Credo Technology Revenue Surges 201% to $407M in Q3 FY2026

Credo Technology Group Holding Ltd, a provider of high-speed connectivity solutions, reported revenue of $407.0 million for the three months ending January 31, 2026, a 201% jump from $135.0 million in the same quarter a year earlier. Read more earnings reports.

Net income for the quarter reached $157.1 million, or $0.82 per diluted share, compared with $29.4 million, or $0.16 per diluted share, in the prior-year period. The company swung from a retained deficit of $83.2 million as of May 3, 2025, to retained earnings of $220.0 million as of January 31, 2026.

Operating income for the quarter totaled $149.6 million, up from $26.2 million a year ago. Gross profit climbed to $278.9 million from $85.9 million, reflecting a gross margin expansion as cost of goods sold rose to $128.1 million from $49.1 million.

Nine-Month Performance

For the nine months ending January 31, 2026, Credo Technology reported revenue of $898.1 million, more than triple the $266.8 million recorded in the same period a year earlier. Net income for the nine-month period came in at $303.2 million, compared with $15.6 million in the prior year.

Operating income for the nine months reached $289.2 million, a sharp reversal from $3.3 million a year earlier. The company generated $282.1 million in cash from operations for the nine months, compared with $7.3 million in the prior-year period.

Expenses and Investments

Operating expenses for the quarter totaled $129.2 million, up from $59.7 million a year earlier. Research and development expenses rose to $78.5 million from $36.3 million, while selling, general and administrative expenses increased to $50.8 million from $23.5 million.

For the nine months, operating expenses came to $321.1 million, compared with $165.4 million in the prior year. R&D spending for the period totaled $188.8 million versus $98.4 million, while SG&A expenses reached $132.3 million compared with $67.0 million.

Balance Sheet Strength

Total assets stood at $2.04 billion as of January 31, 2026, up from $809.3 million as of May 3, 2025. Cash and cash equivalents surged to $1.22 billion from $236.3 million. The increase was driven in part by $723.0 million in cash from financing activities for the nine months, suggesting a capital raise during the period.

Accounts receivable climbed to $243.2 million from $162.1 million, while inventory more than doubled to $208.0 million from $90.0 million. The company added $70.9 million in goodwill during the period, indicating an acquisition. Intangible assets of $17.6 million also appeared on the balance sheet for the first time.

Total stockholders' equity rose to $1.85 billion from $681.6 million. Common shares outstanding increased to 184.2 million from 171.2 million as of May 3, 2025.

Financial Summary