"Credo has beaten EPS estimates in 7 of the last 8 quarters, with recent surprise margins ranging from +29.6% to +44.4%. Last quarter's beat was $0.17 above the $0.50 estimate, or +34%. Zacks assigns the stock a Strong Buy rank with an Earnings ESP of +13.27%, suggesting the market is pricing in another upside surprise on the $0.94 estimate."
"Bull case triggers include EPS materially above $0.94 consistent with recent pattern of large beats, gross margin at or above 65% at the top of long-term target range, Q4 FY2026 guidance indicating mid-single-digit sequential revenue growth or better, and evidence of customer diversification with multiple hyperscalers contributing meaningfully to revenue."
"Because Credo preannounced revenue, the headline number is largely known. Tonight's focus shifts to gross margin execution, EPS delivery relative to the $0.94 estimate, and forward guidance for Q2 FY2026."
Credo Technology reports fiscal Q3 2026 earnings with Wall Street expecting $0.94 EPS and preannounced revenue of $404-$408 million, representing 272% year-over-year growth. The stock has declined 21.1% year-to-date to $113.52, trading well below its 52-week high of $213.80. Analysts maintain an average price target of $208.69, suggesting significant upside. Tonight's focus centers on gross margin execution (targeting 63-65%), EPS delivery, and forward guidance. Credo has beaten EPS estimates in 7 of 8 recent quarters with surprise margins ranging from +29.6% to +44.4%. Zacks assigns a Strong Buy rank with +13.27% Earnings ESP, indicating market expectations for another upside surprise.
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