Credo Technology Group reported a blockbuster Q1 2026, delivering revenue of $223.1 million, up 31% sequentially and 274% year over year, underscoring the accelerating demand for high-speed connectivity in AI-centric data-center deployments. The company achieved a non-GAAP gross margin of 67.6% and non-GAAP net income of $98.3 million (approximately 44.1% net margin), delivering robust operating leverage as volume expands and mix shifts toward higher-value SerDes and system-level solutions. Credo also reinforced execution across its three core growth pillars—AECs (active electrical cables), optical DSP/LRO solutions, and PCIe retimers—while signaling meaningful diversification of its hyperscaler customer base and continued market expansion into rack-to-rack and scale-up architectures. Management maintained a disciplined guidance framework for 2026, with projected revenue of $230–$240 million and coherent margin expectations, supported by a strong balance sheet with $479.6 million in cash and cash equivalents and sobre free cash flow generation. Investors should monitor hyperscaler onboarding cadence, AEC and PCIe adoption cycles, optical DSP ramp timing toward 1.6 Tbps, tariff dynamics, and the pace of PCIe-based platform wins that underpin the long-term TAM expansion.