Credo Technology Group announced fiscal first-quarter 2027 results marked by substantial revenue growth driven by continued demand for AI infrastructure connectivity solutions. The company reported revenue of $479 million, representing 115% year-over-year growth and a 10% sequential increase. Non-GAAP net income reached a record $236.3 million, more than doubling from the prior-year period, while non-GAAP net margin stood at 49.3%. The company achieved its seventh consecutive quarter of triple-digit year-over-year revenue growth, according to management commentary.
Chief Executive Officer Bill Brennan attributed the company’s expansion to rising AI cluster sizes, faster data rates, and increasing requirements for reliable, power-efficient connectivity. Active electrical cables remained the largest business segment, though optical products emerged as a faster-growing component. Non-GAAP gross margin reached 68%, with non-GAAP operating income totaling $230.6 million and operating margin at 48.2%. Free cash flow came to $82.9 million after capital expenditures of $7.3 million, though cash and equivalents declined to $764.3 million following the company’s DustPhotonics acquisition.
For the fiscal second quarter, Credo projected revenue between $525 million and $535 million, with non-GAAP gross margin of 67% to 69%. Full-year fiscal 2027 expectations included more than 85% revenue growth and non-GAAP net margin near 50%. The company reiterated forecasts for more than $600 million in optical revenue during the fiscal year, with optical digital signal processors, silicon photonics products, and ZeroFlap Optics each expected to contribute more than $100 million.
Operating expenses rose 16% sequentially to $95.2 million in the first quarter, driven by research-and-development investment, and management projected operating expenses of $100 million to $105 million for the second quarter. The company indicated that operating expenses would rise approximately 55% for the full fiscal year. Customer concentration remained a consideration, with four customers accounting for 84% of first-quarter revenue, though management expected ongoing diversification efforts to result in three to four customers representing more than 10% of revenue in coming quarters.
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