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- **Revenue Surge**: Q3 revenue $407M (+52% QoQ, +200% YoY), non-GAAP net income $209M, driven by AEC and IC adoption.
- **Product Breakthroughs**: ZF Optics production ramp Q1 '27, ALCs targeting 30m reach, OmniConnect gearboxes for DDR/HBM interconnects.
- **Strategic Expansion**: TAM expands into mid-reach optical, die-to-die connectivity, with FY '27 growth >50% YoY.
- **Financial Strength**: 68.6% gross margin, $1.3B cash, Q4 guidance $425-435M, '27 growth >50% YoY.
- **Market Leadership**: AECs dominate scale-out AI at 100G/200G, ZF optics address reliability gap in optical.

**【CEO Summary Section】**
- **Record Revenue Growth**: Q3 revenue of $407 million, up 52% sequentially and 200% year-over-year, driven by AEC and IC product adoption. Non-GAAP net income reached $208.8 million, a 63% sequential increase.
- **Product Momentum**: AECs (ZeroFlap, Blue Heron) dominate scale-out AI networks, with 100G/200G deployments. ZF Optics production ramp begins Q1 '27, targeting hyperscalers and Neoclouds. ALCs and OmniConnect gearboxes (e.g., Weaver) set to launch in '27/'28.
- **Strategic Expansion**: Total addressable market (TAM) expands via ZeroFlap optics (mid-reach optical), ALCs (30m reach), and OmniConnect (die-to-die connectivity). Q4 '26 revenue guidance: $425-435 million, '27 growth >50% YoY.
- **Operational Excellence**: 68.6% non-GAAP gross margin, up 920bps sequentially. Strong supply chain execution supports 6x revenue growth (2024-2026).

**【CFO Financial Commentary】**
- **Q3 Financials**: GAAP revenue $407 million, non-GAAP gross margin 68.6%, operating margin 49.6%. Cash flow from operations $166.2 million, ending cash $1.3 billion.
- **Q4 Guidance**: Revenue $425-435 million, non-GAAP gross margin 64-66%, operating expenses $76-80 million. FY '27 expects mid-single-digit sequential growth, >50% YoY.
- **Leverage**: Operating expenses grew 35% sequentially vs. 52% revenue growth, driving margin expansion.

**【Q&A Highlights】**
- **ZF Optics Ramp**: 3+ customers in qualification, production ramp Q1 '27. TAM expansion into mid-reach optical with 30m ALCs (Q2 '28). 
- **AEC vs Optical**: AECs (copper) dominate scale-out AI at 100G/200G, while ZF optics (reliable optics) address mid-reach. CPO adoption limited by reliability challenges.
- **New Products**: Blue Heron DSP for 200G AECs, OmniConnect gearboxes for DDR/HBM interconnects. Chimera acquisition adds Layer 2 protocol IP capabilities.
- **Supply Chain**: Wafer and packaging supply secure for '27. Memory constraints may benefit OmniConnect's DDR use case.
- **Margins**: 68.6% gross margin in Q3, guided down to 64-66% in Q4 due to product mix and conservatism.

Credo Technology Group Holding Ltd (CRDO) Q3 2026 Earnings Call Transcript

- **Revenue Record**: Q2 $268M (272% YoY), driven by AECs and new products like Zero Flap optics and ALCs.
- **Customer Expansion**: 4 hyperscalers >10% of revenue, fifth entering ramp. ALC TAM expected to double AECs.
- **Innovation Lead**: 112G VSR SerDes enables 10x I/O density, with first gearbox addressing 2TB memory for XPUs.
- **Financial Strength**: 67.7% gross margin, $128M net income. FY26 net income to quadruple YoY.
- **Growth Path**: FY26 revenue >$1B, with mid-single-digit QoQ growth in FY27 and TAM >$10B.

**【CEO Summary Section】**
- **Record Revenue Growth**: Q2 revenue of $268 million, up 272% YoY and 20% QoQ, driven by AEC (Active Electrical Cables) and new product line expansions.
- **AEC Dominance**: 4 hyperscalers each contributed >10% of revenue, with a fifth customer entering initial ramp. AECs now displacing optical rack-to-rack connections up to 7 meters.
- **New Growth Pillars**: Introduced Zero Flap optics (ZF), Active LED Cables (ALCs), and OmniConnect gearboxes, targeting multibillion-dollar TAMs. ALCs expected to be double the AEC TAM long-term.
- **Strategic Innovations**: 112G VSR SerDes enables 10x I/O density, with first gearbox (Weaver) addressing memory-to-compute connectivity for XPUs. Initial customer plans for 2TB memory capacity in inference workloads.
- **TAM Expansion**: Total addressable market exceeds $10 billion, up from $3 billion 18 months ago, driven by 5 product lines (AECs, ICs, ZF, ALCs, OmniConnect).

**【CFO Financial Commentary】**
- **Profitability**: Non-GAAP gross margin 67.7%, up 110bps QoQ. Non-GAAP net income $128 million, 30% QoQ growth. Operating margin 46.3%, up 319bps QoQ.
- **Q3 Guidance**: Revenue $335-345 million (27% QoQ growth). Gross margin 64-66%, OpEx $68-72 million. FY26 non-GAAP net margin ~45%, with >4x YoY net income growth.
- **Cash Position**: $813.6 million in cash, up $333.9 million QoQ from ATM offering. Free cash flow $38.5 million, despite $23.2 million CapEx for production MACsec.

**【Q&A Highlights】**
- **Customer Diversification**: 4 hyperscalers >10% of revenue, with fifth customer entering initial ramp. Expect 3-4 >10% customers in FY26.
- **ALC Ramp**: First ALC samples to customers in FY27, with revenue ramp in FY28. ZF optics trials with lead hyperscaler, sampling second US hyperscaler in FY26.
- **Supply Chain**: No AEC supply constraints; focus on wafer capacity for ICs. Credo's older-node strategy (e.g., 12nm) mitigates foundry bottlenecks.
- **Competitive Strategy**: System-level solutions (e.g., ZF optics with switch-level SDK) differentiate from commodity transceivers. Gross margin target 63-65% long-term.
- **PCIe Growth**: PCIe Gen6 retimers on track for FY27 production, with Gen7 128Gbps solutions in development. PCIe revenue to complement AEC growth in scale-up networks.

Credo Technology Group Holding Ltd (CRDO) Q2 2026 Earnings Call Transcript

- **Revenue Surge**: Q1 2026 revenue $223M (+274% YoY), driven by AECs and hyperscalers.
- **Profitability**: 67.6% gross margin, $98M net income, 43.1% operating margin.
- **AEC Dominance**: 3 hyperscalers >10% revenue, 4th hyperscaler contributing in Q1.
- **Strategic Expansion**: Optical DSPs (1.6T solutions) and PCIe retimers for scale-up networks.
- **Growth Outlook**: FY26 guidance for ~120% YoY revenue growth, 40%+ net margin.
- **Cash Strength**: $479M cash, $51M free cash flow.

**【CEO Summary Section】**
- Q1 2026 revenue: $223 million (31% sequential growth, 274% YoY), driven by AECs and hyperscaler partnerships.
- Non-GAAP gross margin: 67.6%, with $100 million net income.
- AEC adoption accelerating: 3 hyperscalers >10% of revenue, 4th hyperscaler contributing in Q1.
- Strategic expansion into optical DSPs (1.6T solutions) and PCIe retimers for scale-up networks.
- Rack-to-rack AECs gaining traction due to 1,000x reliability advantage over optical.

**【CFO Financial Commentary】**
- Q1 product revenue: $217.1 million (279% YoY), AECs growing double digits sequentially.
- Non-GAAP operating margin: 43.1%, up 635bps QoQ, driven by 31% revenue growth vs. 5% OpEx increase.
- Q2 guidance: $230-240 million (5% sequential growth), gross margin 64-66%.
- FY26 outlook: ~120% YoY revenue growth, 40%+ non-GAAP net margin.
- Cash: $479.6 million, free cash flow $51.3 million.

**【Q&A Key Highlights】**
- **AEC Adoption**: 100Gbps AECs ramping across hyperscalers, with multiple programs per customer.
- **Market Cannibalization**: AECs replacing copper and optical in AI clusters, expanding TAM.
- **Optical Strategy**: 3nm process for 800G/1.6T DSPs, targeting power efficiency.
- **Customer Diversification**: 4 hyperscalers to >10% FY26, two new ramps in process.
- **PCIe Growth**: Gen6/Gen7 retimers gaining traction with GPU manufacturers.
- **Supply Constraints**: Optical supply delays unlikely to impact AEC adoption.
- **Row-Scale Networking**: AECs preferred for reliability in disaggregated architectures.


Credo Technology Group Holding Ltd (CRDO) Q1 2026 Earnings Call Transcript

- **Revenue Growth Record**: Q4 2025 revenue $170M (+26% QoQ, +180% YoY); FY25 total $437M (+126% YoY). 
- **Profitability Leap**: Q4 non-GAAP net margin 38.4%, FY25 EPS $0.70 (+$0.62 YoY). 
- **AEC Dominance**: 3 hyperscalers >10% Q4 revenue; PCIe Gen6 AECs for AI scale-up. 
- **Optical Breakthrough**: 800G transceiver win, 100G per lane DSPs at 9W power efficiency. 
- **FY26 Outlook**: >$800M revenue (+85% YoY), 40% net margin target. 
- **Risk Management**: Tariff-neutral supply chain, <12-month AEC cable lead times. 


**【CEO Summary Section】**
- Q4 2025 revenue: $170 million (26% sequential growth, 180% YoY growth). Full FY25 revenue: $437 million (126% YoY growth). 
- Non-GAAP gross margin: 67.4% in Q4, 65% for FY25. 
- AEC revenue growth driven by 3 hyperscalers (>10% each of Q4 revenue). PCIe Gen6 AECs demonstrated at GTC for AI scale-up networks. 
- Optical business momentum: 800G transceiver win with U.S. hyperscaler, 100G per lane DSPs on 5nm process achieving 9W power efficiency. 
- FY26 outlook: >$800 million revenue (85%+ YoY growth), non-GAAP net margin approaching 40%. 

**【CFO Financial Commentary】**
- Q4 non-GAAP net income: $65.3 million (38.4% net margin). FY25 non-GAAP EPS: $0.70 (up $0.62 YoY). 
- Q1 2026 guidance: $185-195 million revenue (12% sequential growth), 64-66% gross margin. 
- Cash flow: $57.8 million in Q4, ending cash: $431.3 million. 
- CapEx outlook: ~$100 million for FY26 (double FY25 levels). 
- Operating expenses: $52 million in Q4 (19% sequential growth), <50% YoY growth rate vs. revenue in FY26. 

**【Key Q&A Highlights】**
- Customer diversification: 2 new hyperscalers expected to ramp in H2 2026, maintaining 3-4 >10% customers. 
- Gross margin dynamics: Scale benefits offset mix headwinds; FY25 product GM up 1,289 bps YoY. 
- Tariff risk: Minimal impact; production flexibility across geographies. 
- Optical DSP wins: 800G LRO solution at 9W power, 200G per lane DSPs on 3nm process. 
- Supply chain: AEC cable assembly lead times <12 months; silicon fab capacity secured. 
- Retimer growth: PCIe Gen6 Retimer family compliant with PCIe 2.0 spec, targeting calendar 2026 production. 
- IP business: <5% of revenue, strategic enabler for system-level solutions. 


Credo Technology Group Holding Ltd (CRDO) Q4 2025 Earnings Call Transcript

- **Revenue Surge**: Q3 revenue up 154% YoY to $135M, driven by hyperscale AI cluster deployments
- **Gross Margin Expansion**: 63.8% non-GAAP gross margin, scale benefits driving 62.4% product margin
- **AEC Leadership**: 3 hyperscalers in volume, 2 in qualification; AECs replacing optics for 7m rack-to-rack connections
- **PCIe Breakthrough**: Gen6 AECs for AI scale-up, first PCIe retimer platform commitment
- **FY26 Outlook**: >50% revenue growth, operating margin expansion
- **Customer Diversification**: 3-4 customers >10% of revenue by FY26, expanding into PCIe and optical markets

**【CEO Summary Section】**
- Q3 revenue reached $135 million, up 87% sequentially and 154% year-over-year, driven by hyperscale customer adoption of AECs (Active Electrical Cables) for AI clusters.
- Non-GAAP gross margin was 63.8%, with product gross margin (excluding engineering services) at 62.4%, reflecting scale benefits.
- Key growth drivers include: 
  1. **AEC Expansion**: 3 hyperscalers in volume production, 2 in qualification for FY26; AECs replacing optics for up to 7m rack-to-rack connections. 
  2. **PCIe Innovation**: Gen6 64G PAM-4 AECs for AI scale-up networks; PCIe retimer achieved Gen5 compliance, with first platform commitment from AI server ODM.
  3. **Optical Solutions**: 200G per lane DSPs on 3nm process; partnerships with >10 transceiver vendors for hyperscale deployments.
- FY26 outlook: >50% revenue growth YoY, operating expenses to grow at half the rate of revenue, enabling margin expansion.

**【CFO Financial Commentary】**
- Q3 non-GAAP net income: $45.4 million (33.6% net margin)
- Q4 guidance: 
  - Revenue: $155-165 million (midpoint +19% QoQ)
  - Gross margin: 63-65%
  - OpEx: $50-52 million
- Cash position: $379.2 million, down $3.7 million QoQ due to working capital build for production ramp.
- Inventory: $53.2 million (+$16.9 million QoQ)
- FY26 targets: >50% revenue growth, operating margin expansion through leverage.

**【Q&A Highlights】**
1. **Customer Concentration**: 
  - Q3: 86% of revenue from largest customer
  - FY26: Expect 3-4 customers >10% of revenue (3 hyperscalers in production, 2 in qualification)
  - Diversification strategy: PCIe retimers (TAM $1B+ by 2027), optical DSPs, LRO solutions
2. **PCIe Strategy**: 
  - Gen6 AECs for rack-scale AI clusters; first production revenue in 2026
  - PCIe retimer compliance with Gen5, targeting scale-up networks
3. **Market Trends**: 
  - Inference growth driving connectivity needs
  - AEC adoption expanding from scale-out to scale-up networks
  - Optical solutions (1.6T ports) complementing AECs for reliability and efficiency

Actual	0.03	0.02	0.03	0.02	0.05	-0.04	-0.03	0.01	0.04	0.07	0.04	0.07	0.25	0.35	0.52	0.67	1.07
Forecast	-0.0125	0.0038	0.03	0.0313	0.0389	-0.0389	-0.0311	-0.003	0.0299	0.0518	0.0395	0.0522	0.1829	0.2738	0.3613	0.4918	0.9116
Surprise	+340.00%	+426.32%	0.00%	-36.10%	+28.53%	-2.83%	+3.54%	+433.33%	+33.78%	+35.14%	+1.27%	+34.10%	+36.69%	+27.83%	+43.92%	+36.23%	+17.38%

CRDO

CRDO fundamentals

CRDO Q3 2026 Earnings

Earnings Call

You can ask Aime

CRDO

CRDO fundamentals

CRDO Q3 2026 Earnings

Earnings Call

CRDO Earnings Call Summary for Q3/20265:00 PM on Mar 2, 2026

CRDO Earnings Call Summary for Q2/20265:00 PM on Dec 1, 2025

CRDO Earnings Call Summary for Q1/20265:00 PM on Sep 3, 2025

CRDO Earnings Call Summary for Q4/20255:00 PM on Jun 2, 2025

CRDO Earnings Call Summary for Q3/20255:00 PM on Mar 4, 2025

You can ask Aime