based on current expectations and\nassumptions and, as a result, are subject to risks and uncertainties that may\ncause actual events or results to differ materially from those described in\nthis press release. Readers are encouraged to review risk factors and all\nother disclosures appearing in Credo’s Annual Report on Form 10-K as filed\nwith the Securities and Exchange Commission (SEC) on June 15, 2026, as well as\nCredo’s other filings with the SEC, for further information on risks and\nuncertainties that could affect Credo’s business, financial condition and\nresults of operations. Copies of these filings are available from the SEC,\nCredo’s website or Credo’s investor relations department. Forward-looking\nstatements speak only as of the date they are made. Credo assumes no\nobligation to update or revise any forward-looking statements as a result of\nnew information, future events or otherwise, except as required by law.\nReaders are cautioned not to place undue reliance on these forward-looking\nstatements that speak only as of the date herein.\n\nAbout Credo\n\nCredo’s mission is to transform connectivity at scale through fast, reliable\nand energy-efficient system solutions. Our high-speed copper and optical\ninterconnect products deliver industry-leading power and performance from chip\nto cluster to meet the ever-expanding data infrastructure demands of AI.\n\nOur vertically integrated connectivity portfolio is comprised of our flagship\npurple ZeroFlap (ZF) Active Electrical Cables (AECs) and ZF optical\ntransceivers; optical components including silicon photonics-based photonic\nintegrated circuits (SiPho PICs) and DSPs; OmniConnect AI memory and\nchip-to-chip interconnect; and retimers for Ethernet and PCIe—supported by\nour PILOT diagnostic and analytics software platform. Credo innovations enable\nour customers to connect the systems that connect the world.\n\nFor more information, please visit https://www.credosemi.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.credosemi.com&esheet=54596939&newsitemid=20260901825270&lan=en-US&anchor=https%3A%2F%2Fwww.credosemi.com&index=3&md5=3df22b83b7460e7d32ebe98288e537ed)\n.\n\nCredo, the Credo logo and the color purple when associated with AECs are\nregistered trademarks of Credo Technology Group Limited in the United States\nand other jurisdictions. All other trademarks referenced herein are the\nproperty of their respective owners.\n                                                                                                                                           \n Credo Technology Group Holding Ltd                                                                                                        \n Condensed Consolidated Statements of Operations (Unaudited)                                                                               \n (In thousands, except per share amounts)                                                                                                  \n                                                                                                                                           \n                                                                      Three Months Ended                                                   \n                                                                      August 1,                May 2,                 August 2,            \n                                                                      \n2026                    \n2026                  \n2025                \n Revenue                                                              $     479,003            $    437,003           $     223,074        \n Cost of revenue                                                            169,923                 138,936                 72,706         \n Gross profit                                                               309,080                 298,067                 150,368        \n Operating expenses:                                                                                                                       \n Research and development                                                   114,524                 90,534                  52,448         \n Selling, general and administrative                                        73,856                  51,688                  37,178         \n Total operating expenses                                                   188,380                 142,222                 89,626         \n Operating income                                                           120,700                 155,845                 60,742         \n Other income, net                                                          8,140                   12,136                  3,946          \n Income before income taxes                                                 128,840                 167,981                 64,688         \n Provision (benefit) for income taxes                                       (585     )              (1,121   )              1,289          \n Net income                                                           $     129,425            $    169,102           $     63,399         \n Net income per share:                                                                                                                     \n Basic                                                                $     0.70               $    0.92              $     0.37           \n Diluted                                                              $     0.67               $    0.88              $     0.34           \n Weighted-average shares used in computing net income per share:                                                                           \n Basic                                                                      186,007                 184,683                 171,927        \n Diluted                                                                    194,378                 192,681                 184,577        \n\n Credo Technology Group Holding Ltd                                                                     \n Condensed Consolidated Balance Sheets (Unaudited)                                                      \n (In thousands)                                                                                         \n                                                                                                        \n                                                    August 1, 2026               May 2, 2026            \n Assets                                                                                                 \n Current assets:                                                                                        \n Cash and cash equivalents                          $      466,869               $     1,164,952        \n Short-term investments                                    297,389                     278,334          \n Accounts receivable                                       288,798                     233,377          \n Inventories                                               313,051                     250,831          \n Other current assets                                      100,186                     73,576           \n Total current assets                                      1,466,293                   2,001,070        \n Property and equipment, net                               114,462                     101,605          \n Right-of-use assets                                       25,061                      24,640           \n Goodwill                                                  986,447                     92,798           \n Intangible assets, net                                    378,817                     29,262           \n Other non-current assets                                  41,647                      46,244           \n Total assets                                       $      3,012,727             $     2,295,619        \n Liabilities and Shareholders' Equity                                                                   \n Current liabilities:                                                                                   \n Accounts payable                                   $      101,822               $     107,345          \n Accrued compensation and benefits                         20,731                      21,626           \n Other current liabilities                                 75,612                      68,120           \n Total current liabilities                                 198,165                     197,091          \n Non-current operating lease liabilities                   20,737                      20,617           \n Deferred tax liabilities                                  53,659                      5,754            \n Other non-current liabilities                             11,676                      8,545            \n Total liabilities                                         284,237                     232,007          \n Shareholders' equity:                                                                                  \n Ordinary shares                                           9                           9                \n Additional paid in capital                                2,210,077                   1,672,060        \n Accumulated other comprehensive income (loss)             (138       )                2,426            \n Retained earnings                                         518,542                     389,117          \n Total shareholders' equity                                2,728,490                   2,063,612        \n Total liabilities and shareholders' equity         $      3,012,727             $     2,295,619        \n                                                                                                        \n\n Credo Technology Group Holding Ltd                                                                                   \n Reconciliations from GAAP to Non-GAAP (Unaudited)                                                                    \n (In thousands, except percentages and per share amounts)                                                             \n                                                                                                                      \n                                                 Three Months Ended                                                   \n                                                 August 1,                May 2,                 August 2,            \n                                                 \n2026                    \n2026                  \n2025                \n GAAP gross profit                               $     309,080            $    298,067           $     150,368        \n Reconciling item:                                                                                                    \n Share-based compensation                              5,715                   354                     356            \n Amortization of acquired intangible assets            11,000                  —                       —              \n Total reconciling item:                               16,715                  354                     356            \n Non-GAAP gross profit (A)                       $     325,795            $    298,421           $     150,724        \n                                                                                                                      \n GAAP gross margin                                     64.5     %              68.2     %              67.4     %     \n Non-GAAP gross margin                                 68.0     %              68.3     %              67.6     %     \n                                                                                                                      \n Total GAAP operating expenses                   $     188,380            $    142,222           $     89,626         \n Reconciling item:                                                                                                    \n Share-based compensation                              (82,264  )              (49,344  )              (35,099  )     \n Acquisition and integration related costs             (10,362  )              (9,279   )              —              \n Amortization of acquired intangible assets            (600     )              (400     )              —              \n Impairment charges                                    —                       (1,500   )              —              \n Total reconciling item:                               (93,226  )              (60,523  )              (35,099  )     \n Total Non-GAAP operating expenses (B)           $     95,154             $    81,699            $     54,527         \n                                                                                                                      \n GAAP operating income                           $     120,700            $    155,845           $     60,742         \n Non-GAAP operating income (A-B)                 $     230,641            $    216,722           $     96,197         \n                                                                                                                      \n GAAP operating income margin                          25.2     %              35.7     %              27.2     %     \n Non-GAAP operating income margin                      48.2     %              49.6     %              43.1     %     \n                                                                                                                      \n GAAP net income                                 $     129,425            $    169,102           $     63,399         \n Reconciling items:                                                                                                   \n Share-based compensation                              87,979                  49,698                  35,455         \n Acquisition and integration related costs             10,362                  9,279                   —              \n Amortization of acquired intangible assets            11,600                  400                     —              \n Impairment charges                                    —                       1,500                   —              \n Pre-tax total reconciling item                        109,941                 60,877                  35,455         \n Other income tax effects and adjustments              (3,104   )              (3,299   )              (573     )     \n Non-GAAP net income                             $     236,262            $    226,680           $     98,281         \n                                                                                                                      \n GAAP net income margin                                27.0     %              38.7     %              28.4     %     \n Non-GAAP net income margin                            49.3     %              51.9     %              44.1     %     \n                                                                                                                      \n GAAP weighted-average shares - basic                  186,007                 184,683                 171,927        \n GAAP weighted-average shares - diluted                194,378                 192,681                 184,577        \n Non-GAAP adjustment                                   3,126                   3,255                   4,288          \n Non-GAAP weighted-average shares - diluted            197,505                 195,936                 188,866        \n                                                                                                                      \n GAAP diluted net income per share               $     0.67               $    0.88              $     0.34           \n Non-GAAP diluted net income per share           $     1.20               $    1.16              $     0.52           \n                                                                                                                      \n\n Credo Technology Group Holding Ltd                                                          \n Reconciliation of GAAP Forward-Looking Estimates to Non-GAAP Forward-Looking                \n Estimates                                                                                   \n (In millions, except percentages)                                                           \n                                                                                             \n                                                 Outlook for Three Months                    \n                                                 \nEnding October 31, 2026                    \n                                                 Low                      High               \n                                                                                             \n GAAP gross margin                                     62.9   %                 64.9   %     \n Reconciling item:                                                                           \n Share-based compensation                              1.3    %                 1.3    %     \n Amortization of acquired intangible assets            2.8    %                 2.8    %     \n Total reconciling item:                               4.1    %                 4.1    %     \n Non-GAAP gross margin                                 67.0   %                 69.0   %     \n                                                                                             \n                                                                                             \n Total GAAP operating expenses                   $     199.0              $     204.0        \n Reconciling item:                                                                           \n Share-based compensation                              97.0                     97.0         \n Acquisition and integration related costs             2.0                      2.0          \n Total reconciling item:                               99.0                     99.0         \n Total Non-GAAP operating expenses               $     100.0              $     105.0        \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260901825270/en/\n(https://www.businesswire.com/news/home/20260901825270/en/)\n\nInvestor Contact: \n\nDan O’Neil\n\nIR@credosemi.com (mailto:IR@credosemi.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw4cDfd6a","title":"Credo Technology Group Holding Ltd Reports First Quarter of Fiscal Year 2027 Financial Results","author":"Business Wire","ticker":"CRDO","created":"2026-09-01T20:05:00.459Z","tickers":["CRDO"],"exchange":"NASDAQ","article_body":"Credo Technology Group Holding Ltd Reports First Quarter of Fiscal Year 2027\nFinancial Results\n\nCredo Technology Group Holding Ltd (Credo) (Nasdaq: CRDO), an innovator in\nproviding connectivity at scale through fast, reliable, and energy-efficient\nsystem solutions, today announced financial results for the first quarter of\nfiscal year 2027, ended August 1, 2026.\n\nFirst Quarter of Fiscal Year 2027 Financial Highlights\n\n\n * Revenue of $479.0 million, grew by 9.6% quarter over quarter and 114.7% year\nover year\n\n * GAAP gross margin of 64.5% and non-GAAP gross margin of 68.0%\n\n * GAAP operating expenses of $188.4 million and non-GAAP operating expenses of\n$95.2 million\n\n * GAAP net income of $129.4 million and non-GAAP net income of $236.3 million\n\n * GAAP diluted net income per share of $0.67 and non-GAAP diluted net income per\nshare of $1.20\n\n * Ending cash and short-term investment balance of $764.3 million\n\nManagement Commentary\n\nBill Brennan, Credo’s President and Chief Executive Officer, stated,\n“During the first quarter of fiscal 2027, Credo delivered revenue of $479.0\nmillion and non-GAAP net income of $236.3 million, representing 115% and 140%\nyear-over-year growth respectively. Our portfolio now spans connectivity from\nmillimeters to kilometers, with solutions across optics and copper. As AI\ninfrastructure scales, we will continue to provide an innovative suite of\nreliable and energy-efficient connectivity solutions for the data center.”\n\nSecond Quarter of Fiscal 2027 Financial Outlook\n\n\n * Revenue is expected to be between $525 million and $535 million\n\n * GAAP gross margin is expected to be between 62.9% and 64.9%, and non-GAAP\ngross margin is expected to be between 67.0% and 69.0%\n\n * GAAP operating expenses are expected to be between $199 million and $204\nmillion, and non-GAAP operating expenses are expected to be between $100\nmillion and $105 million\n\nConference Call\n\nCredo will conduct a conference call on Tuesday, September 1, 2026, at 2:00\np.m. Pacific Time to discuss its financial results for the first quarter of\nfiscal year 2027, ended August 1, 2026. Interested parties may join the\nconference call by dialing 833-461-5787 (toll-free) or +1 585-542-9983\n(international). The conference ID for the call is 702097177. It is\nrecommended that participants dial in to the call at least 10 minutes before\nthe start of the call. A live webcast of the conference call will be available\non Credo’s Investor Relations website at http://investors.credosemi.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestors.credosemi.com&esheet=54596939&newsitemid=20260901825270&lan=en-US&anchor=http%3A%2F%2Finvestors.credosemi.com&index=1&md5=7c945bc37bbfc0a5cd9d2faab33da90a)\n. A replay of the webcast will be available via the web at\nhttp://investors.credosemi.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Finvestors.credosemi.com&esheet=54596939&newsitemid=20260901825270&lan=en-US&anchor=http%3A%2F%2Finvestors.credosemi.com&index=2&md5=3d439ec30df56c08d95b6b7908aaaabd)\n.\n\nDiscussion of Non-GAAP Financial Measures\n\nThis press release contains references to the non-GAAP financial measures of\nnon-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses,\nnon-GAAP operating income (loss), non-GAAP operating income (loss) margin,\nnon-GAAP net income (loss) and non-GAAP diluted net income (loss) per share.\nReconciliation of these non-GAAP measures to their comparable GAAP measures is\nincluded below. This non-GAAP information should not be construed as an\nalternative to the reported results determined in accordance with GAAP. The\nnon-GAAP financial measures that Credo presents may not be comparable to\nsimilarly titled measures of other companies and other companies may not\ncalculate such measures in the same manner as we do.\n\nNon-GAAP financial measures exclude the effect of share-based compensation\nexpenses, acquisition and integration related costs, amortization of acquired\nintangible assets, asset impairment and related charges (if applicable), and\nthe related tax effect adjustment to the provision for income taxes.\n\nCredo uses a full-year non-GAAP tax rate to compute the non-GAAP tax\nprovision. This full-year non-GAAP tax rate is based on Credo’s annual GAAP\nincome, adjusted to exclude non-GAAP items, as well as the effects of\nsignificant non-recurring and period-specific tax items which vary in size and\nfrequency. Credo’s non-GAAP tax rate is determined on an annual basis and\nmay be adjusted during the year to take into account events that may\nmaterially affect the non-GAAP tax rate, such as tax law changes, significant\nchanges in Credo’s geographic mix of revenue and expenses or changes to\nCredo’s corporate structure.\n\nGAAP diluted net income (loss) per share is calculated using basic weighted\naverage shares outstanding when there is a GAAP net loss, and calculated using\ndiluted weighted average shares outstanding when there is a GAAP net income.\nNon-GAAP diluted net income (loss) per share is calculated using basic\nweighted average shares outstanding when there is a non-GAAP net loss, and\ncalculated using non-GAAP diluted weighted average shares outstanding when\nthere is a non-GAAP net income. Non-GAAP adjustment for the number of shares\nused in the diluted per share calculations excludes the impact of share-based\ncompensation expenses expected to be incurred in future periods and not yet\nrecognized in the financial statements, which would otherwise be assumed to be\nused to repurchase shares under the GAAP treasury stock method.\n\nCredo believes that the presentation of non-GAAP financial measures provides\nimportant supplemental information to management and investors regarding\nfinancial and business trends relating to Credo’s financial condition and\nresults of operations. While Credo uses non-GAAP financial measures as a tool\nto enhance its understanding of certain aspects of its financial performance,\nCredo does not consider these measures to be a substitute for, or superior to,\nfinancial measures calculated in accordance with GAAP. Consistent with this\napproach, Credo believes that disclosing non-GAAP financial measures to the\nreaders of its financial statements provides such readers with useful\nsupplemental data that, while not a substitute for GAAP financial measures,\nallows for greater transparency in the review of its financial and operational\nperformance.\n\nExternally, management believes that investors may find Credo’s non-GAAP\nfinancial measures useful in their assessment of Credo's operating performance\nand the valuation of Credo. Internally, Credo's non-GAAP financial measures\nare used in the following areas:\n\n\n * Management’s evaluation of Credo’s operating performance;\n\n * Management’s establishment of internal operating budgets; and\n\n * Management’s performance comparisons with internal forecasts and targeted\nbusiness models.\n\nNon-GAAP financial measures have limitations in that they do not reflect all\nof the costs associated with the operations of Credo’s business as\ndetermined in accordance with GAAP. As a result, you should not consider these\nmeasures in isolation or as a substitute for analysis of Credo’s results as\nreported under GAAP. The exclusion of the above items from our GAAP financial\nmetrics does not necessarily mean that these costs are unusual or infrequent.\n\nForward-Looking Statements under the Private Securities Litigation Reform Act\nof 1995\n\nThis press release contains forward-looking statements within the meaning of\nthe federal securities laws. All statements other than statements of\nhistorical fact could be deemed forward-looking statements, including, but not\nlimited to, any statements regarding: launches of new or expansion of existing\nproducts or services; technology developments and innovation; our plans,\nstrategies or objectives with respect to future operations; financial outlook;\nfuture financial results; expectations regarding the markets and industries in\nwhich Credo conducts business; and assumptions underlying any of the\nforegoing. Words such as “anticipates,” “expects,” “intends,”\n“plans,” “projects,” “believes,” “seeks,” “estimates,”\n“can,” “may,” “will,” “would,” “outlook,” “forecast,”\n“targets” and similar expressions, or their negatives, may identify such\nforward-looking statements. These statements are not guarantees of results and\nshould not be considered as an indication of future activity or future\nperformance. Forward-looking statements are predictions, projections and other\nstatements about future events that are based on current expectations and\nassumptions and, as a result, are subject to risks and uncertainties that may\ncause actual events or results to differ materially from those described in\nthis press release. Readers are encouraged to review risk factors and all\nother disclosures appearing in Credo’s Annual Report on Form 10-K as filed\nwith the Securities and Exchange Commission (SEC) on June 15, 2026, as well as\nCredo’s other filings with the SEC, for further information on risks and\nuncertainties that could affect Credo’s business, financial condition and\nresults of operations. Copies of these filings are available from the SEC,\nCredo’s website or Credo’s investor relations department. Forward-looking\nstatements speak only as of the date they are made. Credo assumes no\nobligation to update or revise any forward-looking statements as a result of\nnew information, future events or otherwise, except as required by law.\nReaders are cautioned not to place undue reliance on these forward-looking\nstatements that speak only as of the date herein.\n\nAbout Credo\n\nCredo’s mission is to transform connectivity at scale through fast, reliable\nand energy-efficient system solutions. Our high-speed copper and optical\ninterconnect products deliver industry-leading power and performance from chip\nto cluster to meet the ever-expanding data infrastructure demands of AI.\n\nOur vertically integrated connectivity portfolio is comprised of our flagship\npurple ZeroFlap (ZF) Active Electrical Cables (AECs) and ZF optical\ntransceivers; optical components including silicon photonics-based photonic\nintegrated circuits (SiPho PICs) and DSPs; OmniConnect AI memory and\nchip-to-chip interconnect; and retimers for Ethernet and PCIe—supported by\nour PILOT diagnostic and analytics software platform. Credo innovations enable\nour customers to connect the systems that connect the world.\n\nFor more information, please visit https://www.credosemi.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.credosemi.com&esheet=54596939&newsitemid=20260901825270&lan=en-US&anchor=https%3A%2F%2Fwww.credosemi.com&index=3&md5=3df22b83b7460e7d32ebe98288e537ed)\n.\n\nCredo, the Credo logo and the color purple when associated with AECs are\nregistered trademarks of Credo Technology Group Limited in the United States\nand other jurisdictions. All other trademarks referenced herein are the\nproperty of their respective owners.\n                                                                                                                                           \n Credo Technology Group Holding Ltd                                                                                                        \n Condensed Consolidated Statements of Operations (Unaudited)                                                                               \n (In thousands, except per share amounts)                                                                                                  \n                                                                                                                                           \n                                                                      Three Months Ended                                                   \n                                                                      August 1,                May 2,                 August 2,            \n                                                                      \n2026                    \n2026                  \n2025                \n Revenue                                                              $     479,003            $    437,003           $     223,074        \n Cost of revenue                                                            169,923                 138,936                 72,706         \n Gross profit                                                               309,080                 298,067                 150,368        \n Operating expenses:                                                                                                                       \n Research and development                                                   114,524                 90,534                  52,448         \n Selling, general and administrative                                        73,856                  51,688                  37,178         \n Total operating expenses                                                   188,380                 142,222                 89,626         \n Operating income                                                           120,700                 155,845                 60,742         \n Other income, net                                                          8,140                   12,136                  3,946          \n Income before income taxes                                                 128,840                 167,981                 64,688         \n Provision (benefit) for income taxes                                       (585     )              (1,121   )              1,289          \n Net income                                                           $     129,425            $    169,102           $     63,399         \n Net income per share:                                                                                                                     \n Basic                                                                $     0.70               $    0.92              $     0.37           \n Diluted                                                              $     0.67               $    0.88              $     0.34           \n Weighted-average shares used in computing net income per share:                                                                           \n Basic                                                                      186,007                 184,683                 171,927        \n Diluted                                                                    194,378                 192,681                 184,577        \n\n Credo Technology Group Holding Ltd                                                                     \n Condensed Consolidated Balance Sheets (Unaudited)                                                      \n (In thousands)                                                                                         \n                                                                                                        \n                                                    August 1, 2026               May 2, 2026            \n Assets                                                                                                 \n Current assets:                                                                                        \n Cash and cash equivalents                          $      466,869               $     1,164,952        \n Short-term investments                                    297,389                     278,334          \n Accounts receivable                                       288,798                     233,377          \n Inventories                                               313,051                     250,831          \n Other current assets                                      100,186                     73,576           \n Total current assets                                      1,466,293                   2,001,070        \n Property and equipment, net                               114,462                     101,605          \n Right-of-use assets                                       25,061                      24,640           \n Goodwill                                                  986,447                     92,798           \n Intangible assets, net                                    378,817                     29,262           \n Other non-current assets                                  41,647                      46,244           \n Total assets                                       $      3,012,727             $     2,295,619        \n Liabilities and Shareholders' Equity                                                                   \n Current liabilities:                                                                                   \n Accounts payable                                   $      101,822               $     107,345          \n Accrued compensation and benefits                         20,731                      21,626           \n Other current liabilities                                 75,612                      68,120           \n Total current liabilities                                 198,165                     197,091          \n Non-current operating lease liabilities                   20,737                      20,617           \n Deferred tax liabilities                                  53,659                      5,754            \n Other non-current liabilities                             11,676                      8,545            \n Total liabilities                                         284,237                     232,007          \n Shareholders' equity:                                                                                  \n Ordinary shares                                           9                           9                \n Additional paid in capital                                2,210,077                   1,672,060        \n Accumulated other comprehensive income (loss)             (138       )                2,426            \n Retained earnings                                         518,542                     389,117          \n Total shareholders' equity                                2,728,490                   2,063,612        \n Total liabilities and shareholders' equity         $      3,012,727             $     2,295,619        \n                                                                                                        \n\n Credo Technology Group Holding Ltd                                                                                   \n Reconciliations from GAAP to Non-GAAP (Unaudited)                                                                    \n (In thousands, except percentages and per share amounts)                                                             \n                                                                                                                      \n                                                 Three Months Ended                                                   \n                                                 August 1,                May 2,                 August 2,            \n                                                 \n2026                    \n2026                  \n2025                \n GAAP gross profit                               $     309,080            $    298,067           $     150,368        \n Reconciling item:                                                                                                    \n Share-based compensation                              5,715                   354                     356            \n Amortization of acquired intangible assets            11,000                  —                       —              \n Total reconciling item:                               16,715                  354                     356            \n Non-GAAP gross profit (A)                       $     325,795            $    298,421           $     150,724        \n                                                                                                                      \n GAAP gross margin                                     64.5     %              68.2     %              67.4     %     \n Non-GAAP gross margin                                 68.0     %              68.3     %              67.6     %     \n                                                                                                                      \n Total GAAP operating expenses                   $     188,380            $    142,222           $     89,626         \n Reconciling item:                                                                                                    \n Share-based compensation                              (82,264  )              (49,344  )              (35,099  )     \n Acquisition and integration related costs             (10,362  )              (9,279   )              —              \n Amortization of acquired intangible assets            (600     )              (400     )              —              \n Impairment charges                                    —                       (1,500   )              —              \n Total reconciling item:                               (93,226  )              (60,523  )              (35,099  )     \n Total Non-GAAP operating expenses (B)           $     95,154             $    81,699            $     54,527         \n                                                                                                                      \n GAAP operating income                           $     120,700            $    155,845           $     60,742         \n Non-GAAP operating income (A-B)                 $     230,641            $    216,722           $     96,197         \n                                                                                                                      \n GAAP operating income margin                          25.2     %              35.7     %              27.2     %     \n Non-GAAP operating income margin                      48.2     %              49.6     %              43.1     %     \n                                                                                                                      \n GAAP net income                                 $     129,425            $    169,102           $     63,399         \n Reconciling items:                                                                                                   \n Share-based compensation                              87,979                  49,698                  35,455         \n Acquisition and integration related costs             10,362                  9,279                   —              \n Amortization of acquired intangible assets            11,600                  400                     —              \n Impairment charges                                    —                       1,500                   —              \n Pre-tax total reconciling item                        109,941                 60,877                  35,455         \n Other income tax effects and adjustments              (3,104   )              (3,299   )              (573     )     \n Non-GAAP net income                             $     236,262            $    226,680           $     98,281         \n                                                                                                                      \n GAAP net income margin                                27.0     %              38.7     %              28.4     %     \n Non-GAAP net income margin                            49.3     %              51.9     %              44.1     %     \n                                                                                                                      \n GAAP weighted-average shares - basic                  186,007                 184,683                 171,927        \n GAAP weighted-average shares - diluted                194,378                 192,681                 184,577        \n Non-GAAP adjustment                                   3,126                   3,255                   4,288          \n Non-GAAP weighted-average shares - diluted            197,505                 195,936                 188,866        \n                                                                                                                      \n GAAP diluted net income per share               $     0.67               $    0.88              $     0.34           \n Non-GAAP diluted net income per share           $     1.20               $    1.16              $     0.52           \n                                                                                                                      \n\n Credo Technology Group Holding Ltd                                                          \n Reconciliation of GAAP Forward-Looking Estimates to Non-GAAP Forward-Looking                \n Estimates                                                                                   \n (In millions, except percentages)                                                           \n                                                                                             \n                                                 Outlook for Three Months                    \n                                                 \nEnding October 31, 2026                    \n                                                 Low                      High               \n                                                                                             \n GAAP gross margin                                     62.9   %                 64.9   %     \n Reconciling item:                                                                           \n Share-based compensation                              1.3    %                 1.3    %     \n Amortization of acquired intangible assets            2.8    %                 2.8    %     \n Total reconciling item:                               4.1    %                 4.1    %     \n Non-GAAP gross margin                                 67.0   %                 69.0   %     \n                                                                                             \n                                                                                             \n Total GAAP operating expenses                   $     199.0              $     204.0        \n Reconciling item:                                                                           \n Share-based compensation                              97.0                     97.0         \n Acquisition and integration related costs             2.0                      2.0          \n Total reconciling item:                               99.0                     99.0         \n Total Non-GAAP operating expenses               $     100.0              $     105.0        \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260901825270/en/\n(https://www.businesswire.com/news/home/20260901825270/en/)\n\nInvestor Contact: \n\nDan O’Neil\n\nIR@credosemi.com (mailto:IR@credosemi.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-09-01T20:05:00.820518899Z","server_sent_at_ms":1788293100820},"received_at":"2026-09-01T20:05:00.932Z","source_url":"https://www.businesswire.com/news/home/20260901825270/en/"},"analysis":{"id":"122007","press_release_id":"133115","analysis_json":{"industry":{"label":"Semiconductors & Semiconductor Equipment","sector":"Information Technology"},"redFlags":[],"eventType":"earnings","narrative":"Credo delivered Q1 fiscal 2027 revenue of $479.0 million, surging 114.7% year-over-year and 9.6% sequentially, driven by robust demand for AI connectivity solutions.\n\nNon-GAAP diluted EPS came in at $1.20 on non-GAAP net income of $236.3 million, while management guided for Q2 revenue of $525 million to $535 million.\n\nCEO Bill Brennan highlighted the company's expanded portfolio across optics and copper, positioning Credo to support the scaling of AI infrastructure with energy-efficient products.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Triple-digit revenue growth powered by AI tailwinds with strong forward guidance."},"keyFigures":{"eps":1.2,"revenue":"$479.0 million","guidance":"Q2 revenue $525 million - $535 million; GAAP GM 62.9%-64.9%, Non-GAAP GM 67.0%-69.0%","revenueYoy":"114.7%","customDimensions":{"gaap_eps":0.67,"cash_balance":"$764.3 million","non_gaap_net_income":"$236.3 million","non_gaap_gross_margin":"68.0%"}},"quotedText":"As AI infrastructure scales, we will continue to 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