Credo Shares Slump Despite Earnings Beat -- Barrons.com

By Anita Hamilton

Shares of Credo Technology, which makes electrical cables and digital signal processors used in artificial intelligence data centers, fell sharply Tuesday despite an earnings beat.

The AI connectivity firm reported adjusted earnings for the three months ending on Aug. 1 of $1.20 a share, just beating estimates for $1.17 a share. Revenue came in at $479 million, above the $475 million high end of its own forecast and estimates of $473 million among analysts polled by FactSet.

Looking ahead, the company expects continued revenue growth. For the current quarter fiscal quarter ending in October, it is guiding at between $525 million and $535 million.

While Credo's metrics were "solid and good," Mizuho analyst Jordan Klein wrote after the report, the revenue beat and guidance "seems a bit skinnier" than in prior quarters.

Shares were down 7% and $192 in after-hours trading.

Credo's copper cables are used to connect AI servers to networking switches. Known as active electrical cables, they are embedded with microchips that boost electric signals traveling along them, thus reducing the both the amount of copper needed for them and using less energy than optical cables.

Write to Anita Hamilton at anita.hamilton@barrons.com

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September 01, 2026 17:20 ET (21:20 GMT)