JP Insights(@jpinsights):$CRDO Credo. We got a pretty clear answer to the question I raised below. Management now expects >85% FY27 revenue growth, while reiterating the >$600M optical target and saying the H2 inflection remains intact. More importantly, they gave us some of the pieces behind that ramp: ZeroFlap production shipments are already underway, Credo booked its first silicon photonics revenue in Q1, optical DSP revenue hit a record, and 1.6T DSP revenue is still expected later this fiscal year. They are also deliberately building working capital ahead of H2. Brennan said they are “leaning in” on supply and feel good about their ability to supply the higher volumes. So the ~$700M+ quarterly revenue level needed in H2 is still a big step up. But after the call, we have a much better idea of what is supposed to get them there.

2026.09.02 05:22

$CRDO Credo. We got a pretty clear answer to the question I raised below. Management now expects >85% FY27 revenue growth, while reiterating the >$600M optical target and saying the H2 inflection remains intact. More importantly, they gave us some of the pieces behind that ramp: ZeroFlap production shipments are already underway, Credo booked its first silicon photonics revenue in Q1, optical DSP revenue hit a record, and 1.6T DSP revenue is still expected later this fiscal year. They are also deliberately building working capital ahead of H2. Brennan said they are “leaning in” on supply and feel good about their ability to supply the higher volumes. So the ~$700M+ quarterly revenue level needed in H2 is still a big step up. But after the call, we have a much better idea of what is supposed to get them there.

JP Insights@jpinsights

2026.09.01 20:12

$CRDO FY27 still requires a pretty sharp second half. Q1 came in at $479M and Q2 is guided to $525–535M. At the midpoint, that puts H1 revenue at roughly $1.01B. To reach the >80% FY27 growth target, Credo would need about $1.39B in H2 revenue, or roughly $693M per quarter. That is about 31% above the Q2 midpoint. So the setup is pretty simple from here: the H2 ramp needs to be real. And that is why I care much more about what management says tonight about optical revenue and the timing of those ramps than whether Q1 beat estimates by a few million dollars.

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