Credo Technology Group Holding Ltd (NASDAQ:CRDO) saw its stock surge roughly 17% in after-hours trading on Monday after the connectivity solutions provider disclosed preliminary third quarter fiscal year 2026 revenue that significantly outpaced expectations.
The company said it expects third quarter revenue to fall between $404 million and $408 million. That range sits well above the firm’s earlier guidance of $335 million to $345 million and substantially exceeds the analyst consensus figure of $341.2 million.
In addition to the preliminary top-line results, Credo updated its outlook for the rest of the fiscal year. The company anticipates sequential revenue growth in the mid-single digits for the fourth quarter - a pace that, if realized, would translate into more than 200% year-over-year growth for the current fiscal year.
Credo is described by the company as a provider of fast, reliable, and energy-efficient connectivity solutions at scale. The strong preliminary third quarter figures point to accelerating momentum in the high-performance connectivity market, a segment that the company said is being driven by expanding demand for efficient data transfer as data-intensive applications and AI infrastructure grow.
The company is scheduled to publish its complete third quarter fiscal year 2026 financial results in the coming weeks. Those fuller results will provide greater detail on Credo’s revenue drivers, margins, and outlook for the remainder of the fiscal year.
Summary
Credo reported preliminary Q3 fiscal 2026 revenue of $404 million to $408 million, a substantial beat versus prior guidance of $335 million to $345 million and analyst consensus of $341.2 million. The stock jumped about 17% in after-hours trading on Monday. Management also projects mid-single digit sequential revenue growth in Q4, which would produce over 200% YoY growth for the fiscal year if achieved. Full quarterly results will be released in the coming weeks.
Key points
- Preliminary Q3 revenue expected at $404 million to $408 million, above prior guidance and consensus.
- Company expects mid-single digit sequential revenue growth in Q4, implying more than 200% YoY growth for the fiscal year if realized.
- Results underscore demand in high-performance connectivity tied to data-intensive applications and AI infrastructure.
Risks and uncertainties
- The figures cited are preliminary - full third quarter fiscal 2026 results have yet to be released and may provide additional detail that could affect interpretation.
- Fourth-quarter outlook is an expectation - actual sequential growth could differ from the mid-single digit projection.
- Market reaction may change once the company issues its complete quarterly report in the coming weeks.