Marvell Technology, Inc. Reports First Quarter of Fiscal Year 2026 Financial Results
- Record quarterly revenue of $1.895 billion, up 63% year-over-year
- Strong Q2 guidance with expected revenue of $2.000 billion
- Robust growth in AI and data center segments driven by custom silicon programs
- Healthy cash flow from operations at $332.9 million
- Non-GAAP gross margin of 59.8% demonstrates strong profitability
- Significant gap between GAAP and non-GAAP earnings ($0.20 vs $0.62 EPS)
- High customer concentration risk mentioned in forward-looking statements
- Potential supply chain and component shortage risks highlighted
Insights
Marvell reports exceptional 63% YoY revenue growth, driven by AI demand and custom silicon programs with strong Q2 outlook.
Marvell Technology's Q1 FY2026 results reveal an impressive turnaround for the semiconductor firm, with record revenue of
The earnings report points to two clear growth drivers: custom silicon programs and electro-optics products - both centered around AI infrastructure. With non-GAAP gross margins at
The Q2 outlook appears even stronger, with projected revenue of
Most significant is Marvell's strategic positioning in custom AI infrastructure. As hyperscalers and large tech companies increasingly prefer custom silicon over off-the-shelf solutions for their AI implementations, Marvell has positioned itself at the center of this architectural shift. The upcoming June 17th investor event specifically focused on custom AI underscores management's confidence in this growth vector and suggests they have meaningful developments to share.
The dramatic revenue growth and forward guidance reflect Marvell's successful pivot toward high-growth AI infrastructure components, moving beyond their traditional data infrastructure business. This positions them favorably against competitors like Broadcom and Nvidia, who are also competing for AI-related semiconductor market share.
- Q1 Net Revenue:
$1.89 5 billion63% year-on-year - Q1 Gross Margin:
50.3% GAAP gross margin;59.8% non-GAAP gross margin - Q1 Diluted income per share:
$0.20 $0.62
Net revenue for the first quarter of fiscal 2026 was
"Marvell delivered record revenue in the first quarter of
Custom AI Investor Event – June 17, 2025
As previously announced on May 6, 2025, Marvell will host a Custom AI Investor Event, streamed live on June 17, 2025, beginning at 10:00 a.m. Pacific Time. This special event will feature presentations from Chairman and CEO Matt Murphy, members of the executive team, and a broad cross-section of Marvell's engineering leaders. The program will highlight advances in Marvell's comprehensive technology platform, which is enabling the next generation of custom AI infrastructure. In addition to a deep dive into the technology, the event will include a market-focused section with updates on the expanding opportunity for custom silicon, including Marvell's long-term market share goals.
Following the presentations, a live Q&A session will provide investors and analysts the opportunity to engage directly with company leadership. Questions can be submitted in real time using the "submit questions" link within the live event window.
The live webcast will be accessible via the Events section of Marvell's Investor Relations website at http://investor.marvell.com/. A replay will be made available following the event.
Second Quarter of Fiscal 2026 Financial Outlook
- Net revenue is expected to be
$2.00 0 billion5% . - GAAP gross margin is expected to be
50% to51% . - Non-GAAP gross margin is expected to be
59% to60% . - GAAP operating expenses are expected to be approximately
$735 million - Non-GAAP operating expenses are expected to be approximately
$495 million - Basic weighted-average shares outstanding are expected to be 864 million.
- Diluted weighted-average shares outstanding are expected to be 874 million.
- GAAP diluted net income per share is expected to be
$0.21 $0.05 - Non-GAAP diluted net income per share is expected to be
$0.67 $0.05
GAAP diluted EPS is calculated using basic weighted-average shares outstanding when there is a GAAP net loss, and calculated using diluted weighted-average shares outstanding when there is a GAAP net income. Non-GAAP diluted EPS is calculated using diluted weighted-average shares outstanding.
Conference Call
Marvell will conduct a conference call on Thursday, May 29, 2025 at 1:45 p.m. Pacific Time to discuss results for the first quarter of fiscal year 2026. Interested parties may join the conference call without operator assistance by registering and entering their phone number at https://emportal.ink/3YaAA6X to receive an instant automated call back. To join the call with operator assistance, please dial 1-800-836-8184 or 1-646-357-8785. The call will be webcast and can be accessed at the Marvell Investor Relations website at http://investor.marvell.com/. A replay of the call can be accessed by dialing 1-888-660-6345 or 1-646-517-4150, passcode 40410# until Thursday, June 5, 2025.
Discussion of Non-GAAP Financial Measures
Non-GAAP financial measures exclude the effect of stock-based compensation expense, amortization of acquired intangible assets, acquisition and divestiture related costs, restructuring and other related charges (including, but not limited to, asset impairment charges, recognition of future contractual obligations, employee severance costs, and facility exit related charges), resolution of legal matters, and certain expenses and benefits that are driven primarily by discrete events that management does not consider to be directly related to Marvell's core business. Although Marvell excludes the amortization of all acquired intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting arising from acquisitions, and that such amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Investors should note that the use of intangible assets contributed to Marvell's revenues earned during the periods presented and are expected to contribute to Marvell's future period revenues as well.
Marvell uses a non-GAAP tax rate to compute the non-GAAP tax provision. This non-GAAP tax rate is based on Marvell's estimated annual GAAP income tax forecast, adjusted to account for items excluded from Marvell's non-GAAP income, as well as the effects of significant non-recurring and period specific tax items which vary in size and frequency, and excludes tax deductions and benefits from acquired tax loss and credit carryforwards and changes in valuation allowance on acquired deferred tax assets. Marvell's non-GAAP tax rate is determined on an annual basis and may be adjusted during the year to take into account events that may materially affect the non-GAAP tax rate such as tax law changes; acquisitions; significant changes in Marvell's geographic mix of revenue and expenses; or changes to Marvell's corporate structure. For the first quarter of fiscal 2026, a non-GAAP tax rate of
Marvell believes that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to Marvell's financial condition and results of operations. While Marvell uses non-GAAP financial measures as a tool to enhance its understanding of certain aspects of its financial performance, Marvell does not consider these measures to be a substitute for, or superior to, financial measures calculated in accordance with GAAP. Consistent with this approach, Marvell believes that disclosing non-GAAP financial measures to the readers of its financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial measures, allows for greater transparency in the review of its financial and operational performance.
Externally, management believes that investors may find Marvell's non-GAAP financial measures useful in their assessment of Marvell's operating performance and the valuation of Marvell. Internally, Marvell's non-GAAP financial measures are used in the following areas:
- Management's evaluation of Marvell's operating performance;
- Management's establishment of internal operating budgets;
- Management's performance comparisons with internal forecasts and targeted business models; and
- Management's determination of the achievement and measurement of certain types of compensation including Marvell's annual incentive plan and certain performance-based equity awards (adjustments may vary from award to award).
Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of Marvell's business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of Marvell's results as reported under GAAP. The exclusion of the above items from our GAAP financial metrics does not necessarily mean that these costs are unusual or infrequent.
Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are subject to the "safe harbor" created by those sections. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results to differ materially from those implied by the forward-looking statements. Words such as "anticipates," "expects," "intends," "plans," "projects," "believes," "seeks," "estimates," "forecasts," "targets," "may," "can," "will," "would" and similar expressions identify such forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to, the statements describing our financial outlook and future period revenues. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual events or results may differ materially from those described in this press release due to a number of risks and uncertainties, including, but not limited to: risks related to our ability to estimate customer demand and future sales accurately; our ability to define, design, develop and market products for the Artificial Intelligence (AI), Cloud, and 5G markets; risks related to our dependence on a few customers for a significant portion of our revenue, particularly as our major customers comprise an increasing percentage of our revenue, as well as risks related to a significant portion of our sales being concentrated in the data center end market; risks that our customers develop their own solutions, vertically integrate which may reduce the need for our products, or acquire fully developed solutions from third parties; our ability to secure design wins from our customers and prospective customers; the impact of international conflict (such as the current armed conflicts in the
About Marvell
To deliver the data infrastructure technology that connects the world, we're building solutions on the most powerful foundation: our partnerships with our customers. Trusted by the world's leading technology companies for over 25 years, we move, store, process and secure the world's data with semiconductor solutions designed for our customers' current needs and future ambitions. Through a process of deep collaboration and transparency, we're ultimately changing the way tomorrow's enterprise, cloud, automotive, and carrier architectures transform—for the better.
Marvell® and the Marvell logo are registered trademarks of Marvell and/or its affiliates.
Marvell Technology, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In millions, except per share amounts) | ||||||
Three Months Ended | ||||||
May 3, | February 1, | May 4, | ||||
Net revenue | $ 1,895.3 | $ 1,817.4 | $ 1,160.9 | |||
Cost of goods sold | 942.9 | 900.0 | 633.1 | |||
Gross profit | 952.4 | 917.4 | 527.8 | |||
Operating expenses: | ||||||
Research and development | 507.7 | 499.0 | 476.1 | |||
Selling, general and administrative | 186.4 | 195.7 | 199.9 | |||
Restructuring related charges (gains), net | (12.3) | (12.5) | 4.1 | |||
Total operating expenses | 681.8 | 682.2 | 680.1 | |||
Operating income (loss) | 270.6 | 235.2 | (152.3) | |||
Interest expense | (48.7) | (45.0) | (48.8) | |||
Interest income and other, net | (6.0) | 9.6 | 3.3 | |||
Interest and other loss, net | (54.7) | (35.4) | (45.5) | |||
Income (loss) before income taxes | 215.9 | 199.8 | (197.8) | |||
Provision (benefit) for income taxes | 38.0 | (0.4) | 17.8 | |||
Net income (loss) | $ 177.9 | $ 200.2 | $ (215.6) | |||
Net income (loss) per share — basic | $ 0.21 | $ 0.23 | $ (0.25) | |||
Net income (loss) per share — diluted | $ 0.20 | $ 0.23 | $ (0.25) | |||
Weighted-average shares: | ||||||
Basic | 864.8 | 865.7 | 865.0 | |||
Diluted | 875.6 | 879.9 | 865.0 | |||
Marvell Technology, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In millions) | ||||
May 3, | February 1, | |||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $ 885.9 | $ 948.3 | ||
Accounts receivable, net | 1,144.0 | 1,028.4 | ||
Inventories | 1,071.4 | 1,029.7 | ||
Prepaid expenses and other current assets | 148.1 | 113.9 | ||
Assets held for sale | 588.2 | — | ||
Total current assets | 3,837.6 | 3,120.3 | ||
Property and equipment, net | 774.7 | 790.5 | ||
Goodwill | 11,062.2 | 11,586.9 | ||
Acquired intangible assets, net | 2,450.9 | 2,710.6 | ||
Deferred tax assets | 405.9 | 401.2 | ||
Other non-current assets | 1,492.4 | 1,595.0 | ||
Total assets | $ 20,023.7 | $ 20,204.5 | ||
Liabilities and Stockholders' Equity | ||||
Current liabilities: | ||||
Accounts payable | $ 562.7 | $ 622.2 | ||
Accrued liabilities | 939.8 | 972.6 | ||
Accrued employee compensation | 183.7 | 302.5 | ||
Short-term debt | 1,255.2 | 129.5 | ||
Total current liabilities | 2,941.4 | 2,026.8 | ||
Long-term debt | 2,977.4 | 3,934.3 | ||
Other non-current liabilities | 792.2 | 816.4 | ||
Total liabilities | 6,711.0 | 6,777.5 | ||
Stockholders' equity: | ||||
Common stock | 1.7 | 1.7 | ||
Additional paid-in capital | 14,294.2 | 14,534.1 | ||
Accumulated other comprehensive income (loss) | (0.1) | 0.4 | ||
Accumulated deficit | (983.1) | (1,109.2) | ||
Total stockholders' equity | 13,312.7 | 13,427.0 | ||
Total liabilities and stockholders' equity | $ 20,023.7 | $ 20,204.5 | ||
Marvell Technology, Inc. | ||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||
(In millions) | ||||
Three Months Ended | ||||
May 3, | May 4, | |||
Cash flows from operating activities: | ||||
Net income (loss) | $ 177.9 | $ (215.6) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 84.2 | 72.6 | ||
Stock-based compensation | 142.1 | 136.5 | ||
Amortization of acquired intangible assets | 245.7 | 264.9 | ||
Restructuring related charges (gains), net | (14.0) | 0.7 | ||
Deferred income taxes | (4.3) | (22.2) | ||
Other expense, net | 44.1 | 21.8 | ||
Changes in assets and liabilities, net of acquisitions: | ||||
Accounts receivable | (115.6) | 239.7 | ||
Prepaid expenses and other assets | 24.1 | 85.8 | ||
Inventories | (69.9) | 38.8 | ||
Accounts payable | (37.4) | (58.3) | ||
Accrued employee compensation | (117.6) | (92.2) | ||
Accrued liabilities and other non-current liabilities | (26.4) | (148.0) | ||
Net cash provided by operating activities | 332.9 | 324.5 | ||
Cash flows from investing activities: | ||||
Purchases of technology licenses | (1.1) | (0.5) | ||
Purchases of property and equipment | (118.8) | (91.5) | ||
Proceeds from sales of property and equipment | 25.9 | 0.1 | ||
Other, net | (0.1) | (10.0) | ||
Net cash used in investing activities | (94.1) | (101.9) | ||
Cash flows from financing activities: | ||||
Repurchases of common stock | (340.0) | (150.0) | ||
Proceeds from employee stock plans | 0.6 | 2.3 | ||
Tax withholding paid on behalf of employees for net share settlement | (50.2) | (74.1) | ||
Dividend payments to stockholders | (51.8) | (51.8) | ||
Payments on technology license obligations | (26.8) | (30.2) | ||
Proceeds from borrowings | 200.0 | — | ||
Principal payments of debt | (32.8) | (21.9) | ||
Other, net | (0.2) | — | ||
Net cash used in financing activities | (301.2) | (325.7) | ||
Net decrease in cash and cash equivalents | (62.4) | (103.1) | ||
Cash and cash equivalents at beginning of period | 948.3 | 950.8 | ||
Cash and cash equivalents at end of period | $ 885.9 | $ 847.7 | ||
Marvell Technology, Inc. | ||||||
Reconciliations from GAAP to Non-GAAP (Unaudited) | ||||||
(In millions, except per share amounts) | ||||||
Three Months Ended | ||||||
May 3, | February 1, | May 4, | ||||
GAAP gross profit | $ 952.4 | $ 917.4 | $ 527.8 | |||
Special items - expenses (income): | ||||||
Stock-based compensation | 11.2 | 10.1 | 9.7 | |||
Amortization of acquired intangible assets | 169.4 | 169.5 | 180.5 | |||
Restructuring related charges (a) | — | 1.1 | — | |||
Other cost of goods sold (b) | 0.5 | (6.1) | 6.0 | |||
Total special items | 181.1 | 174.6 | 196.2 | |||
Non-GAAP gross profit | $ 1,133.5 | $ 1,092.0 | $ 724.0 | |||
GAAP gross margin | 50.3 % | 50.5 % | 45.5 % | |||
Stock-based compensation | 0.6 % | 0.6 % | 0.8 % | |||
Amortization of acquired intangible assets | 8.9 % | 9.3 % | 15.5 % | |||
Restructuring related charges (a) | — % | 0.1 % | — % | |||
Other cost of goods sold (b) | — % | (0.4) % | 0.6 % | |||
Non-GAAP gross margin | 59.8 % | 60.1 % | 62.4 % | |||
Total GAAP operating expenses | $ 681.8 | $ 682.2 | $ 680.1 | |||
Special items - (expenses) income: | ||||||
Stock-based compensation | (130.9) | (137.5) | (126.8) | |||
Amortization of acquired intangible assets | (76.3) | (77.6) | (84.4) | |||
Restructuring related charges (a) | 12.3 | 12.5 | (4.1) | |||
Other (c) | (0.7) | (0.2) | (11.0) | |||
Total special items | (195.6) | (202.8) | (226.3) | |||
Total non-GAAP operating expenses | $ 486.2 | $ 479.4 | $ 453.8 | |||
GAAP operating margin | 14.3 % | 12.9 % | (13.1) % | |||
Stock-based compensation | 7.5 % | 8.1 % | 11.8 % | |||
Amortization of acquired intangible assets | 13.0 % | 13.6 % | 22.8 % | |||
Restructuring related charges (a) | (0.6) % | (0.6) % | 0.4 % | |||
Other cost of goods sold (b) | — % | (0.3) % | 0.5 % | |||
Other (c) | — % | — % | 0.9 % | |||
Non-GAAP operating margin | 34.2 % | 33.7 % | 23.3 % | |||
GAAP interest and other loss, net | $ (54.7) | $ (35.4) | $ (45.5) | |||
Special items - expenses (income): | ||||||
Other (c) | 7.4 | (5.8) | (2.4) | |||
Total special items | 7.4 | (5.8) | (2.4) | |||
Total non-GAAP interest and other loss, net | $ (47.3) | $ (41.2) | $ (47.9) | |||
GAAP net income (loss) | $ 177.9 | $ 200.2 | $ (215.6) | |||
Special items - expenses (income): | ||||||
Stock-based compensation | 142.1 | 147.6 | 136.5 | |||
Amortization of acquired intangible assets | 245.7 | 247.1 | 264.9 | |||
Restructuring related charges (a) | (12.3) | (11.4) | 4.1 | |||
Other cost of goods sold (b) | 0.5 | (6.1) | 6.0 | |||
Other (c) | 8.1 | (5.6) | 8.6 | |||
Pre-tax total special items | 384.1 | 371.6 | 420.1 | |||
Other income tax effects and adjustments (d) | (22.0) | (40.4) | 2.2 | |||
Non-GAAP net income | $ 540.0 | $ 531.4 | $ 206.7 | |||
GAAP weighted-average shares — basic | 864.8 | 865.7 | 865.0 | |||
GAAP weighted-average shares — diluted | 875.6 | 879.9 | 865.0 | |||
Non-GAAP weighted-average shares — diluted (e) | 875.6 | 879.9 | 876.0 | |||
GAAP diluted net income (loss) per share | $ 0.20 | $ 0.23 | $ (0.25) | |||
Non-GAAP diluted net income per share | $ 0.62 | $ 0.60 | $ 0.24 | |||
(a) | Restructuring and other related items include gain on sale of property, recognition of future contractual obligations, employee severance costs, facility exit related charges, and other. |
(b) | Other cost of goods sold includes product claim related matters and an intellectual property licensing claim. |
(c) | Other costs in operating expenses and interest and other loss, net include gain or loss on investments, and asset acquisition and divestiture related costs. |
(d) | Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of |
(e) | In periods of GAAP net loss, non-GAAP diluted weighted-average shares differs from GAAP diluted weighted-average shares due to the non-GAAP net income reported. |
Marvell Technology, Inc. | |
Outlook for the Second Quarter of Fiscal Year 2026 | |
Reconciliations from GAAP to Non-GAAP (Unaudited) | |
(In millions, except per share amounts) | |
Outlook for Three Months Ended August 2, 2025 | |
GAAP net revenue | |
Special items: | — |
Non-GAAP net revenue | |
GAAP gross margin | ~ |
Special items: | |
Stock-based compensation | 0.6 % |
Amortization of acquired intangible assets | 8.4 % |
Non-GAAP gross margin | ~ |
Total GAAP operating expenses | ~ |
Special items: | |
Stock-based compensation | 147 |
Amortization of acquired intangible assets | 76 |
Restructuring related charges and other | 17 |
Total non-GAAP operating expenses | ~ |
GAAP diluted net income per share | |
Special items: | |
Stock-based compensation | 0.18 |
Amortization of acquired intangible assets | 0.29 |
Restructuring related charges and other | 0.02 |
Other income tax effects and adjustments | (0.03) |
Non-GAAP diluted net income per share | |
Quarterly Revenue Trend (Unaudited)
Our product solutions serve five large end markets where our technology is essential: (i) data center, (ii) enterprise networking, (iii) carrier infrastructure, (iv) consumer, and (v) automotive/industrial. These markets and their corresponding customer products and applications are noted in the table below:
End market | Customer products and applications |
Data center | • Cloud and on-premise Artificial intelligence (AI) systems • Cloud and on-premise ethernet switching • Cloud and on-premise network-attached storage (NAS) • Cloud and on-premise AI servers • Cloud and on-premise general-purpose servers • Cloud and on-premise storage area networks • Cloud and on-premise storage systems • Data center interconnect (DCI) |
Enterprise networking | • Campus and small medium enterprise routers • Campus and small medium enterprise ethernet switches • Campus and small medium enterprise wireless access points (WAPs) • Network appliances (firewalls, and load balancers) • Workstations |
Carrier infrastructure | • Broadband access systems • Ethernet switches • Optical transport systems • Routers • Wireless radio access network (RAN) systems |
Consumer | • Broadband gateways and routers • Gaming consoles • Home data storage • Home wireless access points (WAPs) • Personal Computers (PCs) • Printers • Set-top boxes |
Automotive/industrial | • Advanced driver-assistance systems (ADAS) • Autonomous vehicles (AV) • In-vehicle networking • Industrial ethernet switches • • Video surveillance |
Quarterly Revenue Trend (Unaudited) (Continued) | |||||||||
Three Months Ended | % Change | ||||||||
Revenue by End Market (In millions) | May 3, | February 1, | May 4, | YoY | QoQ | ||||
Data center | $ 1,440.6 | $ 1,365.8 | $ 816.4 | 76 % | 5 % | ||||
Enterprise networking | 177.5 | 171.4 | 153.1 | 16 % | 4 % | ||||
Carrier infrastructure | 138.4 | 105.8 | 71.8 | 93 % | 31 % | ||||
Consumer | 63.1 | 88.7 | 42.0 | 50 % | (29) % | ||||
Automotive/industrial | 75.7 | 85.7 | 77.6 | (2) % | (12) % | ||||
Total Net Revenue | $ 1,895.3 | $ 1,817.4 | $ 1,160.9 | 63 % | 4 % | ||||
Three Months Ended | |||||||||
Revenue by End Market % of Total | May 3, | February 1, | May 4, | ||||||
Data center | 76 % | 75 % | 70 % | ||||||
Enterprise networking | 9 % | 9 % | 13 % | ||||||
Carrier infrastructure | 7 % | 6 % | 6 % | ||||||
Consumer | 3 % | 5 % | 4 % | ||||||
Automotive/industrial | 5 % | 5 % | 7 % | ||||||
Total Net Revenue | 100 % | 100 % | 100 % | ||||||
For further information, contact:
Ashish Saran
Senior Vice President, Investor Relations
408-222-0777
ir@marvell.com
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SOURCE Marvell
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