Marvell Technology 2026 Q3 Earnings Strong Turnaround as Net Income Surges 381.1%

Marvell Technology (MRVL) delivered a dramatic turnaround in its fiscal 2026 Q3 earnings, reporting a net income of $1.90 billion—up from a $676.30 million loss in 2025 Q3. The results exceeded revenue expectations and marked a 36.8% year-over-year revenue increase to $2.07 billion. The company also raised its full-year growth forecast, projecting over 40% revenue expansion, driven by robust data center demand and strategic acquisitions.

Revenue

Marvell’s revenue surged 36.8% year-over-year to $2.07 billion, with data center sales leading the charge at $1.52 billion. Enterprise networking contributed $237.20 million, while carrier infrastructure added $167.80 million. Consumer revenue rose to $116.60 million, and automotive/industrial sales totaled $35 million. The diversified revenue streams underscored the company’s expanding market presence across high-growth sectors.

Earnings/Net Income

Marvell returned to profitability with EPS of $2.22, reversing a $0.78 loss in 2025 Q3. The net income of $1.90 billion reflected a 381.1% improvement, driven by cost discipline and strategic operational efficiencies.

This remarkable turnaround highlights Marvell’s ability to capitalize on market opportunities and optimize its financial performance.

Post-Earnings Price Action Review

The strategy of buying MRVL shares on the earnings release date and selling 30 days later underperformed the market, achieving a 20.42% return versus a 70.91% benchmark. With a CAGR of 7.02%, a maximum drawdown of 0.00%, and a Sharpe ratio of 0.19, the approach emphasized low-risk, steady returns.

CEO Commentary

CEO Matt Murphy highlighted the acquisition of Celestial AI as a transformative move, expanding Marvell’s leadership in AI connectivity. The integration of Celestial’s photonic fabric technology is expected to accelerate next-generation data center architectures, positioning the company to lead in optical interconnects critical for AI infrastructure.

Guidance

Marvell expects Celestial AI to generate $500 million annually by Q4 2028 and $1 billion by Q4 2029, with contingent earnout payments tied to revenue milestones. The acquisition, valued at $3.3 billion, is set to close in Q1 2026. For Q4 2026, the company forecasts revenue of $2.2 billion and non-GAAP EPS of $0.79, reflecting confidence in sustained demand.

Additional News

Marvell’s $3.3 billion acquisition of Celestial AI, announced alongside its earnings, aims to bolster its AI infrastructure capabilities. The deal includes $1 billion in cash and 27.2 million shares, with additional equity payouts contingent on revenue milestones. Separately, the company authorized a $5 billion share buyback program, signaling confidence in its stock’s valuation. Insiders, including CEO Matt Murphy and CFO Willem Meintjes, purchased shares totaling $1.8 million, further reinforcing management’s optimism.

The company also reported a quarterly dividend of $0.06 per share, paid on October 30, 2025, maintaining its commitment to shareholder returns despite a challenging market environment.