In after-hours trading, Credo Technologies (CRDO) fell by 10% after posting strong quarterly results. If history repeats itself, CRDO stock will rebound in the weeks following its earnings report.
Credo reported a 114.7% Y/Y increase in revenue, to $479 million. Non-GAAP EPS of $1.20 beat expectations. The firm forecasts Q2/2027 revenue of up to $535 million. The strong outlook should reward long-term investors for years to come.
Dell Technologies (DELL) reported that the AI build-out lifted its revenue by 57.6% Y/Y to $46.97 billion in the second quarter. DELL stock should pop by 8%, trading at around $460. It posted an EPS of $7.04 (non-GAAP).
Dell is guiding revenue of $192 billion, up 69% Y/Y, proving that the firm is more than a blue-chip stock.
Palo Alto Networks (PANW) posted a 34.3% Y/Y increase in revenue, to $3.41 billion. Although the stock will trade modestly lower this morning, readers should not ignore the strong outlook.
The firm is expecting next-generation security annual recurring revenue of $9.54 billion to $9.56 billion (+63% Y/Y). Total revenue will grow by 33% to 34% Y/Y. Unfortunately, the non-GAAP EPS of $1.02 included more employee compensation, such as sales commissions.
PANW stock might pop back to the $400 range. But it needs GAAP profit margin expansion to attract long-term investors.
