CRDO 206% Revenue Growth | Can Credo Do It Again?Credo Technology Group Holding Ltd.BATS:CRDOmoonyptoCredo Technology Group develops the high speed connectivity technology that keeps AI data centers running efficiently. Its business is built around proprietary SerDes and DSP technology, powering Ethernet, PCIe, and next-generation networking solutions up to 1.6T and beyond The company's biggest growth engine is Active Electrical Cables (AECs), which consume less power, improve signal reliability, and simplify deployment compared to traditional copper cables. These cables have become a preferred choice for connecting GPUs inside massive AI clusters. Credo is also expanding aggressively into optical networking through DSPs, transceivers, and its acquisition of DustPhotonics, giving it stronger exposure to the rapidly growing 800G and 1.6T optical market. Additional revenue comes from retimers, chiplets, IP licensing, and connectivity software With AI infrastructure spending accelerating, AECs remain the primary revenue driver today, while optics is expected to become an increasingly important contributor over the next few years. Thanks to its differentiated technology, Credo continues to generate industry leading gross margins above 68% 📊 FY26 earnings by the numbers Full Year FY26 (ended May 2, 2026) 💰 Revenue: $1.335B (+206% YoY) 📈 Non-GAAP Gross Margin: 68.1% (+310 bps YoY) 💵 Non-GAAP Net Income: $662M (more than 5x YoY) 🧮 NonGAAP EPS: $3.46 (+392% YoY) 🏦 Cash & Investments: ~$1.4B Q4 FY26 💰 Revenue: $437M (+157% YoY, +7.4% QoQ) 📈 Non-GAAP Gross Margin: 68.3% ⚙️ Non-GAAP Operating Expenses: $81.7M 💵 Non-GAAP Net Income: $226.7M 🧮 NonGAAP EPS: $1.16 (ahead of expectations) FY26 marked one of the strongest growth years in the semiconductor industry, driven by AI infrastructure deployments, exceptional operating leverage, and continued demand for Credo's connectivity solutions 🎙️ Key insights from the call Management described FY26 as a breakthrough year, highlighting record revenue growth while maintaining best in class profitability. The company believes its vertically integrated connectivity platform improves GPU utilization, lowers power consumption, and increases the reliability of large AI clusters Looking ahead, management expects AI demand to remain strong throughout FY27. Revenue is projected to continue growing during the first half before accelerating further in the second half, with total FY27 revenue expected to increase by **more than 80%**. Optical products are becoming a major growth pillar, with management expecting them to generate **over $600 million** in FY27, supported by the DustPhotonics acquisition Gross margins are expected to stay in the high 60% range despite a larger optical mix, with Q1 FY27 guidance of 67% to 69%. Management also emphasized expanding relationships with hyperscalers and AI cloud providers while continuing to innovate through products like ZeroFlap to improve network reliability Although the stock traded lower after earnings because investors focused on acquisition costs and the possibility of slower growth after an extraordinary FY26, management's long-term AI connectivity outlook remained unchanged 🔭 What to watch next -Q1 FY27 earnings: Management guided for $465M to $475M in revenue. Investors will be watching whether growth continues at the expected pace while margins remain near 68% -Optics expansion: Can optical products surpass $600M in FY27 and diversify the business beyond AECs? -AI infrastructure spending: Continued hyperscaler and AI cloud capital expenditure remains the biggest driver of future growth -Margins: Watch whether the shift toward optics affects profitability or if Credo can maintain its industry-leading margins -Competition:Rivals are investing aggressively in AI networking, making product execution and customer wins increasingly important Credo has emerged as one of the biggest beneficiaries of the AI infrastructure boom. Its leadership in AECs, expanding optical portfolio, and strong relationships with hyperscalers position the company well for continued growth. The biggest risks remain customer concentration, increasing competition, execution on its optical expansion, and the high valuation investors are willing to pay for sustained AIdriven growth