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Credo shares drop 36% despite strong Q4 earnings and optimistic 2027 revenue growth forecast

Company Fundamentals
29 Jul 2026
Seeking Alpha
View Source
Bullish
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Credo Technology's shares fell over 36% even after reporting a 157% revenue increase and 231% rise in adjusted EPS for fiscal Q4, showing strong cash flow and operating leverage. The company highlights the importance of its ZeroFlap AECs for AI connectivity and expansion of its optical portfolio through DustPhotonics. Management projects about 80% revenue growth by fiscal 2027, with optical products driving half of that growth. However, risks like customer concentration, pricing pressure, and product scaling challenges remain significant.

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