Credo Technology Group Holding Stock Earnings Reports

Q2 fiscal 2026 highlights: Credo reported record revenue of $268M (up 20% sequentially, +272% YoY) with non-GAAP gross margin of 67.7% and non-GAAP net income of ~$128M — the strongest quarter in company history. Growth was driven by rapid expansion of Active Electrical Cables (AECs) with 4 hyperscalers each >10% of revenue and initial contributions from a fifth hyperscaler. Management emphasized strong demand for reliability- and power-efficient interconnects in very large AI clusters and an expanding product footprint. Credo announced three new strategic growth pillars — Zero Flap (ZF) optics, Active LED Cables (ALCs) via the Hyperlume team, and OmniConnect gearboxes (Weaver) targeting memory-to-compute connectivity — bringing the company to five high-growth product pillars (AECs, ICs, ZF optics, ALCs, OmniConnect) and a combined TAM management estimates >$10B. Near-term outlook: Q3 revenue guidance $335M–$345M (midpoint +27% sequential), Q3 non-GAAP gross margin 64%–66%, Q3 OpEx $68M–$72M. Management reiterated long-term gross margin expectations ~63%–65% and flagged higher OpEx to support engineering/product ramps (including Hyperlume integration). Supply commentary: Credo believes it can manage AEC/IC production ramp with existing partners and legacy-node foundry strategy (12nm workhorse) but noted industry-wide wafer capacity is becoming an increasingly discussed constraint. Product timelines: initial ZF optics sampling/trials this fiscal year with revenue anticipated in fiscal '27; ALC sampling in fiscal '27 with initial revenue fiscal '28; Weaver/OmniConnect initial revenue anticipated fiscal '28 with material scaling thereafter. Key investor takeaways: strong execution and leverage, meaningful near-term growth and margins, expanding TAM through system-level optical/copper solutions, some customer concentration (top customers sizeable but diversifying), and increased R&D/OpEx to fund multiple new product ramps.