Marvell Technology Reports Q1 EPS Beat, Revenue Surpasses Expectations

Marvell Technology reported Q1 non-GAAP EPS of $0.62, beating estimates by $0.01. Revenue reached $1.9B, a 63.8% YoY increase and $20M above expectations. The company expects Q2 net revenue of $2B +/- 5%, in line with consensus estimates of $1.98B.

Marvell Technology Inc. (MRVL) reported its Q1 2025 earnings, which exceeded analyst expectations. The company's non-GAAP earnings per share (EPS) came in at $0.62, surpassing the estimate of $0.61 by $0.01 [1]. Revenue reached $1.895 billion, a 63.8% year-over-year (YoY) increase and $20 million above the expected $1.879 billion [1]. The company also provided guidance for the second quarter, expecting net revenue of $2 billion, plus or minus 5%, which aligns with the consensus estimate of $1.98 billion [2].

The strong Q1 performance was driven by robust demand in the AI-driven data center sector, which contributed to a 78% year-over-year growth in data center revenue [2]. Marvell's custom silicon initiatives and electro-optics product shipments also played a significant role in the company's growth [2].

Looking ahead, Marvell anticipates continued growth in the second quarter and beyond, as the industry shifts towards custom AI infrastructure. The company plans to highlight its advancements and opportunities at an investor event on June 17th [2].

Wall Street analysts are optimistic about Marvell's prospects. The average target price for the stock is $96.03, with a high estimate of $135.00 and a low estimate of $60.00, implying an average upside of 50.68% from the current price of $63.73 [2]. The consensus brokerage recommendation is "Outperform," with an average rating of 1.9 [2]. GuruFocus estimates the company's GF Value at $94.86, suggesting an upside of 48.85% from the current price [2].

However, Marvell faces some challenges. The consumer end market revenue declined 8% sequentially in the fourth quarter, with expectations of a further 35% decline in the first quarter of fiscal 2026 [2]. The automotive and industrial end market is also expected to decline sequentially in the high single digits in the first quarter of fiscal 2026 [2]. Additionally, there is a potential risk of competition in the custom XPU market and uncertainties in the timing and adoption of new technologies like co-packaged optics, which could impact future revenue growth [2].

References:
[1] https://www.tradingview.com/news/reuters.com,2025-05-29:newsml_PLXAC1CAB:0-brief-marvell-technology-q1-adjusted-eps-usd-0-62/
[2] https://www.gurufocus.com/news/2896872/marvell-technology-mrvl-sees-record-q1-revenue-boosted-by-ai-demand-mrvl-stock-news