Credo Technology 2026 Q2 Earnings Record Net Income Surges 2055.9%

Credo Technology (CRDO) delivered a historic Q2 2026 earnings report, surpassing all expectations with a 272% year-over-year revenue surge to $268.03 million and a net income turnaround of 2055.9% to $82.64 million. The company also raised Q3 guidance to $335–$345 million, far exceeding analyst forecasts, signaling sustained AI-driven demand.

Revenue

Credo’s Q2 revenue reached $268.03 million, a 272% year-over-year increase from $72.03 million in 2025 Q2. Regional contributions included Hong Kong ($117.89 million), the United States ($103.70 million), Mainland China ($23.63 million), and the Rest of the World ($22.80 million). This diversification underscores the company’s global market penetration, particularly in high-demand AI infrastructure and cloud connectivity sectors.

Earnings/Net Income

The company achieved profitability with EPS of $0.47, reversing a $0.03 loss in the prior year. Net income soared to $82.64 million, a 2055.9% increase from a $4.22 million loss. This marked a six-year high for Q2 net income, driven by robust demand for AI solutions and operational efficiency. The EPS performance reflects a remarkable turnaround, validating the company’s strategic focus on high-margin innovations.

Post-Earnings Price Action Review

The strategy of buying CRDO when revenues miss and holding for 30 days delivered a 1784.99% return, 1727.05% excess return, and a CAGR of 115.47%. With a maximum drawdown of 0.00% and a Sharpe ratio of 1.49, the approach demonstrated exceptional risk-adjusted performance.

Additional News

Credo’s recent licensing agreement with The Siemon Company for active electrical cable patents opened a high-margin revenue stream, validating its IP value. Concurrently, Rep. Robert Bresnahan’s congressional trade in CRDO surged 169% post-earnings, highlighting institutional confidence. The company also announced three new product lines—ZeroFlap optics, ALCs, and OmniConnect gearboxes—expanding its total addressable market to over $10 billion. These innovations position Credo as a leader in AI connectivity, addressing memory-to-compute challenges and hyperscale data center demands.