Credo Tech Posts Record Q1 Revenue, Signals Strong Optical Growth for FY2027
Credo Technology reported Q1 fiscal 2027 revenue of $479 million, up 10% sequentially and 115% year over year, with Non-GAAP gross margin at 68% and Non-GAAP net income of $236.3 million; operating cash flow was $90.2 million, free cash flow $82.9 million, and cash on hand $764.3 million after the DustPhotonics acquisition. The company guided Q2 revenue to $525–535 million and reiterated a FY2027 optical revenue target above $600 million, driven by ZeroFlap Optics, Silicon Photonics PICs and Optical DSPs, with continued AEC growth and multi-billion dollar TAM opportunities in pluggable transceivers and OmniConnect. Risks include high customer concentration (top four customers ≥10% each, largest ~33%), elevated opex (+16% sequentially to $95.2 million), rising inventory ($313.1 million), and potential supply-chain/tariff headwinds as ramp progresses toward 2028.