Marvell Technology 2026 Q3 Earnings Record Revenue and 381% Net Income Surge

Marvell Technology (MRVL) delivered a strong earnings report, surpassing revenue expectations and reversing to profitability with a significant net income turnaround. The stock surged 5.2% post-earnings as investors focused on robust forward guidance and improved margins.

Revenue

Marvell’s total revenue rose 36.8% year-over-year to $2.07 billion, driven by a record $1.52 billion in data center sales. Enterprise networking and carrier infrastructure segments contributed $237.20 million and $167.80 million, respectively, while consumer and automotive/industrial segments added $116.60 million and $35 million. The data center segment’s performance was fueled by AI demand and strategic acquisitions.

Earnings/Net Income

The company returned to profitability with EPS of $2.22, a 384.6% improvement from a $0.78 loss in 2025 Q3. Net income soared to $1.90 billion, a 381.1% increase from a $676.30 million loss, reflecting a remarkable turnaround in cost management and operational efficiency. This earnings performance underscores Marvell’s ability to capitalize on high-margin opportunities in AI and data center markets.

Post-Earnings Price Action Review

A strategy of buying MRVL when revenues beat expectations and holding for 30 days generated a 65.20% return, though it underperformed the 84.40% benchmark. The Sharpe ratio of 0.19 indicates modest risk-adjusted returns, while the 0.00% maximum drawdown highlights the strategy’s lack of significant downside during the backtest period.

CEO Commentary

CEO Matthew Murphy emphasized momentum in interconnect, switching, and XPU markets, with custom revenue rebounding. He projected data center growth exceeding 25% in fiscal 2027, supported by design wins and long-term partnerships. Murphy’s confidence in sustained performance positions Marvell to benefit from AI-driven demand.

Guidance

Marvell guided Q4 2026 revenue to $2.2 billion (midpoint), with data center revenue expected to grow over 25% YoY in fiscal 2027. The CEO highlighted strategic acquisitions and product cycles as key growth drivers.

Additional News

Marvell’s $3.25 billion acquisition of Celestial AI, aimed at advancing photonics technology for AI and memory chips, was a major catalyst. The board also authorized a $5 billion share repurchase program, signaling confidence in undervalued stock. Analysts raised price targets, including UBS ($110) and Evercore ISI ($122), citing strong AI and data center growth prospects.