Credo Technology Group Holding Ltd CRDO is scheduled to report second-quarter fiscal 2026 results on Monday, Dec.1, 2025, after the closing bell.
The Zacks Consensus Estimate for the bottom line for the to-be-reported quarter is pegged at 49 cents, suggesting a 600% year-over-year surge. The estimate has remained unchanged in the past 60 days. The consensus estimate for total revenues is pinned at $235.2 million, implying a 226.6% increase.
For the fiscal second quarter, CRDO expects revenues between $230 million and $240 million, representing a 5% quarter-over-quarter increase at the midpoint.
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Credo beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with an average earnings surprise of 33.5%.
Our proven model does not conclusively predict an earnings beat for CRDO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
CRDO has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Credo’s fiscal second-quarter performance is likely to have been driven by strong demand for its active electrical cables (AEC) and optical products, along with deeper engagement with hyperscalers. Its technology delivers top-tier connectivity performance, handling speeds up to 1.6 Tbps across a broad range of industry protocols. For the current quarter, CRDO expects non-GAAP gross margin to be between 64% and 66% and Opex at $56-$58 million.
Growing AI infrastructure investments from hyperscalers and data centers are raising the demand for Credo’s high-performance, low-power connectivity solutions. As AI-driven infrastructure expands, the company is positioned to benefit from multiple growth trends, strengthening its role as a key player in next-generation data center networks. Credo reported fiscal first-quarter revenues of $223.1 million, up 31% sequentially and 274% year over year, surpassing guidance. Product revenue increased 279% year over year to $217.1 million, driven by continued double-digit sequential gains in AEC reaching new record levels.
Strategic hyperscaler partnerships continue to fuel Credo’s growth, supported by solutions that cover the entire product development cycle. Its integrated innovation framework—SerDes, IC design and system-level engineering, along with robust software and firmware—enables customers to build faster and achieve higher performance and reliability.
