Companies /Technology

Credo Technology Group Holding Ltd

NASDAQ: CRDO Semiconductors
$232.75
▼ $7.49 (−3.12%) today
Markets closed · 8:08pm ET

Q3 2025 Earnings

Reported Mar 4, 2025, 4:07pm ET · SEC source
$0.25
Beat +36.54%
EPS · est. $0.18
$135.0M
Beat +12.17%
Revenue · est. $120.4M
−15.4%
Trailing market
CRDO vs S&P since report
8 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−27%−18%−9%0Mar 4Mar 5report 4:07pm ETearnings+0.6%−24.1%
−27%−18%−9%0Mar 4Mar 5earnings+0.6%−24.1%
CRDO −24.1%S&P 500 +0.6%
−27%−18%−9%0Mar 4Mar 5report 4:07pm ETearnings+0.6%−24.1%
−27%−18%−9%0Mar 4Mar 5earnings+0.6%−24.1%
CRDO −24.1%NASDAQ +0.6%
−30%−20%−10%0Mar 3Mar 12report 4:07pm ETearnings−3.6%−11.9%
−30%−20%−10%0Mar 3Mar 12earnings−3.6%−11.9%
CRDO −11.9%S&P 500 −3.6%
−30%−20%−10%0Mar 3Mar 12report 4:07pm ETearnings−4.3%−11.9%
−30%−20%−10%0Mar 3Mar 12earnings−4.3%−11.9%
CRDO −11.9%NASDAQ −4.3%
−13.97%
Day of report
−9.97%
Next session
+1.71%
One week
−28.74%
30 days

S&P 500 over the same 30 days: −13.34%.

Did CRDO Beat Earnings? Q3 2025 Results

Credo Technology Group posted a blowout fiscal third quarter, reporting non-GAAP EPS of $0.25 against a consensus estimate of $0.18, a beat of 36.54%, while revenue of $135.00 million topped estimates of $120.36 million by 12.17% and surged 154.4% year over year. The engine behind those numbers was Credo's Active Electrical Cable product line, which powered product sales to $129.37 million and helped swing the company to GAAP operating income of $26.19 million from an operating loss of $5.91 million in the year-ago period. Non-GAAP gross margin held at 63.8%, and non-GAAP operating margin expanded sharply to 31.4%. Despite the strong print, shares fell sharply in the session following the report, as investors appeared to have already priced in the company's momentum within AI infrastructure buildouts. Looking ahead, management guided Q4 revenue to $155.00 million to $165.00 million, with non-GAAP gross margin expected between 63.0% and 65.0%, signaling continued confidence in accelerating demand for high-bandwidth connectivity solutions.

Key Takeaways
  • Active Electrical Cable (AEC) product line drove record revenue in Q3
  • Inflection point in business as anticipated by management
  • 154% year-over-year revenue growth and 87% sequential growth
  • Non-GAAP operating margin expanded to 31.4% from 4.6% year over year

“During the third quarter ended February 1, 2025 Credo generated revenue of $135.0 million, up 87% sequentially and 154% year over year. We achieved record revenue in the third quarter, driven by our AEC product line, as we experienced the inflection point in our business that we had expected. Going forward, we expect continued growth across our product lines and customer base as market demand for innovative connectivity solutions continues to grow.”

Credo Technology Group CEO, on the earnings call

Forward Guidance & Outlook

For Q4 FY2025 (three months ending May 3, 2025), Credo expects revenue between $155.0 million and $165.0 million. GAAP gross margin is expected between 62.7% and 64.7%, with non-GAAP gross margin between 63.0% and 65.0%. GAAP operating expenses are expected between $73.0 million and $75.0 million, and non-GAAP operating expenses between $50.0 million and $52.0 million. Management expects continued growth across product lines and customer base as market demand for innovative connectivity solutions continues to grow.

CRDO YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$40.0M$80.0M$120.0M$53.1M$135.0MRevenue$32.6M$85.9MGross Profit$4.1M$26.2MOperating Income$428,000$29.4MNet Income
$0$40.0M$80.0M$120.0MRevenueGross ProfitOperating IncomeNet Income

CRDO Revenue by Segment

Product Sales$129.4M
IP License$3.0M
Product Engineering Services$2.7M

Figures from SEC filings and company reports. Not investment advice.