CRDO · PEAD ↓ 94

Credo Technology reported Q4 FY2026 EPS of $1.16 on 2026-06-01, beating the $1.03 consensus by $0.13 (+12.6%).

Print-day reaction was -4.2% versus the prior close — a sharp reversal despite the double-digit EPS beat, suggesting the market had already priced in an aggressive upside scenario. The overnight gap to the T+1 open added a further -3.1%, indicating no after-hours stabilisation and sustained selling pressure into the following session. Over the subsequent two trading days the stock continued to drift lower by an additional -5.0%, with no mean-reversion to soften the cumulative damage. Cumulative abnormal return of -7.9% versus SPY.US places this firmly in PEAD short territory; the documented drift pattern holds through the holding window end date of 2026-08-27.