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Credo Technology Group Holding Ltd, a leader in secure, high-speed connectivity solutions, announced robust financial results for the first quarter of fiscal year 2026, ended August 2, 2025. With a 274% year-over-year revenue increase, Credo continues to capitalize on the growing demand for AI-driven applications and hyperscale networks.
Revenue: $223.1M, up 274% YoY and 31% QoQ.
Gross Margin: GAAP at 67.4%, non-GAAP at 67.6%.
Net Income: GAAP at $63.4M, non-GAAP at $98.3M.
Diluted EPS: GAAP at $0.34, non-GAAP at $0.52.
Cash Balance: $479.6M in cash and short-term investments.
Q2 Outlook: Revenue expected between $230M-$240M.
Credo reported a stellar Q1 2026 with revenue of $223.1 million, reflecting a 274% year-over-year increase and 31% sequential growth. The GAAP gross margin stood at 67.4%, with a non-GAAP gross margin of 67.6%. GAAP operating expenses were $89.6 million, while non-GAAP operating expenses were $54.5 million. The company achieved a GAAP net income of $63.4 million and a non-GAAP net income of $98.3 million, translating to GAAP diluted EPS of $0.34 and non-GAAP diluted EPS of $0.52. Credo’s cash position remains strong at $479.6 million.
Bill Brennan, President and CEO, commented, “During the first quarter of fiscal 2026, Credo continued a strong growth trajectory… The Company’s growth has been driven by deep, strategic partnerships with hyperscalers and key customers.” Credo’s focus on reliable, energy-efficient connectivity solutions for AI, cloud computing, and hyperscale networks has fueled its success. The company’s proprietary Serializer/Deserializer (SerDes) technology and portfolio, including Active Electrical Cables (AECs) and Optical DSPs, support port speeds up to 1.6Tb, meeting the needs of next-generation applications.
Looking ahead, Credo expects Q2 revenue to range between $230.0 million and $240.0 million, with GAAP gross margin between 63.5% and 65.5% and non-GAAP gross margin between 64.0% and 66.0%. GAAP operating expenses are projected at $96.0 million to $98.0 million, with non-GAAP operating expenses at $56.0 million to $58.0 million. This outlook reflects confidence in continued demand for Credo’s solutions.
Credo’s growth is underpinned by strategic partnerships with hyperscalers and key customers, driving diversification across customers, protocols, and applications. The company’s solutions are optimized for both optical and electrical applications, positioning it as a critical player in AI-driven infrastructure. Its recent settlement with Amphenol on active electrical cable patents further strengthens its market position.
Credo’s Q1 2026 results highlight its leadership in high-speed connectivity, with robust financial performance and a promising outlook. As demand for AI and hyperscale solutions grows, Credo is well-positioned to maintain its upward trajectory.
Credo Technology Group Holding Ltd (Nasdaq: CRDO) advances high-speed connectivity solutions that deliver optimized performance, reliability, energy efficiency, and security for AI-driven applications, cloud computing, and hyperscale networks. Its portfolio includes Active Electrical Cables, Integrated Circuits, Optical DSPs, SerDes Chiplets, and SerDes IP licensing, powered by proprietary SerDes technology supporting up to 1.6Tb port speeds.
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