NASDAQ$CRDO

Credo Technology Group Holding Ltd · Q2 2026 earnings

Q2 2026 earnings · · After market close · Investor relations

Briefing

Credo reported strong financial performance in Q2 FY2026 with record revenue and profitability.

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.

Headline financials

Total Revenue

$268M

Previous: $72M+272.1%
EPS

$0.44

Previous: -$0.03+1566.7%
GAAP Gross Margin

67.5%

Previous: 63.2%+6.8%
Non-GAAP Gross Margin

67.7%

Previous: 63.6%+6.4%
Capital Expenditures

-$26M

Previous: -$27.8M+6.5%
Free Cash Flow

$89.8M

Previous: -$24.8M+462.7%
Net Income

$82.6M

Previous: -$4.23M+2055.9%
Operating Income

$78.8M

Previous: -$8.41M+1037.3%
Gross Profit

$181M

Previous: $45.5M+297.8%

Revenue & EPS history

Credo · Revenue · Quarterly

$268M

Q2 2026+272.1%vs Q2 2025
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Credo expects continued revenue growth and profitability, driven by momentum in AI and connectivity markets.

Tailwinds

  • 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.

Headwinds

  • 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.
  • High expectations priced in may add pressure for consistent outperformance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 17 quarterly earnings reports · overlaid with Q2 2026

Historical avgQ2 2026

+3.8%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+0.1%

Avg return

30 days after

43%

9 / 21 earnings

Positive

+44.4%

Q2 2025

Best reaction

-15.7%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-2.4%-3.8%-11.2%
Q2 2026+8.7%+2.9%-15.9%
Q1 2026+7.3%+19.4%+15.3%
Q4 2025+14.7%+16.5%+49.4%
Q3 2025-14.0%-27.4%-38.7%
Q2 2025+44.4%+51.6%+37.3%
Q1 2025-15.7%-23.3%+3.0%
Q4 2024+23.9%+21.5%+54.1%
Q3 2024-0.6%+0.7%-5.0%
Q2 2024-3.3%+3.6%+5.1%
Q1 2024-2.6%-1.5%-7.5%
Q4 2023+20.9%+16.8%+26.8%
Q3 2023-3.3%-4.3%-11.2%
Q2 2023+4.4%+6.9%-4.2%
Q1 2023-8.5%-9.0%-22.4%
Q2 2022-7.2%-12.4%-12.8%
Q4 2022+26.5%+24.5%+10.4%
Q3 2021-5.7%-13.0%-18.2%
Q1 2022-5.7%-13.0%-18.2%
Q4 2021-5.7%-13.0%-18.2%
Q3 2022+2.7%-13.1%-14.6%
Q2 2021
Q1 2021

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