Marvell Technology 2026 Q3 Earnings Strong Revenue Growth and Record Net Income Surge

Marvell Technology (MRVL) delivered a robust Q3 2026 performance, with revenue and net income far exceeding expectations. The stock gained 5.2% post-earnings amid strong profitability and optimistic guidance, signaling renewed investor confidence in its growth trajectory.

Revenue

Marvell’s total revenue surged 36.8% year-over-year to $2.07 billion, driven by record demand in its data center segment. Data center revenue alone reached $1.52 billion, reflecting strong adoption of AI infrastructure. Enterprise networking contributed $237.20 million, while carrier infrastructure and consumer segments added $167.80 million and $116.60 million, respectively. The automotive/industrial segment reported $35 million, rounding out the diversified revenue mix.

Earnings/Net Income

The company returned to profitability with a remarkable turnaround: EPS of $2.22 in Q3 2026, compared to a $0.78 loss in Q3 2025 (384.6% improvement). Net income soared to $1.90 billion, a 381.1% increase from a $676.30 million loss the prior year, underscoring operational efficiency and strategic execution. This marks a historic earnings milestone for the semiconductor leader.

Post-Earnings Price Action Review

The strategy of buying MRVL on revenue beats and selling after 30 days generated a 362.13% return, outperforming the 137.15% benchmark by 224.98%. With a 0.00% maximum drawdown and a Sharpe ratio of 0.55, the strategy demonstrated resilience in volatile markets. Investors capitalized on the positive earnings surprise, highlighting strong market conviction in Marvell’s growth narrative.

CEO Commentary

CEO Matthew Murphy emphasized the company’s momentum, driven by AI demand and strategic acquisitions like Celestial AI. He highlighted investments in data center and interconnect technologies as key growth pillars, with a focus on scaling custom silicon solutions. Murphy expressed confidence in sustaining this trajectory, citing robust order pipelines and a favorable macroeconomic backdrop.

Guidance

Marvell provided optimistic Q4 2026 revenue guidance of $2.2 billion (midpoint) and non-GAAP EPS of $0.79–$0.84. The CEO projected data center revenue growth of over 25% in fiscal 2027 and 40% in 2028, aligning with broader AI adoption trends.

Additional News

Marvell announced a $3.25 billion acquisition of photonics startup Celestial AI, aiming to accelerate data center innovation and challenge rivals like Broadcom. The board also authorized a $5 billion share repurchase program, signaling confidence in undervalued stock. Analysts at Cantor Fitzgerald raised the price target to $110, citing strong AI growth and a 24–25x earnings multiple for 2027 projections.