Credo Technology stock jumped 14.9% in after-hours trading Monday after the connectivity solutions provider reported preliminary third quarter revenue far exceeding analyst expectations.

The company expects to report third quarter fiscal year 2026 revenue between $404 million and $408 million, significantly above its previously announced guidance range of $335 million to $345 million. This also surpasses analyst consensus estimates of $341.2 million by a wide margin.

Credo, which provides fast, reliable, and energy-efficient connectivity solutions at scale, also updated its outlook for the remainder of the fiscal year. The company anticipates sequential revenue growth in the mid-single digits for the fourth quarter, which would result in more than 200% YoY growth for the current fiscal year.

The strong preliminary results highlight Credo’s accelerating momentum in the high-performance connectivity market, where demand for efficient data transfer solutions continues to grow alongside the expansion of data-intensive applications and AI infrastructure.

Credo is scheduled to release its complete third quarter fiscal year 2026 financial results in the coming weeks, which will provide more detailed insights into the company’s performance and outlook.