Credo Technology (CRDO) Net Margin Breakout Tests Bearish Narratives In Q3 2026
Credo Technology (CRDO) Net Margin Breakout Tests Bearish Narratives In Q3 2026
Publish Date: 2026-03-04 09:02:00
Source Domain: simplywall.st
Credo Technology Group Holding (CRDO) has just posted Q3 2026 results with revenue of US$407.0 million and basic EPS of US$0.86, set against a trailing twelve month net income of US$339.8 million that reflects very large year over year earnings growth and a move into profitability over the last five years. The company has seen revenue move from US$135.0 million and basic EPS of US$0.17 in Q3 2025 to US$407.0 million and US$0.86 in Q3 2026, alongside trailing twelve month EPS stepping up from US$0.03 to US$1.94 over the same window, which ties into a margin story that now centers on a 31.8% net profit margin versus 1.5% a year earlier.
See our full analysis for Credo Technology Group Holding.
With the latest numbers on the table, the next step is to set these results against the most common stories around Credo. This helps highlight where the recent margin profile fits with, or pushes back on, the prevailing narratives.
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NasdaqGS:CRDO Revenue & Expenses Breakdown as at Mar 2026
TTM earnings move past US$339 million
- On a trailing twelve month basis, Credo has US$1.07b in revenue and US$339.8 million in net income, with basic EPS at US$1.94 compared with US$0.31 a year earlier in the same trailing window.
- Consensus narrative highlights strong demand from AI and cloud customers as a key driver, and these TTM figures line up with that story, while also raising the question of how much current AI build activity may have pulled demand forward.
- The TTM revenue line has moved from US$436.8 million at Q4 2025 to US$1.07b at Q3 2026, which fits the view that AI and data center spending have been a big tailwind.
- At the same time, the consensus narrative flags the risk that if hyperscaler capital spending slows after this build phase, revenue and earnings could become more volatile than these trailing numbers suggest.
Net margin at 31.8% challenges bearish worries
- Trailing net profit margin now…
