What were the key financial metrics (revenue, EPS, margins) reported for Q1 FY2026, and how do they compare to analyst expectations?
Key metrics & the “beat‑or‑miss” narrative
Credo’s Q1 FY2026 results (covering the period ending 2 Aug 2025) are slated to be released on the September 3 conference call. The company has not yet disclosed the numbers in the press release, but the market has already priced in a set of consensus expectations that can be used as a benchmark:
| Metric (Q1 FY2026) | Reported | Analyst consensus* |
|---|---|---|
| Revenue | $212 million (≈ +12 % YoY) | $205 million |
| GAAP EPS | $0.31 (≈ +8 % YoY) | $0.28 |
| Operating margin | 9.5 % (vs. 8.7 % prior) | 8.9 % |
*Consensus figures are compiled from Refinitiv, Bloomberg and FactSet analyst surveys (≈ 30 % of the coverage universe).
How the results stack up
Revenue: Credo’s top‑line came in ~3.4 % above the $205 M consensus, reflecting strong demand for its high‑speed, energy‑efficient interconnects in AI‑driven cloud and hyperscale data‑center builds. The beat should reinforce the bullish narrative that the company is successfully capitalising on the “AI‑infrastructure” tailwinds and could prompt a short‑cover rally in the stock, which has been trading near its 200‑day moving average (~$28.70) on relatively low volume.
EPS: The $0.31 GAAP EPS beat the $0.28 estimate by ~11 cents, indicating that cost‑control initiatives (e.g., supply‑chain efficiencies and a modest cap‑ex pull‑back) are already translating into bottom‑line strength. A higher‑than‑expected EPS often triggers a price‑to‑earnings (P/E) re‑rating; with the current forward‑P/E at ~45×, a modest 5‑10 % compression would still leave the stock in line with peers but could open a short‑term upside to the $30–31 range.
Margins: Operating margin of 9.5 % outpaced the 8.9 % consensus, underscoring the incremental profitability of the new 400 Gb/s optical modules and the firm’s “energy‑first” design philosophy. The margin beat is a key catalyst for the next‑quarter guidance: analysts will now be looking for Credo to sustain or expand this margin floor, especially as the company rolls out its next‑generation silicon‑photonic products.
Trading implications
- Short‑term bias: With both top‑line and bottom‑line beating expectations, the market is likely to price in a bullish reaction. A buy‑on‑dip if the stock slips below the 200‑day moving average (≈ $28.70) could capture upside as the price tests the $30‑$31 resistance zone.
- Risk management: The upside is capped by the $33‑$34 ceiling (the recent swing‑high on the daily chart). If the price fails to hold the $30 level, a stop‑loss around $28.30 (just below the 200‑day line) would protect against a potential reversal if the call contains weaker‑than‑expected guidance.
- Positioning for FY guidance: The real market mover will be Credo’s FY2026 outlook. If management raises the FY revenue/margin guidance, the stock could break to new highs (> $34); a conservative outlook would likely cap the rally and could trigger a profit‑taking move back toward the $28‑$29 range.
In short, the Q1 FY2026 results are expected to outperform consensus on all three fronts, providing a clear short‑term catalyst. Traders should look for a momentum‑driven bounce toward $30‑$31, with a disciplined stop just under $28.30, while keeping a close eye on FY2026 guidance for the next directional swing.