Marvell Targets 36% Revenue Growth for Q3 2026 Amid $2.5B Auto Divestiture and Expanding AI Market Share.

Marvell Technology reports record revenue of $2.006 billion for Q2 2026, a 6% sequential increase and 58% YoY growth, driven by strong AI demand in the data center end market. CEO Matthew J. Murphy expects 36% revenue growth for Q3 2026 amid a $2.5 billion auto divestiture and expanding AI market share.

Marvell Technology, Inc. (NASDAQ: MRVL), a leading provider of data infrastructure semiconductor solutions, reported strong financial results for the second quarter of fiscal year 2026. The company achieved record net revenue of $2.006 billion, representing a 58% year-over-year (YoY) increase and a 6% sequential growth from the previous quarter [1].

Key highlights of the quarter include a GAAP gross margin of 50.4% and a non-GAAP gross margin of 59.4%. Diluted income per share stood at $0.22 under GAAP and $0.67 non-GAAP. The company also reported cash flow from operations of $461.6 million for the quarter [1].

Matthew J. Murphy, Marvell's Chairman and CEO, attributed the growth to robust demand for the company's custom silicon and electro-optics products, particularly in the AI and enterprise networking markets. He noted that the company's custom AI design activity is at an all-time high, with over 50 new opportunities across more than 10 customers [1].

Looking ahead, Marvell expects net revenue of $2.060 billion for the third quarter of fiscal 2026, with a range of $2.008 billion to $2.112 billion. The company anticipates GAAP gross margin of 51.5% to 52.0% and non-GAAP gross margin of 59.5% to 60.0%. Non-GAAP diluted net income per share is expected to be $0.74, with a range of $0.69 to $0.79 [1].

The financial outlook for the third quarter reflects the divestiture of Marvell's Automotive Ethernet business on August 14, 2025. The company will conduct a conference call on August 28, 2025, to discuss the second quarter results and provide further insights into the financial outlook [1].

References:
[1] https://investor.marvell.com/2025-08-28-Marvell-Technology,-Inc-Reports-Second-Quarter-of-Fiscal-Year-2026-Financial-Results