Marvell's Q4 2025 Earnings Call: Unpacking Contradictions in AI Revenue, Custom Compute, and Customer Strategy

These are the key contradictions discussed in Marvell Technology's latest 2025Q4 earnings call, specifically including: AI Revenue Growth Expectations, Custom Compute Business Performance, and Customer Diversification:



Revenue Growth and Data Center Performance:
- Marvell reported record revenue of $1.817 billion for Q4 FY2025, exceeding the midpoint of guidance, growing 20% sequentially and 27% year-over-year.
- The growth was driven by strong demand in the data center end market fueled by AI, with custom AI silicon programs ramping to high-volume production.

Custom Silicon Business Momentum:
- Marvell's custom silicon programs have ramped successfully from initial samples to high-volume production, with leading AI custom programs on high volume production.
- The strong execution in custom silicon is expected to drive continued growth in fiscal 2026 and beyond, contributing to revenue from this segment.

Data Center Revenue Leadership:
- Data center revenue accounted for 75% of Marvell's consolidated revenue in Q4, with Q4 revenue at $1.37 billion, growing 78% year-over-year and 24% sequentially.
- Growth was driven by custom AI silicon programs, electro-optics products, and strong shipments ofTerllynx ethernet switches.

Multi-market Business Recovery:
- Marvell's enterprise networking revenue was $171 million, and carrier infrastructure revenue totaled $106 million in Q4, collectively growing 18% sequentially.
- Continued recovery in these end markets, supported by strong revenue growth forecasting 10% sequentially for Q1 FY2026.

Operating Margin and Financial Health:
- For fiscal 2025, Marvell reported a non-GAAP operating margin of 28.9%, improving 1,300 basis points from Q1 to Q4, with a record $1.68 billion in operating cash flow.
- The financial progress was driven by strong demand, increased operating leverage, and effective capital returns through stock repurchases and dividends.