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Nov 01, 2025
Credo Q2 2026 Earnings Report
Credo reported strong financial performance in Q2 FY2026 with record revenue and profitability.
Key Takeaways
Credo achieved its best quarter ever, driven by AI infrastructure demand. Revenue rose over 270% YoY and profitability surged.
Revenue grew 272% YoY to $268 million, the highest in company history.
Net income reached $82.6 million, compared to a loss of $4.2 million a year ago.
Non-GAAP EPS came in at $0.67, highlighting strong profitability.
Gross margin remained high at 67.5% GAAP and 67.7% non-GAAP.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Credo expects continued revenue growth and profitability, driven by momentum in AI and connectivity markets.
Positive Outlook
- Revenue guidance for Q3 FY26 set between $335M and $345M.
- Non-GAAP gross margin expected between 64.0% and 66.0%.
- Strong growth in AEC and IC product lines anticipated.
- New product ramps in ZeroFlap Optics, ALCs, and OmniConnect expected to drive future results.
- Continued profitability focus with controlled operating expenses.
Challenges Ahead
- Operating expenses expected to increase to $116M–$120M GAAP.
- High share-based compensation expected at ~$48M.
- Macroeconomic uncertainty may affect customer spending.
- Potential risks in supply chain scaling as demand grows.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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