Credo Technology 2026 Q1 Earnings Net Income Surges 764.6%

Credo Technology (CRDO) delivered a stunning earnings performance in Q1 2026, returning to profitability with a record net income and surpassing expectations with a dramatic improvement from a net loss in the prior year. The company also provided bullish guidance for the upcoming quarter and fiscal year, underlining its strong position in the AI infrastructure market.

Credo Technology reported Q1 2026 earnings that significantly exceeded expectations, with a net income of $63.40 million, representing a 764.6% increase from a $-9.54 million loss in Q1 2025. The company’s revenue surged by 273.6% year-over-year to $223.07 million, highlighting robust demand for its AEC solutions and customer diversification. The results indicate a dramatic operational turnaround and strong market positioning.

Revenue
Credo Technology’s total revenue for Q1 2026 reached $223.07 million, a 273.6% increase compared to $59.71 million in the same period last year. This significant growth was driven by rising demand for the company’s AEC solutions, expansion of its customer base, and diversification across protocols.

Earnings/Net Income
Credo Technology returned to profitability with earnings per share (EPS) of $0.37 in Q1 2026, reversing a loss of $0.06 per share in Q1 2025, a 716.7% positive swing. The company achieved a record net income of $63.40 million for the quarter, representing a 764.6% increase from a net loss of $-9.54 million in the same period last year. This marked a new high for Q1 net income in six years.

Price Action
Following the earnings report, Credo Technology’s stock price exhibited mixed short-term performance. The stock edged down 2.90% during the latest trading day but surged 16.83% month-to-date, suggesting strong investor confidence in the company’s long-term growth prospects.

Post-Earnings Price Action Review
Credo Technology’s stock price showed a mixed response in the immediate aftermath of the earnings report. While the stock dipped 2.90% on the day of the report, it gained 9.18% during the subsequent week and 16.83% month-to-date. This volatility reflects investor optimism about the company’s strong earnings results and guidance for continued growth.

CEO Commentary
William Brennan, President, CEO & Chairman of Credo Technology, highlighted Q1 2026 as a record-breaking quarter, marked by $223 million in revenue driven by strong demand for AEC solutions. He emphasized the company’s leadership in AECs due to its system-level approach, including SerDes technology, IC design, and production. Brennan noted the expansion into PCIe AECs and optical solutions as strategic priorities, driven by GPU densification and the shift from passive copper to AECs for rack-to-rack applications. He expressed optimism about the company’s ability to address connectivity bottlenecks in AI infrastructure, with multiple waves of demand expected from scale-out and scale-up networks.

Guidance
Credo Technology provided bullish guidance for Q2 2026, forecasting revenue in the range of $230 million to $240 million, representing 5% sequential growth at the midpoint. Non-GAAP gross margin is projected between 64% and 66%, with non-GAAP operating expenses expected between $56 million and $58 million. The company expects sequential revenue growth in the mid-single digits for fiscal year 2026, leading to approximately 120% year-over-year growth. Non-GAAP net margin is anticipated to remain around 40%.

Additional News
Within three weeks of Credo Technology’s Q1 2026 earnings report, there were no significant mergers and acquisitions, CEO changes, or dividend/buyback announcements directly related to the company. However, broader market dynamics included rising U.S.-China trade tensions, regulatory scrutiny of tech companies, and ongoing geopolitical uncertainties affecting global markets. These factors underscore the importance of Credo Technology’s strategic expansion and operational discipline in maintaining its competitive edge.