Credo Technology Group Holding Ltd

CRDO · NASDAQ

$229.00▲ +1.28%

+$2.90 today

Mkt cap $42.24B
P/E 126.5
Day $210.72 – $245.95

Confidence

High conviction

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The read

Credo Technology reports 0.00 EPS vs 1.03 estimate, shares rise modestly amid strong growth metrics

Credo Technology missed EPS estimates by 100%, reporting 0.00 versus 1.03 expected for fiscal Q2 2026, yet shares rose 1.3% to 229.00. Despite the EPS miss, the company maintains strong growth with 205.7% TTM revenue growth and a PEG ratio of 0.65, indicating attractive growth-adjusted valuation. Insider selling and a pricey P/E relative to sector remain risks. Investors should watch upcoming quarterly guidance for margin or earnings inflection.

Confidence note: High confidence due to concrete reported EPS miss, strong growth metrics, and clear valuation signals; limited by absence of explicit guidance data.

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What happened

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Earnings print

Credo reported EPS of 0.00 versus an estimate of 1.03, missing by 100%.

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Guidance

No explicit guidance was provided in the payload; future earnings updates are key catalysts.

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Price reaction

Shares rose 1.28% on the day to 229.00 despite the EPS miss, supported by strong growth metrics.

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Street narrative

The earnings miss contrasts with strong fundamental scores: 205.7% revenue growth TTM, PEG 0.65, and a forward P/E 9% cheaper than sector average. Insider selling (-6.4% net over 6 months) and a high absolute P/E (92.3 vs sector 42.1) pose valuation risks.

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So what

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What changed

EPS missed by 100% at 0.00 versus 1.03 estimate, shares rose 1.3% amid strong growth metrics.

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What the market is pricing

Market is pricing continued growth despite EPS miss, reflected in modest share price gain and strong momentum scores.

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Fundamental takeaway

Maintain a cautious growth stance; watch next quarterly guidance for margin or EPS recovery signals.

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Next 30–90 days

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50%

Credo rebounds with margin improvement and EPS recovery, validating growth valuation.

boltNext quarterly EPS beats consensus by at least 10%
boltGuidance raises revenue growth above 20% YoY

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34%

Growth continues but EPS volatility persists; valuation remains supported by strong revenue expansion.

boltRevenue growth remains above 20% YoY
boltEPS remains flat or modestly positive

trending_downBear

16%

Earnings execution deteriorates further, triggering valuation reset and share price weakness.

boltNext quarter EPS misses by more than 20%
boltGuidance lowered for revenue or margins

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What to do

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If you hold it

Hold unless next quarter EPS misses consensus by more than 20% or guidance is cut materially.

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If you're watching

Add only if next-quarter guidance is reiterated or raised; avoid if guidance is cut or geopolitical risk escalates.

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Keep on your radar

Next quarterly EPS report and guidance release (expected within 90 days)
Revenue growth rate in next quarter exceeding 20% YoY
Insider trading trends over next 3 months
Forward P/E multiple relative to sector average