Core Insights - Credo Technology Group Holding Ltd. specializes in innovative and energy-efficient connectivity solutions for AI-driven applications, cloud computing, and hyperscale networks, with a stock price increase of 526% since September 2024 due to accelerated revenue growth throughout 2025 [1] Financial Performance - On December 1, 2025, Credo reported earnings per share of $0.67, exceeding the estimated $0.49 by over 36%, with revenue reaching approximately $268 million compared to the estimated $247.6 million, marking a substantial increase from $72 million in the same period last year [2] Valuation Metrics - The company's price-to-earnings (P/E) ratio is approximately 235.15, indicating a premium valuation, while the price-to-sales ratio is about 49.32 and the enterprise value to sales ratio is 48.98, reflecting the overall valuation including debt and cash [3] - Credo maintains a strong financial position with a low debt-to-equity ratio of 0.02, indicating minimal reliance on debt financing, and a current ratio of 7.41, demonstrating strong liquidity [3] - The company's earnings yield is 0.43%, providing a modest return on its earnings [3]

Core Insights - Credo Technology reported record financial performance for Q2 2026, significantly exceeding analysts' expectations [2][4][6] - The company's stock surged 15.1% in after-hours trading following the earnings report, despite a 3.6% decline during regular trading hours [2][3] Financial Performance - Credo's Q2 2026 revenue reached $268 million, representing a 272% year-over-year increase, surpassing the expected $235 million [4] - The diluted earnings per share (EPS) for Q2 2026 was $0.67, exceeding the anticipated $0.50 [6] - The company projects Q3 2026 revenue between $335 million and $345 million, indicating a potential year-over-year growth of 152% if the midpoint is achieved [7] Market Reaction - Following the earnings announcement, Credo's stock price increased to $197.24 in after-hours trading, reflecting strong investor confidence [3][8] - The market capitalization of Credo Technology is currently $31 billion, with a gross margin of 65.15% [5][6]

分组1 - Credo Technology Group Holding Ltd. reported quarterly earnings of $0.67 per share, exceeding the Zacks Consensus Estimate of $0.49 per share, and showing a significant increase from $0.07 per share a year ago, resulting in an earnings surprise of +36.73% [1] - The company achieved revenues of $268.03 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 13.95%, and compared to revenues of $72.03 million in the same quarter last year [2] - Credo Technology Group has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has increased approximately 164.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 16.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $248.11 million, and for the current fiscal year, it is $2.04 on revenues of $967.88 million [7] - The Zacks Industry Rank for Electronics - Semiconductors is currently in the bottom 41% of over 250 Zacks industries, indicating potential challenges for the sector [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 1, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ___________ Commission File Number: 001-41249 Credo Technology Group Holding Ltd (Exact name of registrant as specified in its charter) Cayman ...

Financial Data and Key Metrics Changes - The company reported record revenue of $268 million for Q2 2026, representing a 20% sequential growth and a 272% year-over-year increase [6][19] - Non-GAAP gross margin was 67.7%, with non-GAAP net income reaching approximately $128 million, marking the strongest quarterly results in the company's history [7][21] - Non-GAAP operating income was $124.1 million, with a non-GAAP operating margin of 46.3%, reflecting significant leverage from revenue growth [21][22] - Cash flow from operations was $61.7 million, and free cash flow was $38.5 million, with cash and equivalents at $813.6 million [22][23] Business Line Data and Key Metrics Changes - The Active Electrical Cables (AEC) product line continued to be the fastest-growing segment, with revenue driven by increasing customer diversity, including four hyperscalers contributing over 10% of total revenue [8][19] - The Integrated Circuit (IC) business, including retimers and optical DSPs, also showed strong performance, with expectations for significant growth driven by 50 gig and 100 gig per lane deployments [10][11] Market Data and Key Metrics Changes - The company is experiencing a significant expansion in the AEC market, with a fourth hyperscaler ramping up and a fifth starting to contribute initial revenue [9][19] - The total addressable market (TAM) for AECs is expected to grow as customers increase the scale and density of their networks [10][17] Company Strategy and Development Direction - The company is focused on expanding its product offerings with three new growth pillars: Zero-flap Optics, Active LED Cables (ALCs), and OmniConnect gearboxes, each representing multi-billion dollar market opportunities [12][15][16] - The strategy includes maintaining a vertically integrated supply chain to ensure control over the entire system solution, similar to the approach taken with AECs [70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth through fiscal 2026 and beyond, driven by the core AEC and IC businesses, as well as new product ramps [17][24] - The company anticipates revenue in Q3 2026 to be between $335 million and $345 million, reflecting a 27% sequential increase at the midpoint [24] Other Important Information - The company is well-capitalized with a cash buffer to invest in growth opportunities while managing operating expenses, which are expected to increase year-over-year by approximately 50% in fiscal 2026 [23][24] - The company is addressing potential supply constraints in the semiconductor market, particularly regarding wafer demand, but does not foresee issues with AEC production capacity [56][59] Q&A Session Summary Question: Expansion of the AEC market and ALC market potential - Management indicated that the ALC market could be double the size of the AEC TAM, driven by both unit growth and ASP increases [27][29] Question: Customer revenue contributions - The largest customer contributed 42% of revenue, followed by 24%, 16%, and 11% from the other hyperscalers, with management noting variability in customer ramping [34][35] Question: Focus on system-level products - The company is committed to expanding its portfolio at the system level, with both ALCs and ZF optics being key areas of focus [38][39] Question: Applications for AECs - AECs are currently used in front-end network connections, scale-out opportunities, and switch racks, with further penetration expected in scale-up networks [50][51] Question: Supply constraints and manufacturing strategy - Management does not foresee concerns regarding AEC production capacity but acknowledges potential discussions around wafer supply constraints in the broader market [56][59] Question: Future growth expectations - Management expects mid-single-digit sequential revenue growth through fiscal 2027, with a focus on maintaining operational efficiency [91][94]

Financial Data and Key Metrics Changes - The company reported record revenue of $268 million for Q2 2026, representing a 20% sequential growth and a 272% increase year over year [5][17]. - Non-GAAP gross margin was 67.7%, with non-GAAP net income reaching approximately $128 million, marking the strongest quarterly results in the company's history [5][19]. - Non-GAAP operating income was $124.1 million, reflecting a significant increase due to over 20% sequential top-line growth [19]. - Cash flow from operations was $61.7 million, with ending cash and equivalents of $813.6 million, an increase of $333.9 million from Q1 [20]. Business Line Data and Key Metrics Changes - The Active Electrical Cables (AEC) product line continued to be the fastest-growing segment, with revenue driven by increasing customer diversity, including four hyperscalers contributing over 10% of total revenue [6][17]. - The Integrated Circuit (IC) business, including retimers and optical DSPs, also showed strong performance, with significant growth expected in fiscal 2026 [9]. Market Data and Key Metrics Changes - The company noted that the AECs have become the de facto standard for inter-rack connectivity, displacing traditional optical connections [6][7]. - The total addressable market (TAM) for AECs and IC solutions is projected to exceed $10 billion, more than tripling from 18 months ago [15][16]. Company Strategy and Development Direction - The company is focused on expanding its product offerings with three new growth pillars: Zero-flap Optics, Active LED Cables (ALCs), and OmniConnect gearboxes, each representing multi-billion dollar market opportunities [11][12][13]. - The strategy emphasizes delivering high-reliability and power-efficient solutions tailored to the needs of AI training and inference clusters [5][6]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth through fiscal 2026 and beyond, driven by the ramp-up of new product categories and existing AEC and IC businesses [16]. - The company anticipates significant year-over-year growth from its top customers and expects to strengthen revenue diversification [21][22]. Other Important Information - The company is well-capitalized to invest in growth opportunities, with a substantial cash buffer and plans for continued innovation in connectivity solutions [20]. - The management highlighted the importance of reliability and power efficiency in their product offerings, which are critical for the evolving demands of AI infrastructure [30][31]. Q&A Session Summary Question: Expansion of the AEC market and ALC market potential - Management indicated that the ALC market could be double the AEC TAM, driven by both quantity and average selling price (ASP) increases [24]. Question: Customer revenue contributions - The largest customer contributed 42% of revenue, followed by others at 24%, 16%, and 11%, with expectations for continued growth and diversification [26][27]. Question: Focus on system-level products - The company is committed to expanding its portfolio at the system level, with a focus on delivering non-commodity solutions that exceed industry standards [28][29]. Question: AEC supply constraints - Management does not foresee concerns regarding AEC production capacity, citing a strong partnership with manufacturing providers [41][42]. Question: Transition to higher-speed connections - The company confirmed that it is in production with 25, 50, and 100 gig per lane solutions, with expectations for future transitions to 200 gig per lane [45][46]. Question: Licensing of AEC IP - The decision to license AEC IP reflects the company's established competitive position and the need to protect its innovations in a growing market [60].

Core Viewpoint - Credo Technology Group Holding Ltd. reported strong second-quarter earnings, surpassing analyst expectations on both earnings and revenue, leading to a significant increase in stock price [1][2]. Financial Performance - The company reported adjusted earnings of 67 cents per share, exceeding the analyst estimate of 49 cents by 36.18% [2]. - Quarterly revenue reached $268.03 million, surpassing the consensus estimate of $234.92 million and showing a substantial increase from $72.03 million in the same period last year [2][3]. - Year-over-year revenue growth was an extraordinary 272%, while sequential growth was 20%, marking the strongest quarterly results in the company's history [3]. Future Outlook - For the third quarter, Credo anticipates revenue between $335 million and $345 million, significantly higher than the analyst estimate of $247.04 million [4]. - Following the earnings report, Credo's stock price increased by 15.70%, reaching $197.99 in extended trading [4].

Core Insights - Credo Technology Group Holding Ltd reported a record revenue of $268.0 million for the second quarter of fiscal year 2026, marking a 20% increase sequentially and a remarkable 272% increase year-over-year, driven by the expansion of AI training and inference clusters [2][6]. Financial Highlights - Revenue of $268.0 million, up 20.2% quarter-over-quarter and 272.1% year-over-year [6]. - GAAP gross margin at 67.5% and non-GAAP gross margin at 67.7% [6]. - GAAP operating expenses totaled $102.3 million, while non-GAAP operating expenses were $57.3 million [6]. - GAAP net income reached $82.6 million, with non-GAAP net income at $127.8 million [6]. - GAAP diluted net income per share was $0.44, and non-GAAP diluted net income per share was $0.67 [6]. - Ending cash and short-term investments amounted to $813.6 million [6]. Future Outlook - Revenue is projected to be between $335.0 million and $345.0 million for the next quarter [7]. - Expected GAAP gross margin is between 63.8% and 65.8%, while non-GAAP gross margin is anticipated to be between 64.0% and 66.0% [7]. - GAAP operating expenses are expected to range from $116.0 million to $120.0 million, with non-GAAP operating expenses projected between $68.0 million and $72.0 million [7].

Group 1 - Credo Technology Group Holding Ltd. (NASDAQ:CRDO) has shown strong performance, with an 8.29% increase in stock price, closing at $177.60, as investors prepare for upcoming earnings results [1][3] - The company is set to release its financial and operating highlights for Q2 of fiscal year 2026 after market close on December 1, followed by a conference call to discuss the results [2] - Credo has provided growth guidance for Q2, expecting revenues between $230 million and $240 million, GAAP gross margin between 63.5% and 65.5%, and operating expenses of $96 million to $98 million [3] Group 2 - Credo Technology announced a licensing agreement with The Siemon Company regarding its patents for active electrical cable technology, although specific details were not disclosed due to non-disclosure agreements [4]

Core Insights - Credo Technology and Astera Labs are positioned as significant players in the AI data-center sector, with potential for substantial growth beyond Wall Street's expectations [1] Group 1: Company Performance - Credo Technology (CRDO) has seen an increase in stock price by 8.29%, indicating strong market confidence [1] - Astera Labs (ALAB) experienced a stock price rise of 2.17%, reflecting positive investor sentiment [1] - Both companies are experiencing explosive revenue growth and rising profitability, which positions them well to capitalize on increasing demand for AI infrastructure [1] Group 2: Market Trends - The demand for AI infrastructure is accelerating, which is expected to benefit both Credo Technology and Astera Labs significantly [1] - The long-term guidance provided by both companies suggests ambitious growth plans that align with the expanding AI market [1]