Core Insights - Credo Technology Group Holding Ltd (CRDO) reported first-quarter fiscal 2026 adjusted earnings per share (EPS) of 52 cents, exceeding the Zacks Consensus Estimate by 48.6% and significantly up from 4 cents in the prior-year quarter [1][8] - Revenues surged 273.6% year over year to $223.1 million, driven primarily by strong growth in the product business, and also surpassed the Zacks Consensus Estimate by 17.4% [1][8] Revenue and Growth - The product business sales increased 278.6% year over year to $217.1 million, while IP license sales rose 151.8% year over year to $6 million [3] - Each of the company's top three customers contributed over 10% to revenues, indicating a strong customer base with expectations for continued expansion [3][8] - The company anticipates sustained revenue growth due to strategic partnerships with hyperscalers and rising market demand for reliable, power-efficient connectivity solutions [2] Profitability and Expenses - Non-GAAP gross profit reached $150.7 million, compared to $37.6 million in the same period last year, with a non-GAAP gross margin expansion of 470 basis points to 67.6% [4] - Total non-GAAP operating expenses increased 54.1% year over year to $54.5 million, with research and development expenses surging 72.5% to $52.5 million [4][5] Cash Flow and Balance Sheet - As of August 2, 2025, CRDO had $479.6 million in cash and cash equivalents and short-term investments, up from $431.3 million as of May 3, 2025 [6] - The company generated cash flow from operating activities of $54.2 million in the first quarter, with free cash flow totaling $51.3 million [7] Future Outlook - For the second quarter of fiscal 2026, revenues are expected to range between $230 million and $240 million, with GAAP gross margin projected between 63.5% and 65.5% [9] - For fiscal 2026, the company anticipates mid-single-digit sequential revenue growth, resulting in approximately 120% year-over-year growth, with non-GAAP operating expenses expected to rise by less than 50% year over year [10] Stock Performance - CRDO shares have increased by 368.2% over the past year, significantly outperforming the Zacks Electronics-Semiconductors industry's growth of 46.8% [11]

Core Insights - Cirrus Logic Inc. reported first-quarter fiscal 2026 adjusted earnings per share (EPS) of $1.51, exceeding the Zacks Consensus Estimate by 41% and up from $1.12 in the prior-year quarter [1][10] - The company generated revenues of $407.3 million, reflecting a 9% year-over-year growth, driven by strong demand for its custom boosted audio amplifier and newly introduced 22-nanometer smart codec [2][10] - The long-term growth strategy focuses on maintaining leadership in smartphone audio, expanding high-performance mixed-signal solutions, and leveraging expertise to enter new markets [3] Revenue Performance - Revenue growth was primarily attributed to strong customer demand, although there was a sequential decline of 4% due to decreased smartphone shipment volumes [2] - The top line exceeded management's guidance of $330-$390 million and the consensus estimate of $364 million [2] Segment Analysis - The High-Performance Mixed-Signal segment contributed 41% to total revenues, growing 7.9% year over year to $167.2 million, while the Audio segment's sales increased 9.6% to $240 million, contributing 59% to total revenues [7] - The company is expanding into applications such as laptops, gaming, tablets, and AR/VR [6] Customer Concentration - The largest customer accounted for 86% of total revenues in the fiscal first quarter, indicating a high level of customer concentration [5] Margin and Expenses - Non-GAAP gross margin was 52.6%, up from 50.6% in the prior-year quarter, but down from 53.5% sequentially [11] - Non-GAAP operating expenses rose 1.2% year over year to $119.5 million, while non-GAAP operating income increased 33.3% year over year to $94.8 million [12] Cash Flow and Share Repurchase - The company ended the fiscal first quarter with cash and marketable securities of $614.8 million, up from $595.8 million [14] - Cirrus Logic repurchased almost 1 million shares worth $100 million during the reported quarter [15] Future Outlook - For fiscal Q2 2026, the company anticipates revenues between $510 million and $570 million, projecting a strong sequential uptick in customer demand, particularly in smartphones [16]