Marvell Technology 2026 Q3 Earnings Net Income Surges 381.1% on AI-Driven Turnaround

Marvell Technology (MRVL) delivered a stunning Q3 2026 earnings report, exceeding expectations with a 36.8% revenue increase and a dramatic shift from a $676.30 million net loss to $1.90 billion profit. The company raised full-year revenue guidance and outlined aggressive growth targets for FY2027 and FY2028, driven by AI infrastructure expansion and strategic acquisitions.

Revenue

Marvell’s total revenue surged to $2.07 billion in Q3 2026, a 36.8% year-over-year increase, fueled by robust demand in data center and networking segments. Data center revenue led at $1.52 billion, representing 73% of total sales, with 38% year-over-year growth attributed to AI adoption. Enterprise networking contributed $237.20 million, while carrier infrastructure and consumer segments added $167.80 million and $116.60 million, respectively. Automotive/industrial revenue remained modest at $35 million.

Earnings/Net Income

The company’s profitability turnaround was equally impressive, with EPS jumping to $2.22 from a $0.78 loss, marking a 384.6% positive swing. Net income soared to $1.90 billion, a 381.1% increase from the prior year’s loss. This exceptional performance underscores Marvell’s effective cost management and favorable product mix.

Post-Earnings Price Action Review

A strategy of buying MRVL on revenue beats and selling after 30 days yielded a 362.13% return, far outperforming the benchmark’s 137.15%. The strategy’s 224.98% excess return highlights its ability to capitalize on positive earnings surprises, while a 0.00% maximum drawdown and a Sharpe ratio of 0.55 demonstrate strong risk management.

CEO Commentary

CEO Matthew Murphy highlighted record revenue of $2.075 billion, driven by 37% year-over-year growth in data center sales. The acquisition of Celestial AI is positioned to unlock $500 million in annual revenue by FY2028, with photonic fabric technology enabling next-gen AI infrastructure. Murphy expressed confidence in FY2027 data center growth exceeding 25%, citing secured purchase orders and momentum in interconnect solutions.

Guidance

Marvell guided Q4 2026 revenue to $2.2 billion (±5%), with data center revenue projected to grow >25% YoY in FY2027 and >40% in FY2028. Non-GAAP EPS for Q4 is forecast at $0.74–$0.84, with operating expenses rising at half the revenue growth rate. The company anticipates continued margin expansion and $2.2 billion in Q4 revenue, reflecting 6% sequential growth.

Additional News

1. Acquisition of Celestial AI: Marvell finalized a $3.25 billion deal for Celestial AI, enhancing its optical interconnect capabilities. The acquisition is projected to add $500 million in annual revenue by FY2028 and expand the company’s total addressable market to $94 billion by 2028.

2. $5 Billion Share Buyback: The board authorized a $5 billion accelerated stock repurchase program, underscoring confidence in the company’s valuation and capital return strategy.

3. Strategic Partnerships: Marvell secured a major design win with a leading hyperscaler for Celestial AI’s photonic fabric chiplets, solidifying its role in AI infrastructure. Collaborations with Amazon and Microsoft further position the company as a key player in AI-driven data center growth.