Credo Technology 2026 Q2 Earnings Record Net Income Surges 2055.9%

Credo Technology (CRDO) delivered a historic fiscal 2026 Q2 performance, with revenue soaring 272.1% to $268.03 million and net income surging from a $4.22 million loss to $82.64 million. The company exceeded analyst expectations and raised full-year guidance, signaling robust growth momentum driven by AI infrastructure demand and strategic product expansions.

Revenue

Credo Technology’s total revenue for Q2 2026 reached $268.03 million, a 272.1% increase from $72.03 million in the same period a year prior. Hong Kong contributed the largest share at $117.89 million, followed by the United States at $103.70 million. Mainland China and the Rest of the World added $23.63 million and $22.80 million, respectively, reflecting strong global demand for its high-speed connectivity solutions.

Earnings/Net Income

The company returned to profitability with an EPS of $0.47, reversing a $0.03 loss in 2025 Q2. Net income of $82.64 million marked a 2055.9% improvement from a $4.22 million loss, establishing a six-year Q2 record. This turnaround underscores Credo’s operational efficiency and market share gains in AI-driven data center infrastructure.

Price Action

CRDO’s stock dropped 3.68% in the latest trading day but surged 24.92% in the most recent full week and rose 13.10% month-to-date, reflecting mixed short-term investor sentiment.

Post-Earnings Price Action Review

The strategy of buying CRDO when revenues miss and holding for 30 days yielded exceptional results, with a 1784.99% strategy return, 1727.05% excess return, and a CAGR of 115.47%. The strategy’s maximum drawdown of 0.00% and Sharpe ratio of 1.49 highlight its robust risk-adjusted performance and minimal downside risk.

CEO Commentary

CEO William Brennan highlighted record Q2 revenue of $268 million, driven by 20% sequential growth in AECs and ICs. He emphasized expansion into Zero Flap optics, ALCs, and OmniConnect gearboxes, positioning Credo to capitalize on multibillion-dollar markets. Brennan reiterated confidence in long-term revenue growth through fiscal 2026.

Guidance

Credo expects Q3 2026 revenue of $335–345 million (27% sequential growth at midpoint), non-GAAP gross margin of 64–66%, and operating expenses of $68–7 million.

Additional News

Credo announced a licensing agreement with The Siemon Company for active electrical cable technology patents, creating a new high-margin revenue stream. The deal validates Credo’s IP value and diversifies income beyond hardware sales. CEO William Brennan also outlined plans to scale Zero Flap optics and ALCs, targeting multibillion-dollar markets.

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Credo Technology (CRDO) reported Q2 2026 earnings with revenue of $268.03 million, a 272.1% year-over-year increase, and net income of $82.64 million, a 2055.9% improvement from a loss. The company exceeded analyst expectations and raised full-year guidance, driven by AI infrastructure demand and strategic product expansions.

[Revenue]

[Earnings/Net Income]

[Price Action]

[Post Earnings Price Action Review]

[CEO Commentary]

[Guidance]

[Additional News]