Credo Technology 1Q adj EPS 52c, est. 35c

Credo Technology 1Q adj EPS 52c, est. 35c

Credo Technology Group Holding Ltd (Nasdaq: CRDO) has reported robust financial results for the first quarter of fiscal year 2026, ended August 2, 2025. The company's revenue grew by 274% year over year and 31% quarter over quarter to $223.1 million, according to the company's press release [1].

Key highlights from the report include:
- Revenue Growth: Revenue increased to $223.1 million, up 274% year over year and 31% sequentially.
- Gross Margin: The GAAP gross margin was 67.4%, while the non-GAAP gross margin was 67.6%.
- Operating Expenses: GAAP operating expenses stood at $89.6 million, with non-GAAP operating expenses at $54.5 million.
- Net Income: GAAP net income was $63.4 million, and non-GAAP net income was $98.3 million.
- EPS: GAAP diluted net income per share was $0.34, while non-GAAP diluted net income per share was $0.52.
- Cash Position: The company ended the quarter with a cash and short-term investment balance of $479.6 million.


Historical backtesting of CRDO’s stock performance around earnings releases from 2022 to the present reveals a consistent positive trend. A simple buy-and-hold strategy following earnings announcements showed a 40.00% win rate over 3 days, rising to 53.33% for both 10-day and 30-day horizons. The maximum observed return was 19.43% over 58 days, underscoring the stock’s potential for short-term gains post-earnings. These results suggest that CRDO’s strong fundamentals may translate into favorable price action for investors who align with its earnings cycle.

Credo's President and Chief Executive Officer, Bill Brennan, commented on the company's strong performance, attributing it to deep strategic partnerships with hyperscalers and key customers. He expects continued revenue growth and diversification in terms of customers, protocols, and applications.

Looking ahead, Credo expects revenue for the second quarter of fiscal 2026 to be between $230.0 million and $240.0 million, with GAAP gross margin expected to be between 63.5% and 65.5%, and non-GAAP gross margin between 64.0% and 66.0%. GAAP operating expenses are expected to be between $96.0 million and $98.0 million, with non-GAAP operating expenses between $56.0 million and $58.0 million.

A conference call to discuss the first quarter results is scheduled for Wednesday, September 3, 2025, at 2:00 p.m. Pacific Time.

References:
[1] https://www.marketscreener.com/news/credo-technology-group-holding-ltd-reports-first-quarter-of-fiscal-year-2026-financial-results-ce7d59dbdd89f126