Credo Technology Group Holding Ltd Q4 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Credo Technology Group Q4 & FY2026 Earnings Summary

  • Full Year FY2026 (ended ~April 2026): Revenue $1.3B (+206% YoY vs FY2025). Non-GAAP gross margin 68.1% (+310 bps YoY). Non-GAAP net income $662M (more than 5x YoY). Non-GAAP EPS $3.46 (+$2.76 or +392% YoY). Strong operating leverage with OpEx growing much slower than revenue.
  • Q4 FY2026: Record revenue $437M (+7% QoQ vs Q3; +157% YoY vs Q4 FY2025). Q4 revenue alone exceeded total FY2025 revenue. Non-GAAP gross margin 68.3% (above guidance). Non-GAAP operating income $216.7M (vs $201.8M in Q3). Non-GAAP net income $226.7M (+9% QoQ; more than 3x YoY; 33% higher than Q4 FY2025 revenue). Non-GAAP net margin 51.9%. Operating cash flow $182.2M. Free cash flow $177.5M. Cash & equivalents $1.4B (+$141.8M QoQ). Inventory $250.8M.
  • Customer Mix: Four customers each ≥10% of Q4 revenue (largest 34%, second 27%, third 16%, fourth 10%). Expect 3-4 customers ≥10% going forward with increasing diversification across hyperscalers and NeoClouds.

Business & Strategic Highlights

  • AECs: Core growth engine; strong adoption at 100G/200G per lane. ZeroFlap AECs deliver up to 1,000x reliability vs optical modules with lower power. PCIe Gen6 AEC on track.
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Operator: Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session where we request that you please limit yourselves to 1 question only. At that time, if you have a question, you will need to press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star and then the number 1 again. I would now like to turn the conference over to Daniel O'Neil. Please go ahead, sir. Daniel J. O'Neil: Good afternoon. Thank you all for joining our fourth quarter fiscal 26 earnings call. Today, I am joined by Bill Brennan, Credo's Chief Executive Officer and Daniel Fleming, Credo's Chief Financial Officer. During this call, we will make certain forward looking statements. These forward looking statements are subject to risks and uncertainties discussed in detail in our documents filed with the SEC. These documents can be found in the Investor Relations portion of the company's website. It is now possible for the company's management to predict all risks, nor can the company assess the impact of all factors on its business. Or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward looking statement. Given these risks, uncertainties and assumptions, the forward looking events discussed during this call may not occur. And actual results could differ materially
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