Credo Technology Group (CRDO) 2026 Evercore Global TMT Conference summary

Financial performance and growth trajectory

• Achieved over $1.3 billion in revenue for fiscal 2026, more than tripling from the previous year and marking a 20x increase over five years.

• Revenue growth is primarily driven by the AEC product family, with expectations for continued expansion in FY 2028 and beyond.

• Gross margin for fiscal 2026 was 68%, with guidance for fiscal 2027 to remain broadly consistent; net margin exceeded 50% in Q4.

• Operating leverage is strong, with OpEx growing at a slower rate than revenue, supported by a highly leveraged R&D model.

• The company is targeting $5 billion and beyond in revenue within the decade, driven by both copper and optical markets.

Product innovation and market positioning

• AEC systems are vertically integrated, offering reliability, lower power, and cost advantages for data center connections up to seven meters.

• ZF Optics, a new transceiver category, is positioned to become the largest segment in the optical portfolio, with rapid ramp-up expected.

• MicroLED technology, acquired via MicroLumen, extends reliable connections up to 30 meters with improved form factor and cost structure.

• OmniConnect enables ultra-efficient, short-reach SerDes for composable XPUs, supporting high-performance inference and training applications.

• The company is recognized as a full-spectrum connectivity provider, balancing copper and optical solutions for hyperscalers and Neoclouds.

Customer base and market dynamics

• Deep engagement with five of six hyperscalers and a growing list of Neoclouds, with more than six $100 million-scale AEC customers expected.

• Market growth is fueled by increasing GPU deployments, larger clusters, and the coexistence of copper and optical solutions.

• Reliability and rapid cluster deployment are key differentiators, with network reliability established as the North Star.

• The company aims to be first to deliver, qualify, and ramp new solutions, maintaining market share through customer-centric innovation.

• Demand for ZF Optics is strong, with concerns focused on supply rather than generating demand.