Credo Technology reported Q2 FY26 revenue of $268 million, marking a 272% year-over-year increase. This extraordinary growth was driven primarily by surging demand for aerospace, defense and communications (AEC) components, as well as rapid adoption of AI clusters requiring high-performance connectivity. The company attributed nearly $150 million of the quarter’s revenue to new design wins in next-generation data center applications, representing a 320% jump over the same period last year.

In addition to top-line strength, Credo delivered a net income margin of 15% in Q2, reflecting disciplined cost management and scaling efficiencies. Research and development expenses rose 40% year-over-year to accelerate product roadmap milestones, while operating expenses remained below 30% of revenue. Management reiterated full-year FY26 guidance of $1.0–1.05 billion in revenue and forecasted a net income margin expansion to 18% by fiscal year end, positioning the stock for continued upside in 2026.