Live: Credo Smashes earnings and Shares Jump 8%

Credo’s conference call starts in 15 minutes. You can register to join here.

As of 4:23 p.m. ET, Credo shares are up 9.2% after hours.

The stock was up 76% year-to-date headed into earnings. By the start of trading tomorrow shares could hit a double if buying continues.

CRDO | Credo Technology Group Q1’26 Earnings Highlights:

• Adj. EPS: $0.52 [✅]; UP +1300% YoY
• Revenue: $223.1M [✅]; UP +274% YoY
• Adj. Gross Margin: 67.6% [✅]; UP +520 bps YoY
• Net Income: $63.4M [✅]; UP +766% YoY
• Ending Cash and Short-term Investments: $479.6M

Q1’26 Outlook:

• Revenue: $230.0M – $240.0M [➖]
  • Management expects continued revenue growth driven by increasing market demand for reliable and power-efficient connectivity solutions.
  • Growth is supported by deep, strategic partnerships with hyperscalers and key customers.

Q1 Segment Performance:

• Product Sales Revenue: $217.1M [✅]; UP +279% YoY
• IP License Revenue: $6.0M [✅]; UP +151% YoY

Other Key Q1 Metrics:

• Adj. Operating Income: $96.2M [✅]; UP +4390% YoY
• Adj. Operating Expenses: $54.5M [✅]; UP +54% YoY
• R&D Expenses: $52.4M [✅]; UP +72% YoY
• Free Cash Flow: Not disclosed
• Effective Tax Rate: 2.0% (vs. 6.9% YoY)

CEO Commentary:

• Bill Brennan: “During the first quarter of fiscal 2026, Credo continued a strong growth trajectory. First quarter revenue increased 31% sequentially, and 274% year over year, to $223.1 million. The Company’s growth has been driven by deep, strategic partnerships with hyperscalers and key customers. Given increasing market demand for reliable and power-efficient connectivity solutions, we expect continued revenue growth and diversification in terms of customers, protocols and applications.”

Credo expects revenue at the midpoint of $235 million next quarter.

Wall Street expected $199 million, so analyst estimates across Wall Street are about to zoom north.

Credo shares are now up about 8%. While this was a very impressive earnings from the company, the stock has been rallying headed into earnings which limits the size of the reaction to an outstanding report.

EPS of $.52 smashes Wall Street expectations of $.36.

Revenue of $223 million smashes Wall Street expectations of $190.6 million.

Shares now up 10%.

The stock initially pops 6%. We’ll continue posting analysis.

The moment their earnings hits newswires we’ll begin posting analysis.

24/7 Wall St.’s AI Investor Podcast recommended Credo last September 27th. Since that call, the stock is up a remarkable 347%. On our next episode we’ll be covering Credo’s earnings. So make sure to subscribe to the AI Investor Podcast in your favorite podcasting app. We’ve dropped a link to our latest episode in Spotify below.

You can also watch this embedded clip of our first recommendation of Credo from last September from 24/7’s YouTube channel while you wait for earnings.