Credo Technology, a company specialising in high-speed interconnects for AI data centres, has reported its Q1 FY27 financial results. The company's revenue reached $479 million, representing a 115% increase compared to the previous year. Adjusted earnings per share (EPS) for the quarter were $1.20, and gross margins remained at 68%.
Despite these strong results, Credo Technology's stock saw a decline. Shares fell 8.65% during the regular trading session, closing at $206.63, and then dropped an additional 10.12% after hours to $185.72.
The company's forward guidance projects revenue of up to $535 million for the next quarter, indicating an ongoing ramp-up in its optical transition, partly driven by the DustPhotonics acquisition. Credo's top four hyperscaler clients currently account for 84% of its revenue, with the largest client contributing 33% and the second largest 28% as of Q1 FY27.