Does The Drop In Credo Stock Change Anything? Trefis Team Tue, October 13, 2026 at 2:05 PM EDT 3 min read CRDO -1.22% ALAB -0.14% ^GSPC -0.02% MRVL +0.35% AVGO +0.95% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Shares of Credo Technology (CRDO) fell 7.3% on Monday, October 12, 2026, alongside a 0.1% slip in the S&P 500. Astera Labs, a peer, fell 5.3% in the same session. Credo is also showcasing its ZeroFlap Active Light Cable, an optical connection for AI data centers, at the OCP Global Summit, which opened that day, though we found no report tying the fall to the event. The company last provided results and forecasts during its September 1 earnings call. So has anything about the company changed since then?
What Are Credo Shareholders Paying After The Drop?
Shareholders are paying 69.4 times Credo's earnings, compared with 21.9 for the S&P 500. When measured against sales, the stock is priced at 23.5 times revenue, while the broader index sits at 3.1.
Credo stock is now 33.6% below its 52-week high, yet the share price still appears to assume the company keeps growing far faster than most.
Is Credo Still Doubling Its Revenue?
In the latest quarter, the answer is yes. Revenue reached $479 million in fiscal Q1 2027, the period Credo reported on September 1. That figure is up 115% from a year earlier. Active Electrical Cables, which connect GPUs to switches inside AI data centers, remain its largest business, management said on that call.
That pace has slowed, however. Revenue was growing 272.1% year over year three quarters earlier. Growth has been lower in each quarter since. For the whole of fiscal 2027, management expects revenue to grow more than 85%.
Credo has become more profitable during this time. Its operating margin over the past twelve months was 32%, up from 18.7% a year earlier.
What Credo Forecast In September, And Where Its Balance Sheet Stands
Optical products factor into the forecast Credo provided in September. Management expects more than $600 million of optical revenue in fiscal 2027. Newer products are further out on the timeline. Management noted that revenue from its OmniConnect solutions, built for the memory needs of next-generation AI architectures, begins in fiscal 2028.
The fall in the stock did not change Credo's finances. Credo holds $0.7 billion more in cash than in debt. That debt equals 0.1% of its market value, compared with 21% for the S&P 500.
For fiscal Q2 2027, management expects revenue of $525 million to $535 million, up from the $479 million it reported for Q1. Revenue against that range is the metric to watch in Credo's next quarterly report.
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