Marvell Technology 2026 Q1 Earnings Strong Recovery as Net Income Swings 182.5%

Marvell Technology (MRVL) reported its fiscal 2026 Q1 earnings on May 30th, 2025. The company exceeded Wall Street expectations with earnings per share (EPS) of $0.62, surpassing the consensus estimate of $0.61. Revenue for the quarter was also above expectations, reaching $1.895 billion compared to the anticipated $1.88 billion. Looking ahead, Marvell's guidance for the second quarter remains in line with market expectations, forecasting revenue of $2 billion. This positive outlook reflects the company's confidence in maintaining growth momentum, particularly in its AI-driven data center business.

Revenue
Marvell Technology's total revenue for the first quarter of fiscal 2026 reached $1.90 billion, marking a robust 63.3% increase compared to the prior year. The data center segment led the growth, generating $1.44 billion, while enterprise networking reported revenues of $177.50 million. Carrier infrastructure contributed $138.40 million, followed by the consumer segment with $63.10 million. Automotive and industrial sectors added $75.70 million to the overall revenue.

Earnings/Net Income
Marvell Technology returned to profitability with an EPS of $0.21 in Q1 2026, a significant improvement from the loss of $0.25 per share in Q1 2025, indicating a 184.0% positive change. The company's net income also saw a remarkable turnaround, reaching $177.90 million in Q1 2026, a 182.5% positive swing from the net loss of $-215.60 million in Q1 2025. The EPS reflects a positive trajectory for Marvell.

Post-Earnings Price Action Review
A strategy involving purchasing Marvell Technology shares following a revenue miss and holding them for 30 days yielded a return of 75.77%, slightly underperforming the benchmark return of 83.88%. Despite a maximum drawdown of -65.39%, a Sharpe ratio of 0.22, and a volatility of 55.61%, the strategy effectively managed risk, providing conservative returns. This approach is particularly suitable for investors seeking stability, as it offers a balanced risk-reward profile. Although the returns were modest compared to the benchmark, the strategy successfully navigated market fluctuations, exemplifying a reliable method for cautious investors. By focusing on risk management, the strategy demonstrates resilience in volatile market conditions, appealing to those prioritizing a steady investment journey over aggressive gains.

CEO Commentary
Matt Murphy, Chairman and Chief Executive Officer, expressed optimism about Marvell's first quarter performance, highlighting record revenue of $1.895 billion, driven by strong growth in the data center end market, particularly from AI demand. He noted, "We are forecasting second quarter revenue of $2 billion at the midpoint of guidance," indicating continued momentum. Murphy emphasized the successful scaling of custom AI silicon programs and ongoing revenue recovery in carrier infrastructure and enterprise networking. He acknowledged macroeconomic uncertainties but maintained confidence in Marvell's long-term goals, stating, "We expect this transition from copper to optical interconnects to significantly expand Marvell's interconnect revenue and market opportunities."

Guidance
For the second quarter of fiscal 2026, Marvell Technology is guiding revenue to be in the range of $2 billion, reflecting a year-over-year growth expectation of 57%. The company anticipates non-GAAP earnings per diluted share to be between $0.62 and $0.72, with GAAP gross margin projected between 50% and 51%. Additionally, non-GAAP gross margin is expected to range from 59% to 60%, while GAAP operating expenses are projected to be approximately $735 million.

Additional News
Marvell Technology has recently announced the sale of its automotive Ethernet business to Infineon for $2.5 billion in cash, a strategic move to streamline its focus on core data infrastructure segments. The company also postponed its investor day originally scheduled for June 10th, citing macroeconomic uncertainties. Marvell has extended connectivity leadership with AEC ecosystem demonstrations at the OFC 2025, showcasing its advancements in interconnect portfolio for scale-up and scale-out fabrics, reinforcing its position in the custom AI infrastructure market.