Credo Technology recently released its 10-K report. Credo Technology Group Holding Ltd. designs and sells high-speed connectivity products for optical and electrical Ethernet, PCIe, and related data-center applications in the U.S., Taiwan, Mainland China, Hong Kong, and other markets. Its portfolio includes active electrical cables, optical PAM4 digital signal processors, line card PHYs, SerDes chiplets and IP, PCIe retimers, and related support services, and it sells to hyperscalers, OEMs, ODMs, optical module makers, and enterprise and HPC customers.
In Item 7, Credo said fiscal 2026 revenue rose to $1.34 billion from $436.8 million in fiscal 2025, an increase of 205.7%, driven almost entirely by higher unit shipments of AEC products. The company said the ramp-up of AEC solutions at hyperscale data center customers accounted for more than 99% of the revenue increase. Cost of revenue climbed to $426.8 million from $153.9 million, up 177.4%, while gross profit increased to $908.3 million from $282.9 million.
Gross margin improved to 68.0% from 64.8%, a gain of 3.2 percentage points. Operating expenses rose, but much more slowly than revenue: research and development increased 90.2% to $279.4 million, and selling, general and administrative expenses increased 86.0% to $184.0 million. As a result, operating income reached $445.0 million, or 33.3% of revenue, compared with $37.1 million, or 8.5% of revenue, in fiscal 2025.
Net income increased to $472.3 million from $52.2 million. The company said North America accounted for 58% of fiscal 2026 revenue, while the rest of the world, primarily Asia, accounted for 42%; in fiscal 2025, North America represented 15% and the rest of the world 85%. Credo also said a substantial majority of revenue still comes from a limited number of customers, with customer concentration expected to remain significant for the foreseeable future. Today the company's shares have moved -4.4% to a price of $247.9937. For more information, read the company's full 10-K submission here.
