What guidance did Credo Technology's management provide for the next earnings period?

What is Credo Technology's gross profit margin?

Did Credo Technology beat or miss consensus estimates last quarter?

What were the key takeaways from Credo Technology’s earnings call?

What were the key takeaways from Credo Technology's earnings call?

What is the market's earnings forecast for Credo Technology next quarter?

What does Credo Technology do and what are its main business segments?

What is Credo Technology's latest dividend and current dividend yield?

- **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

CRDO

CRDO fundamentals

Earnings Call

You can ask Aime