Companies /Technology

Credo Technology Group Holding Ltd

NASDAQ: CRDO Semiconductors
$238.29
▼ $1.96 (−0.81%) today
Markets open · 10:56am ET

Q2 2026 Earnings

Reported Dec 1, 2025, 4:07pm ET · SEC source
$0.67
Beat +35.27%
EPS · est. $0.50
$268.0M
Beat +14.06%
Revenue · est. $235.0M
−26.5%
Trailing market
CRDO vs S&P since report
8 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−6%0+6%Dec 1Dec 2report 4:07pm ETearnings+0.3%−2.1%
−12%−6%0+6%Dec 1Dec 2earnings+0.3%−2.1%
CRDO −2.1%S&P 500 +0.3%
−12%−6%0+6%Dec 1Dec 2report 4:07pm ETearnings+1.0%−2.1%
−12%−6%0+6%Dec 1Dec 2earnings+1.0%−2.1%
CRDO −2.1%NASDAQ +1.0%
−12%−6%0Dec 1Dec 9report 4:07pm ETearnings+0.4%−12.8%
−12%−6%0Dec 1Dec 9earnings+0.4%−12.8%
CRDO −12.8%S&P 500 +0.4%
−12%−6%0Dec 1Dec 9report 4:07pm ETearnings+1.2%−12.8%
−12%−6%0Dec 1Dec 9earnings+1.2%−12.8%
CRDO −12.8%NASDAQ +1.2%
+10.12%
Day of report
+0.40%
Next session
−9.63%
One week
−25.58%
30 days

S&P 500 over the same 30 days: +0.91%.

Did CRDO Beat Earnings? Q2 2026 Results

Credo Technology Group delivered a blowout fiscal second quarter, posting non-GAAP earnings of $0.67 per diluted share against a consensus estimate of $0.50, a beat of 35.27% that extended the company's streak of exceeding EPS expectations to five consecutive quarters. <a href="https://247wallst.com/investing/2025/12/01/live-credo-technology-crdo-q2-earnings-coverage/">Revenue came in</a> at $268.03 million, topping estimates by 14.06% and representing a staggering 272.1% year-over-year jump, powered almost entirely by product sales of $261.29 million as hyperscalers raced to build out AI training and inference clusters. GAAP operating income swung to $78.80 million from a loss of $8.41 million a year ago, while non-GAAP operating margin reached 46.3%, underscoring how rapidly Credo's high-speed connectivity solutions have scaled. Looking ahead, management guided Q3 FY2026 revenue to $335 million to $345 million, implying roughly 25-29% sequential growth, though non-GAAP gross margins are expected to compress to 64%-66% as newer product lines including ZeroFlap Optics and Active Line Cards begin ramping alongside the core AEC and IC franchises.

Key Takeaways
  • Continued build-out of world's largest AI training and inference clusters
  • 272% year-over-year revenue growth driven by surging demand for AEC and IC products
  • Strong non-GAAP operating margin expansion to 46.3%
  • Product sales revenue grew 278% year over year

“In the second quarter Credo delivered revenue of $268.0 million, an increase of 20% sequentially and an extraordinary 272% increase year-over-year. These are the strongest quarterly results in Credo's history, and they reflect the continued build-out of the world's largest AI training and inference clusters.”

Credo Technology Group CEO, on the earnings call

Forward Guidance & Outlook

For Q3 FY2026 (three months ending January 31, 2026), Credo expects revenue of $335.0 million to $345.0 million, representing approximately 25-29% sequential growth. GAAP gross margin is expected at 63.8%-65.8% and non-GAAP gross margin at 64.0%-66.0%, both below Q2 levels. GAAP operating expenses are guided to $116.0-$120.0 million and non-GAAP operating expenses to $68.0-$72.0 million. Management indicated strong revenue growth and profitability outlook through fiscal 2026 and beyond, driven by continued growth in core AEC and IC products plus upcoming ramps of ZeroFlap Optics, ALCs, and OmniConnect gearbox solutions.

CRDO YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$80.0M$160.0M$240.0M$72.0M$268.0MRevenue$45.5M$181.0MGross Profit$6.9M$78.8MOperating Income$3.8M$82.6MNet Income
$0$80.0M$160.0M$240.0MRevenueGross ProfitOperating IncomeNet Income

CRDO Revenue by Segment

Product Sales$261.3M+278.3%
IP License$6.7M+127.6%
Product Engineering Services

Figures from SEC filings and company reports. Not investment advice.