Credo Technology Group Holding Ltd (CRDO) AI Stock Analysis

Credo Technology Group Holding Ltd specializes in delivering advanced high-speed connectivity solutions tailored for optical and electrical Ethernet applications across global markets, such as the United States, Mexico, Mainland China, and Hong Kong. The company's product portfolio includes integrated circuits, active electrical cables, and SerDes chiplets based on serializer/deserializer and digital signal processor technologies. In addition to hardware products, Credo provides intellectual property solutions through SerDes IP licensing, allowing other companies to integrate its connectivity technology into their own architectures. Founded in 2008 and based in San Jose, California, the company employs 807 people.

Credo's revenue grew from $106.5M in FY2022 to $1.34B in FY2026, achieving a 5-year revenue CAGR of 86.8%. Gross margin expanded from 60.1% in FY2022 to 68.0% in FY2026. Operating margin turned positive in FY2025 at 8.7% and expanded to 33.3% in FY2026, lifting net income from -$22.2M in FY2022 to $472.3M in FY2026. Free cash flow improved from -$48.4M in FY2022 to $407.0M in FY2026, while research and development expense rose to $279.4M. In the trailing twelve months ended July 31, 2026, revenue stood at $1.59B with a profit margin of 33.8%, supported by quarterly revenue growth of 114.7% and quarterly earnings growth of 97.1%.

As of July 31, 2026, Credo held $764.3M in cash and short-term investments against total debt of $20.7M, yielding net cash of $743.5M. The company maintains a current ratio of 7.40 and a debt-to-equity ratio of 0.01 on shareholders' equity of $2.73B and total assets of $3.01B. In FY2026, operating cash flow reached $464.3M. Cash allocation included capital expenditures of $57.3M and share buybacks of $19.2M, while share count changed by 34.1% over 5 years.

At a market capitalization of $31.90B and an enterprise value of $35.70B, Credo trades at a trailing P/E of 60.2x and a forward P/E of 30.9x. These figures trade at a premium to the median of its US-listed Technology peers, which shows a trailing P/E of 28.1x and a forward P/E of 18.8x. Its EV-to-EBITDA multiple is 64.4x versus the peer median of 16.6x, and price-to-sales is 20.0x versus 2.8x. Over the past year, Credo generated a return of 24.3%, outperforming the S&P 500 (SPY) return of 16.8%.

Wall Street analysts maintain 14 Strong Buy, 5 Buy, and 1 Hold ratings on Credo, with no Sell or Strong Sell ratings. The mean price target of $279.09 sits 64.5% above the last close of $169.70. For the fiscal year ending April 30, 2027, consensus estimates project revenue of $2.50B and EPS of $6.31, representing 82.3% EPS growth. Credo has beaten EPS estimates in 3 of the last 4 quarters, with the next earnings date set for December 7, 2026.

This page is an AI-written research summary of Credo Technology Group Holding Ltd (CRDO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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