Revenue

Q1 2026

$155 million to $165 million "

$185 million to $195 million " "

raised

Non‑GAAP Gross Margin

Q1 2026

63% to 65% "

64% to 66% "

raised

Non‑GAAP Operating Expenses

Q1 2026

$50 million to $52 million "

$54 million to $56 million "

raised

Diluted Weighted Average Share Count

Q1 2026

Approximately 188 million shares "

Approximately 188 million shares "

no change

Revenue Growth

FY 2026

50% "

no current guidance

no current guidance

Non‑GAAP Operating Expenses Growth

FY 2026

Expected to grow at half the rate of revenue growth "

no current guidance

no current guidance

Revenue

FY 2026

no prior guidance

Expected to exceed $800 million "

no prior guidance

Non‑GAAP Operating Expenses

FY 2026

no prior guidance

Expected to grow at less than half the rate of revenue "

no prior guidance

Non‑GAAP Net Margin

FY 2026

no prior guidance

Expected to approach 40% "

no prior guidance

Customer Concentration and Diversification

Q1–Q3 discussions detailed heavy revenue dependence on one or few customers (e.g. 86% from the largest customer in Q3 " " " ) with ongoing efforts to diversify via new hyperscale engagements and additional customer segments (Q1 " " and Q2 " " " ).

In Q4 the largest customer’s share dropped to 61% with clear plans to add new hyperscale customers and further diversify the revenue base (e.g. expectation of 3–4 customers above 10% in upcoming quarters " " " ).

Positive move toward a more balanced customer mix reducing concentration risk as new hyperscale and emerging customers are added.

Advanced Connectivity and DSP Innovations

Across Q1–Q3, Credo built its narrative around AEC technology and DSP innovations—with early design wins, record optical DSP shipments, tape-outs for 200‑gig designs and demonstrations (Q1 " " " ; Q2 " " ; Q3 " " ).

Q4 shows further momentum with enhanced AEC reliability (record revenue figures, proven reliability in high-speed interconnects " " ), a breakthrough 800‑gig transceiver win and advanced 200‑gig DSP demos signaling technology leadership (incorporating AI deployments " " " " ).

Consistent innovation and technology leadership; advancements indicate continued product evolution and improved performance in high-speed, low‑power connectivity solutions.

Market Expansion via AEC, Optical DSP, and PCIe Opportunities

Q1–Q3 earnings calls provided updates on expanding market opportunities using AEC, optical DSP, and early PCIe initiatives — from early design wins, prototype demos, and new product sampling in PCIe (Q1 " " " ; Q2 " " " " ; Q3 " " " " ).

Q4 highlights a strong, optimistic roadmap with detailed PCIe Gen six/Gen seven positioning, robust design wins and clearer plans to capture scale‑up networks along with continued AEC and DSP growth (e.g. PCIe opportunities at GTC, anticipated revenue accelerations " " " " " " ).

Accelerating market expansion with multi‑product growth as Credo scales its innovations across connectivity domains, targeting both scale‑out and emerging scale‑up networks.

Supply Chain Challenges and CapEx Dependencies

Q1 did not mention these topics; Q2 emphasized high CapEx spending for 5‑nm tape-outs and monitoring of inventory and product consumption " " ; Q3 had minimal mention principally noting CapEx figures. "

Q4 delves into evolving global tariff impacts and macro conditions with proactive geographic diversification and highlights increased CapEx for upcoming 3‑nm tape-outs, indicating strategic investments to fuel growth (flexibility and higher CapEx noted " " " ).

Increased attention and proactive management; while earlier periods touched on CapEx, Q4 reflects a more strategic approach to supply chain flexibility and planned capital investments amid evolving macro factors.

Revenue Volatility and Unpredictable Order Patterns

Q1 referenced variability in IP licensing revenue and dependency on a few large orders; Q2 and Q3 discussed impacts of customer order patterns and seasonality concerns (noted indirectly through customer mix volatility " " " ).

Q4 did not directly mention revenue volatility but emphasized customer diversification and sequential growth guidance, suggesting that diversification efforts may help stabilize revenue despite inherent unpredictability ( " " ).

Less explicit discussion in Q4; overall sentiment shifts from highlighting volatility to emphasizing diversification, implying confidence in mitigating unpredictable order patterns.

Gross Margin Sustainability and Operating Leverage Concerns

Q1 reported lower margins affected by reduced IP contributions (62.9% non‑GAAP " ) but set guidance for Q2; Q2 saw improved margins and operating income (gross margin near 63.6% and improving operating leverage " ); Q3 further strengthened margins with sequential gains and operating income surge (non‑GAAP margins and operating leverage improvements " " " ).

In Q4 Credo reported a non‑GAAP gross margin of 67.4% (well above guidance) and strong operating leverage with non‑GAAP operating margins nearing 36.8%, along with guidance pointing to near‑40% net margins, indicating scale benefits (details in " " " ).

Significant, positive progression; margins and operating leverage continue to improve as scale increases, and expectations remain robust for near‑term and long‑term margin sustainability.

IP Licensing Revenue Predictability

Q1 discussions emphasized the lumpy, unpredictable nature of IP licensing revenue (variable quarter‑to‑quarter with 10–15% long‑term targets not met in Q1 " " " ); Q2 reiterated its lumpy pattern with expectations to remain a minor portion (below 10% " ); Q3 provided minimal emphasis on IP figures. " "

In Q4, management indicated that IP licensing revenue would not be separately broken out as it is expected to remain below 5% of total revenue, underscoring its diminishing role as product revenue accelerates. "

Decreasing reliance on IP licensing; as product revenue accelerates, IP licensing is becoming a less significant and more predictable, low‑percent component of the overall revenue mix.

Emerging Scale-up Network Growth Opportunities

Q1 highlighted opportunities with emerging hyperscalers and next‑tier data center operators expanding for AI needs (new 10% customer expected " " " ); Q2 addressed AI cluster evolution and PCIe retimer introductions that bolster scale‑up architectures (see " " ); Q3 further explored the transition from Gen5 to Gen6 and even the UAL discussion for increased bandwidth (e.g. 224‑gig potential " " ).

Q4 emphasized upcoming design wins and a robust roadmap for scale‑up networks, with clear expectations for revenue ramps beginning in 2026 and continued focus on PCIe advancements to support evolving data center architectures (detailed in " " " ).

Sustained growth opportunities; optimism remains high as emerging scale‑up network trends driven by AI and next‑generation connectivity solidify Credo’s strategic positioning for future revenue growth.