Credo shares fall over 9% after quarterly results

Shares of Credo Technology Group fell more than 9% in premarket trading to their lowest level since July 30 after the company reported quarterly results.

The company reported revenue of $479 million for the quarter, a 9.6% increase from the prior quarter and a 114.7% increase from the same quarter a year earlier. GAAP gross margin rose to 64.5%. GAAP net income was $129.4 million, compared with $64 million a year earlier and $169 million in the fourth quarter of fiscal 2026.

Credo designs high-speed connectivity chips and cables used in AI data centers, cloud infrastructure and networking equipment. The company competes with firms such as Marvell Technology, Broadcom and Astera Labs and counts customers including Amazon, Microsoft and SpaceX.

On a forward GAAP basis the stock’s price-to-earnings ratio is about 45, above the technology sector median of 29. The shares have fallen from a year-to-date high of $308.30 to roughly $191–$192, a decline of nearly 40%.

Technical analysts pointed to a double-top-like pattern and noted the shares have moved below the 50-day and 100-day exponential moving averages and below the 50% Fibonacci retracement level. Some technicians identified a potential next retracement target near $171, the 61.8% level.

In a statement, Chief Executive Bill Brennan noted that “Our portfolio now spans connectivity from millimeters to kilometers, with solutions across optics and copper.”

The company expects revenue growth to continue as data center buildouts increase in the U.S. and other countries, and it referenced industry plans to raise data center spending this year to an estimated total exceeding $1 trillion.

Despite sequential revenue gains and an improved gross margin, the stock traded lower in the premarket session.