Credo Technology Group Holding Ltd. (NASDAQ:CRDO) stock is up during Tuesday’s premarket session following the company’s announcement of preliminary revenue results for the third quarter of fiscal 2026.
Credo reported preliminary results for the third quarter of fiscal 2026 after the market closed on Monday. The company said it expects to report revenue in the range of $404 million to $408 million, up from prior guidance of $335 million to $345 million.
The Catalyst
Credo anticipates significant growth, projecting over 200% year-over-year revenue increase for the current fiscal year, with sequential growth expected in the mid-single digits as they move into fiscal year 2027.
The company will provide further details during its earnings conference call scheduled for March 2, 2026.
The broader market experienced slight gains on the previous trading day, with the Technology sector rising 0.10%. Credo’s stock is moving higher while the sector saw modest improvements, suggesting that the company’s news is driving its performance independently of broader market trends.
Currently, the stock is trading 8.8% above its 20-day simple moving average (SMA) and 3.6% below its 100-day SMA, indicating some short-term strength but also a need for caution regarding longer-term trends. Shares have increased 60.11% over the past 12 months and are currently positioned closer to their 52-week highs, reflecting a strong upward trajectory.
The RSI is at 46.58, which is considered neutral territory, while MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $156.50
- Key Support: $124.50
Credo Technology Group Holding Ltd delivers high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market.
Earnings & Analyst Outlook
Credo Technology Group Holding Ltd Ordinary Shares is slated to provide its next financial update on March 2, 2026.
- EPS Estimate: 68 cents (Up from 25 cents YoY)
- Revenue Estimate: $341.39 million (Up from $135.00 million YoY)
- Valuation: P/E of 106.4x (Indicates premium valuation)
Analyst Consensus & Recent Actions
The stock carries a Buy Rating with an average price target of $171.08. Recent analyst moves include:
- Rosenblatt: Initiated with Neutral (Target $170.00) (Jan. 21)
- Roth Capital: Buy (Raises Target to $250.00) (Dec. 2, 2025)
- Mizuho: Outperform (Raises Target to $225.00) (Dec. 2, 2025)
Valuation Insight: While the stock trades at a premium P/E multiple, the strong consensus and rising estimates suggest analysts view the growth prospects as justification for the 19% upside to analyst targets.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Credo Technology Group Holding Ltd Ordinary Shares, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: 5.12 — The stock is trading at a steep premium relative to peers.
- Growth Rank: 99.01 — Indicates strong growth potential.
- Momentum Rank: 81.75 — Stock is outperforming the broader market.
Credo Technology Group Holding Ltd Ordinary Shares’ Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Momentum (81.75) confirms the strong trend, the extremely low Value (5.12) score warns that the stock is priced for perfection—investors should ride the trend but use tight stop-losses.
Top ETF Exposure
- Themes Robotics & Automation ETF (NASDAQ:BOTT): 6.02% Weight
- iShares Russell 2000 Growth ETF (NYSE:IWO): 1.43% Weight
- SPDR S&P Semiconductor ETF (NYSE:XSD): 4.17% Weight
Because CRDO carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
CRDO Price Action: Credo Technology Group shares were up 17.49% at $145.00 during premarket trading on Tuesday, according to Benzinga Pro data.
Photo by bluestork via Shutterstock
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