Live: Credo Technology (CRDO) Q2 Earnings Coverage

Credo will be hosting its earnings call at 5 p.m. ET today.

As you can see from the live chart at the top of the article, the stock went absolutely vertical after reporting earnings. The key reasons for that are:

• Revenue last quarter smashed expectations, hitting about $268 million (above Wall Street consensus of ~$235 million).
• EPS of $.67 topped Wall Street expectations of $.50.
• And most importantly, guidance was massive. Credo is forecasting $340 million in revenue at the midpoint next quarter. Wall Street was expecting $248 million.

Next up is the company’s earnings call. Here are a few areas to watch for:

• Commentary on customer diversification (with such a massive beat, we’re expecting that situation will continue to improve).
• Any updated guidance on optics growth this year.
• And further details on the growth of new product categories. The more Credo is seen as a broad interconnect company that’s seeing momentum beyond AECs, the higher valuation the company could see from Wall Street.

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In each episode, we review recent news in the AI space and provide new recommendations and investing ideas in the AI space. One of our first recommendations in the podcast was Credo, which is now up 18% after hours and more than 600% since we first recommended the stock in September 2024! 

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We’ve already posted the commentary from Credo CEO Bill Brennan, but it’s worth highlighting once again:

“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 reect the continued build-out of the world’s largest AI training and inference clusters. Looking forward, the combination of continued growth in our core AEC and IC franchises, plus the upcoming ramps of our recently announced ZeroFlap Optics, ALCs, and OmniConnect gearbox solutions, gives us an outlook with strong revenue growth and profitability through fiscal 2026 and beyond.”

We’ll see what commentary the company provides on its earnings call about these growth drives that extend Credo beyond its bread-and-butter AEC business.

If you’re wondering why Credo is now up 12% after hours, the key is less what they reported last quarter (which was very good) and more how fantastic next quarter’s guidance is. 

Wall Street had expected revenues of $247.6 million in FQ3 2026. Credo issued revenue guidance with a midpoint of $340 million. 

That is absolutely blowout guidance and shows that even after Credo’s massive run up the past 24 months, the stock’s growth is still underappreciated by Wall Street.

Here are the key figures from Credo Technology’s (Nasdaq: CRDO) Q2 earnings release:

CRDO | Credo Technology Group Q2’26 Earnings Highlights:

• Adj. EPS: $0.67 (Est. $0.50)
• Revenue: $268.0M; [UP] +272.1% YoY
• Adj. Gross Margin: 67.7%
• Net Income: $82.6M
• Ending Cash and Short-term Investments: $813.6M

Q2’26 Outlook:

• Revenue: $335.0M – $345.0M
  • Expectations are driven by the continued growth in core AEC and IC franchises, along with the upcoming ramps of new products such as ZeroFlap Optics, ALCs, and OmniConnect gearbox solutions.
  • Management anticipates strong revenue growth and profitability through fiscal 2026 and beyond.

Q2 Segment Performance:

• Product Sales Revenue: $261.3M
• IP License Revenue: $6.7M

Other Key Q2 Metrics:

• Adj. Operating Income: $124.1M
• Adj. Operating Expenses: $57.3M
• R&D Expenses: $57.9M
• GAAP Gross Margin: 67.5%
• Non-GAAP Gross Margin: 67.7%
• GAAP Operating Income: $78.8M
• GAAP Operating Expenses: $102.3M
• GAAP Net Income: $82.6M
• GAAP Diluted Net Income per Share: $0.44

CEO Commentary:

• Bill Brennan: “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. Looking forward, the combination of continued growth in our core AEC and IC franchises, plus the upcoming ramps of our recently announced ZeroFlap Optics, ALCs, and OmniConnect gearbox solutions, gives us an outlook with strong revenue growth and profitability through fiscal 2026 and beyond.”

EPS of $.67 beats Wall Street expectations of $.50.

Revenue of $268.03 million exceeds estimates of ~$235 million.

A very solid beat for Credo.

Credo just reported and shares are up 10% immedaitely – more updates to come. 

Shares of Credo dove into the close, falling 3.7%. However, we didn’t see any company specific news to cause this.

Credo is expected to report earnings any moment.

If you just landed on this live blog, we expect Credo earnings to hit at about 4:05 p.m. ET. Once they arrive, we’ll begin posting updates immediately.

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The largest winner we’ve recommended so far has been Credo, which is up 526% since we first recommended it on September 27, 2024.

Credo has notched fantastic gains as revenue accelerated throughout calendar 2025. It’s expected that the company will deliver sales of more than $960 million during its current Fiscal year. That’s up from $437 million the prior year.

As we noted earlier, some key topics we’ll be looking for when Credo reports include:

• Updates on customer diversification: Credo sank earlier this year after it announced a quarter when revenues got too concentrated in Amazon. Since then, shares have skyrocketed as the company expanded its business with other hyperscalers.
• Optical business momentum is another key area to watch as the space is red-hot and Credo is making strong inroads.

We expect Credo to report shortly after the bell (at about 4:05 p.m. ET) and will begin issuing analysis the moment earnings go live.

Credo has surged 30% over the past five days as investors lean into the company’s strengthening position at the center of AI-infrastructure buildouts. Last quarter’s call underscored why sentiment is accelerating. Management highlighted record revenue, a 274% year-over-year increase, and expanding engagements across hyperscalers, including meaningful ramps from a fourth customer and a fifth now through qualification.

Credo also emphasized that AEC adoption is broadening from intra-rack to rack-to-rack designs, where reliability advantages can be “up to 1,000x” better than optical. With optical DSP and PCIe retimer roadmaps advancing, the market is pricing in multi-year growth visibility.