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Credo Soars on Record Quarter as Hyperscaler Demand Fuels Strong Guidance

Wall Street raised targets after Credo paired blowout results with aggressive Q3 guidance.

Overview

  • Credo reported Q2 revenue of $268.03 million, up 272% year over year, with adjusted EPS of $0.67 that topped consensus.
  • Net income swung to roughly $82.6 million from a loss a year earlier, reflecting stronger margins and scale.
  • Management projected Q3 revenue of $335 million to $345 million, far ahead of prior estimates.
  • Executives said hyperscalers drove the surge, with four customers each contributing more than 10% of Q2 revenue and a fifth beginning to contribute.
  • Credo announced a patent licensing deal with The Siemon Company for active electrical cable technology, while shares jumped double digits and analysts raised price targets to as high as $240–$250.