Credo Technology (NASDAQ:CRDO) shares surged almost 15% as it reported fiscal second quarter earnings that topped Wall Street estimates, driven by rising demand for its AI-driven connectivity solutions.
For the quarter ended November 1, revenue was up 20.2% year-over-year at $268 million, ahead of estimates of $234.67 million.
Credo’s core products drove substantial growth, with product sales up 278.3% year-over-year to $261.3 million and IP license sales increasing 127.6% to $6.7 million.
Adjusted earnings per share were $0.67, far ahead of the consensus $0.49.
“These are the strongest quarterly results in Credo’s history, and they reflect the continued build-out of the world’s largest AI training and inference clusters,” Credo CEO Bill Brennan said in a statement.
“Looking forward, the combination of continued growth in our core AEC and IC franchises, plus the upcoming ramps of our recently announced ZeroFlap Optics, ALCs, and OmniConnect gearbox solutions, gives us an outlook with strong revenue growth and profitability through fiscal 2026 and beyond.”
For Q3, Credo guided revenue in the range of $335 million to $340 million, topping the Street consensus of $341 million.