Credo Technology Group Holding Ltd Credo Technology Group (CRDO) reported its fiscal fourth-quarter earnings after the bell Monday, and on paper, it looked like a solid beat. Revenue came in at $437 million, topping analyst estimates of $432.05 million. Adjusted earnings per share were $1.16, also ahead of the $1.03 consensus. But the market wasn't impressed — shares fell 13.67% in after-hours trading to $195.32.

Total revenue surged 157% year-over-year and rose 7.4% sequentially. Gross margin landed at 68.2%, or 68.3% on an adjusted basis. The company ended the quarter with $1.4 billion in cash and short-term investments.

“Fiscal 2026 marked another defining year for Credo,” said Bill Brennan, president and CEO. “As we enter into fiscal 2027, Credo expects to achieve continued strong financial performance with our innovative and vertically integrated approach that enables customers to accelerate cluster time-to-stability, maximize GPU utilization, improve network reliability, and reduce overall infrastructure power and operating costs.”

Looking ahead, Credo guided first-quarter revenue in the range of $465 million to $475 million, above the $461.61 million analysts were expecting. The company also forecast adjusted gross margin between 67% and 69%.

So why the selloff? It's possible investors were hoping for an even bigger beat or a more aggressive outlook, given the stock's run-up to recent highs. Sometimes good news just isn't good enough. Credo executives will discuss the quarter in more detail on an earnings call at 5 p.m. ET.