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 ...

Credo Technology Group (NasdaqGS:CRDO) Q2 2026 Earnings Call December 01, 2025 05:00 PM ET Company ParticipantsThomas O'Malley - Equity Research DirectorDan Fleming - CFODan O'Neil - VP, Treasurer, Head and Investor RelationsJoseph Cardoso - VP and Equity ResearchQuinn Bolton - MD and Equity ResearchKarl Ackerman - MD, Semiconductors, Networking Hardware and Equity ResearchBill Brennan - President and CEOSuji Desilva - MD and Senior ResearchConference Call ParticipantsJay Rakesh - AnalystSebastian Nagy - An ...

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].

Credo Technology Group Holding Ltd. (NASDAQ:CRDO) shares soared after the company released its second-quarter earnings report after Monday's closing bell, beating estimates on the top and bottom lines.Here's a look at the details in the report. CRDO stock is moving. Watch the price action here.The Details: Credo reported quarterly adjusted earnings of 67 cents per share, which beat the analyst estimate of 49 cents by 36.18%.Quarterly revenue came in at $268.03 million, which beat the consensus estimate of $ ...

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].

We recently published 10 Stocks Racking Up Big Gains. Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is one of the top performers of last week. Credo Technology extended its winning streak for a fourth straight session on Friday, adding 8.29 percent to close at $177.60 apiece as investors positioned portfolios ahead of the results of its earnings performance next week. According to a notification to investors, Credo Technology Group Holding Ltd. (NASDAQ:CRDO) would release its financial and operating ...

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]

With U.S. stock futures trading lower this morning on Monday, some of the stocks that may grab investor focus today are as follows:Wall Street expects MongoDB Inc. (NASDAQ:MDB) to report quarterly earnings at 80 cents per share on revenue of $591.52 million after the closing bell, according to data from Benzinga Pro. MongoDB shares rose 1.9% to close at $332.37 on Friday.Analysts are expecting Vestis Corp. (NYSE:VSTS) to post quarterly earnings at 6 cents per share on revenue of $678.30 million for the late ...

Core Insights - Credo Technology Group Holding Ltd (CRDO) is set to report its second-quarter fiscal 2026 results on December 1, 2025, with a consensus estimate for earnings at 49 cents, indicating a 600% year-over-year increase, and total revenues expected at $235.2 million, reflecting a 226.6% rise [1][2] Financial Performance - For the fiscal second quarter, CRDO anticipates revenues between $230 million and $240 million, which represents a 5% quarter-over-quarter increase at the midpoint [2] - The company has consistently beaten earnings estimates in the past four quarters, with an average earnings surprise of 33.5% [3] Growth Drivers - The anticipated strong performance in the second quarter is attributed to high demand for active electrical cables (AEC) and optical products, along with increased engagement with hyperscalers [5][7] - CRDO's technology supports connectivity performance of up to 1.6 Tbps, which is crucial for the growing AI infrastructure investments from hyperscalers and data centers [6] - The company reported a fiscal first-quarter revenue of $223.1 million, marking a 31% sequential increase and a 274% year-over-year growth, driven by a 279% increase in product revenue [6] Strategic Partnerships - Strategic partnerships with hyperscalers are fueling CRDO's growth, supported by a comprehensive product development cycle that includes SerDes, IC design, and system-level engineering [7][8] - The optical segment is performing well, with expectations to double revenues this fiscal year, focusing on advanced digital signal processors (DSPs) [9] Market Position - CRDO shares have surged 258.9% over the past year, outperforming the Electronics - Semiconductors industry and the S&P 500 [13] - The company trades at a premium valuation, with a forward price/earnings ratio of 96.6, significantly higher than the industry average of 39.22 [15][18] Risks and Challenges - The company faces risks from heavy reliance on a few customers, with the top three customers accounting for over 10% of revenue, which could lead to significant revenue impacts if any major client reduces orders [12] - Competition from major semiconductor companies like Broadcom and Marvell poses additional challenges, along with macroeconomic pressures such as tariff shifts [11][20]

Core Viewpoint - Credo Technology (CRDO) is expected to report strong second-quarter earnings, driven by high demand for its connectivity solutions in the AI sector, with the stock experiencing significant growth this year [1][4][5]. Company Performance - CRDO stock has increased by 33.7% over the past three months and over 138% year-to-date [1]. - Analysts maintain a "Strong Buy" rating for Credo, indicating confidence in the company's growth potential [2]. - The stock's 14-day Relative Strength Index suggests there may still be room for further gains, especially if upcoming earnings exceed expectations [2]. Earnings Expectations - Management has guided Q2 revenue to be between $230 million and $240 million, a substantial increase from $72 million a year earlier [5]. - The anticipated revenue growth is attributed to the rising adoption of Credo's power-efficient, high-speed connectivity products by hyperscale cloud operators and data center customers [5]. Market Dynamics - Credo is positioned to benefit from a growing share of the AI and cloud infrastructure market, with strong demand fundamentals and an expanding customer base [6]. - The company expects to diversify its customer base as more hyperscalers and data center partners increase their purchases [6]. Options Market Sentiment - Options traders are predicting an 18.1% price swing in either direction following the earnings release, indicating expectations of significant volatility [3].