Microsoft(MSFT) Benzinga·2025-03-05 19:17Core Insights - Credo Technology Group reported third-quarter earnings of 25 cents per share, exceeding the analyst consensus estimate of 18 cents, with quarterly revenue of 53.05 million a year ago, and above the consensus estimate of 155 million and 137.43 million [1] Financial Performance - The revenue beat was driven by a substantial increase in sales to its largest customer, Amazon, which accounted for 86% of third-quarter revenue, reflecting a sequential growth of 388% [2][4] - Management expects Amazon's revenue contribution to remain strong in the fourth quarter, while other customers are projected to account for approximately 33% of total revenue [3][4] Customer Diversification - Credo is planning to diversify its customer base, with expectations that 3-4 customers will exceed the 10% revenue threshold starting in the fourth quarter of fiscal 2025 and continuing into fiscal 2026 [4][6] - The company has ramped AECs (Application-Specific Integrated Circuits) at three hyperscalers, including Microsoft and Amazon, and is in qualification with two additional hyperscalers for fiscal 2026 [6][7] Future Outlook - Management reiterated expectations for over 50% growth in fiscal 2026, despite a more robust second half of fiscal 2025 than previously anticipated [5] - Analysts have responded positively, with Needham and Roth MKM maintaining a Buy rating on Credo, both setting a price target of 80 to 45.87 [9]