Uncovering Potential: Credo Technology Group's Earnings Preview

Credo Technology Group (NASDAQ:CRDO) is set to give its latest quarterly earnings report on Monday, 2025-12-01. Here's what investors need to know before the announcement.

Analysts estimate that Credo Technology Group will report an earnings per share (EPS) of $0.42.

The announcement from Credo Technology Group is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

The company's EPS beat by $0.20 in the last quarter, leading to a 7.4% increase in the share price on the following day.

Here's a look at Credo Technology Group's past performance and the resulting price change:

Quarter	Q1 2026	Q4 2025	Q3 2025	Q2 2025
EPS Estimate	0.32	0.27	0.18	0.05
EPS Actual	0.52	0.35	0.25	0.07
Price Change %	7.00	15.00	-14.00	48.00

Credo Technology Group Share Price Analysis

Shares of Credo Technology Group were trading at $164.01 as of November 27. Over the last 52-week period, shares are up 243.12%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Credo Technology Group

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Credo Technology Group.

A total of 11 analyst ratings have been received for Credo Technology Group, with the consensus rating being Outperform. The average one-year price target stands at $158.64, suggesting a potential 3.27% downside.

Peer Ratings Overview

This comparison focuses on the analyst ratings and average 1-year price targets of First Solar, Microchip Technology and Astera Labs, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for First Solar, with an average 1-year price target of $268.9, suggesting a potential 63.95% upside.
• Analysts currently favor an Neutral trajectory for Microchip Technology, with an average 1-year price target of $68.22, suggesting a potential 58.4% downside.
• Analysts currently favor an Buy trajectory for Astera Labs, with an average 1-year price target of $204.58, suggesting a potential 24.74% upside.

Snapshot: Peer Analysis

The peer analysis summary provides a snapshot of key metrics for First Solar, Microchip Technology and Astera Labs, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Credo Technology Group	Outperform	273.57%	$150.37M	8.67%
First Solar	Buy	79.67%	$610.75M	5.19%
Microchip Technology	Neutral	-2.01%	$637.90M	0.21%
Astera Labs	Buy	103.89%	$175.81M	7.57%

Key Takeaway:

Credo Technology Group ranks highest in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it has the lowest Return on Equity. Overall, Credo Technology Group is positioned favorably compared to its peers in terms of financial performance metrics.

Unveiling the Story Behind Credo Technology Group

Credo Technology Group Holding Ltd delivers high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market. It provides secure, high-speed connectivity solutions that deliver improved power and cost efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market. It has a geographic presence in Hong Kong, the United States, Mainland China, Taiwan, and the Rest of the World.

Unraveling the Financial Story of Credo Technology Group

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Positive Revenue Trend: Examining Credo Technology Group's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 273.57% as of 31 July, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 28.42%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Credo Technology Group's ROE excels beyond industry benchmarks, reaching 8.67%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Credo Technology Group's ROA excels beyond industry benchmarks, reaching 7.4%. This signifies efficient management of assets and strong financial health.

Debt Management: Credo Technology Group's debt-to-equity ratio is below the industry average. With a ratio of 0.02, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Credo Technology Group visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.