---
title: "Why Credo Technology Stock Exploded Higher Today"
description: "Shares of Credo Technology Group surged 24.5% after the company reported earnings of $0.35 per share, exceeding analyst expectations of $0.27, with sales of $170 million for Q4 2025. Despite a 180% ye"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/242964414.md"
published_at: "2025-06-03T14:43:01.000Z"
---

# Why Credo Technology Stock Exploded Higher Today

> Shares of Credo Technology Group surged 24.5% after the company reported earnings of $0.35 per share, exceeding analyst expectations of $0.27, with sales of $170 million for Q4 2025. Despite a 180% year-over-year sales increase, GAAP profits were only $0.20 per share. CEO Bill Brennan expressed pride in the company's performance, noting a shift to profitability. Credo anticipates further sales growth to $190 million in Q1 2026, though its valuation remains high at over 260 times trailing earnings, suggesting it could still be a viable growth stock.

Shares of San Jose-based high-speed connectivity solutions provider **Credo Technology Group** (CRDO 24.98%) stock jumped 24.5% through 10:10 a.m. ET this morning after beating analyst forecasts last night.

Heading into its fiscal fourth quarter of 2025, analysts forecast Credo would earn only $0.27 per share on less than $160 million in sales. In fact, Credo reported last night, it earned $0.35 per share, adjusted for one-time items, and sales were $170 million, for the period ended May 3.

Image source: Getty Images.

## Credo's Q4 earnings

Not all the news is good. Sales surged nearly 180% year over year, which is great. Earnings as calculated according to generally accepted accounting principles (GAAP) were up only 25%, however, despite the impressive "adjusted" earnings beat.

Actual GAAP profits for the quarter were only $0.20 -- not $0.35.

Still, CEO Bill Brennan said he was "proud" of the company's achievements in 2025. For the full year, sales grew 126%, while cost of revenue grew only 109%, improving the company's gross profit margin. And operating costs grew only 57%, improving the company's operating profit margin even more.

For both the quarter and the year, Credo flipped from operating and net losses to operating and net profits. GAAP profit for the year was $0.29 per share.

## Is Credo stock a buy?

So no wonder investors are pleased. And it didn't hurt that Credo guided investors to expect further sales growth (about $190 million, triple last year's Q1 sales) and a further improved gross margin (about 64.5%) in fiscal Q1 2026, currently underway.

At a valuation of more than 260 times trailing earnings, Credo stock is anything but a cheap stock. But if it keeps growing sales at its current pace, and expanding profit margins besides, this stock could still be a good growth stock -- and a buy.

### Related Stocks

- [CRDO.US - Credo Tech](https://longbridge.com/en/quote/CRDO.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Rosenblatt 證券繼續對 Credo Technology Group Holding Ltd (CRDO) 維持持有評級 | Rosenblatt Securities 分析師 Michael Genovese 對 Credo Technology Group Holding Ltd (CRDO) 維持了持有評級，目標價為 170.00 美元。專注於科技領域的 G | [Link](https://longbridge.com/en/news/275397748.md) |
| Credo Technology Group Holding Ltd (CRDO)：這家科技巨頭的新買入建議 | 瑞穗證券分析師 Vijay Rakesh 重申了對 Credo Technology Group Holding Ltd (CRDO) 的買入評級，目標價為 225.00 美元。Rakesh 是一位頂級分析師，成功率為 65.52%，同時也 | [Link](https://longbridge.com/en/news/275383451.md) |
| 由於零售銷售數據令人失望，股指期貨表現平淡 | 主要基準的期貨保持穩定，交易者正在分析令人失望的零售銷售數據，該數據表明 12 月份消費者支出持平，未能達到預期。可口可樂的股票因營收不及預期下跌了 2.1%，而 Credo Technology 的股票因積極的指引上漲了 15.2%。Ch | [Link](https://longbridge.com/en/news/275475024.md) |
| Credo Technology Group Holding Ltd. $CRDO 的持股量被 Allianz Asset Management GmbH 提升 | 安聯資產管理公司在第三季度顯著增加了對 Credo Technology Group Holding Ltd.的持股，增幅達到 2,059.9%，目前持有 57,389 股，價值 836 萬美元。其他機構投資者也提高了他們的持倉。分析師對  | [Link](https://longbridge.com/en/news/275460319.md) |
| Truist Financial Corp 增加了對 Credo Technology Group Holding Ltd. $CRDO 的股票持有量 | Truist Financial Corp 在第三季度將其在 Credo Technology Group Holding Ltd. 的持股比例增加了 420.5%，目前持有 18,452 股，價值 269 萬美元。其他對沖基金也增加了持股 | [Link](https://longbridge.com/en/news/275203817.md) |

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.