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● TRACKER Updated 12d ago · 10 sources tracked

Credo Shares Slump Despite Earnings Beat

Credo Technology Group Holding Ltd. shares slumped between 8% and 21% following its fiscal first-quarter report despite beating Wall Street expectations for revenue and earnings. The company posted fiscal 2027 first-quarter revenue of $479 million and adjusted earnings of $1.20 per share, exceeding consensus estimates of $471.77 million and $1.17 respectively. However, the sell-off was triggered by shrinking margins, rising costs, softer guidance concerns, and profit-taking after a massive prior rally, leaving shares trading around $169.

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  • ✓ Credo Technology Group reported fiscal 2027 first-quarter revenue of $479 million.
  • ✓ Adjusted earnings of $1.20 per share topped the consensus estimate of $1.17.
  • ✓ GAAP gross margin fell to 64.5% from 68.2% in the prior quarter.
  • ✓ GAAP operating income rose to $120.7 million from $60.7 million a year ago, but declined from $155.8 million in the previous quarter.
🛡️ Source Corroboration: 10 independent reporting domains (100% confidence) ⏱ Read time: ~2 min

What changed

Credo Technology Group Holding Ltd. reported its fiscal first-quarter results, triggering a sharp stock sell-off despite exceeding Wall Street revenue and earnings forecasts.

Live updates

  1. Credo Technology Shares Plunge Despite Beating Earnings Expectations

    Credo Technology Group Holding Ltd. shares slumped between 8% and 21% following its fiscal first-quarter report despite beating Wall Street expectations for revenue and earnings. The company posted fiscal 2027 first-quarter revenue of $479 million and adjusted earnings of $1.20 per share, exceeding consensus estimates of $471.77 million and $1.17 respectively. However, the sell-off was triggered by shrinking margins, rising costs, softer guidance concerns, and profit-taking after a massive prior rally, leaving shares trading around $169.

    Why it matters

    Credo had experienced a massive rally earlier in the year, leaving its stock vulnerable to profit-taking against lofty investor expectations and an extremely demanding valuation bar. Financial institutions including J.P. Morgan and BofA cut their price targets for the company following the report. The period marked the company's seventh straight quarter of triple-digit annual growth, yet profitability metrics and margin compression overshadowed the headline beats.

    What is confirmed

    • Credo Technology Group reported fiscal 2027 first-quarter revenue of $479 million.
    • Adjusted earnings of $1.20 per share topped the consensus estimate of $1.17.
    • GAAP gross margin fell to 64.5% from 68.2% in the prior quarter.
    • GAAP operating income rose to $120.7 million from $60.7 million a year ago, but declined from $155.8 million in the previous quarter.

    Still unconfirmed

    • J.P. Morgan and BofA cut their price targets amid concerns over future growth prospects.
    • Softer guidance triggered the initial premarket sell-off.

    What to watch next

    • Further analyst target adjustments and reactions to Credo's margin pressures.
    • Investor profit-taking patterns following the massive pre-earnings stock rally.
    Sources used for this update (12)
    1. Yahoo Finance — Earnings To Watch: Credo Technology Group Holding Ltd (CRDO) Q1 2027 -- GF Value Sees 64% Upside
    2. Barron's — Credo Shares Slump Despite Earnings Beat
    3. tradingview.com — Credo Technology Group Reports Q1 FY2027 Revenue $479.0M, GAAP Net Income $129.4M
    4. Zacks Investment Research — Wall Street Analysts Believe Credo Technology Group (CRDO) Could Rally 28.17%: Here's is How to Trade
    5. Seeking Alpha — Credo: Opportunity Knocks (NASDAQ:CRDO)
    6. blockonomi.com — Credo Technology (CRDO) Stock Plunges 8% Despite Beating Q1 Earnings Expectations
    7. blockonomi.com — Credo Technology (CRDO) Stock Plunges 21% Despite Earnings Beat on Weak Guidance
    8. www.aol.com — Why Is Credo Technology Stock Sinking Wednesday?
    9. www.marketscreener.com — Credo plunges 20%, despite strong results and higher guidance
    10. www.rttnews.com — Credo Technology Shares Plunge 18% Despite Strong Q1 Results
    11. finance.biggo.com — Credo Shares Plunge 20% Despite Revenue More Than Doubling as Profitability Concerns Mount
    12. www.aol.com — Why Credo Technology Sank This Week
    confidence 100%
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