Marvell Technology, Inc. MRVL started fiscal 2026 on a strong note by reporting stronger-than-expected first-quarter results. The chip maker reported first-quarter non-GAAP earnings of 62 cents per share, decisively exceeding the Zacks Consensus Estimate by 1.64%.
Quarterly earnings also came ahead of the midpoint of the company’s guidance of 61 cents (+/- 5 cents). Furthermore, the bottom line increased 158% year over year and 3% sequentially, driven by higher revenues and effective cost management.
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Marvell’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.6%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Marvell’s first-quarter revenues of approximately $1.9 billion beat the Zacks Consensus Estimate by 1.04%. The top line was also above the midpoint of management’s guidance of $1.875 billion (+/- 5%). First-quarter revenues grew 63% year over year and 4% sequentially, mainly driven by strong growth in the data center and continued recovery in enterprise networking and carrier infrastructure end markets.
Marvell Technology, Inc. Price, Consensus and EPS Surprise
Marvell Technology, Inc. price-consensus-eps-surprise-chart | Marvell Technology, Inc. Quote
Marvell’s Q1 End Market Details
Marvell’s top-line growth was supported by impressive performances across its segments, which rose sequentially, while the data center segment registered phenomenal growth both year over year and quarterly.
Data center revenues of $1.44 billion increased 76% year over year and 5% sequentially. The solid momentum in electro-optics products, custom AI silicon and next-gen switch divisions primarily drove the robust year-over-year and sequential increase. The segment accounted for 76% of the quarter’s total revenues, demonstrating that it is currently MRVL’s largest end market. Our estimate for Data Center’s fiscal first-quarter revenues was pegged at $1.4 billion.
Revenues from enterprise networking increased 16% year over year and 4% sequentially to $178 million and accounted for 9% of the total revenues. The year-over-year rise was primarily driven by continued demand recovery across the end market. Our estimate for enterprise networking’s fiscal first-quarter revenues was pegged at $186.9 million.
Carrier infrastructure revenues, which accounted for 7% of the total revenues, soared 93% year over year and 31% sequentially to $138 million due to continued demand recovery. Our estimate for the carrier infrastructure’s fiscal first-quarter revenues was pegged at $114.4 million.
Automotive/Industrial revenues decreased 2% year over year and 12% sequentially to $76 million, mainly due to continued weakness across the industrial end market, which more than offset the benefits of recovery in the automotive segment. Revenues from this segment constituted 4% of the total revenues. Our estimate for the Automotive/Industrial’s fiscal first-quarter revenues was pegged at $88.9 million.
Consumer revenues, representing 2% of the total revenues, increased 50% year over year but declined 29% sequentially to $42 million. Our estimate for Consumer’s fiscal first-quarter revenues was pegged at $90.4 million.
Marvell's Q1 Operating Details
Marvell’s non-GAAP gross profit of $1.13 billion reflected an increase of 56.6% on a year-over-year basis and 3.8% sequentially. However, the non-GAAP gross margin of 59.8% contracted 260 basis points (bps) on a year-over-year basis and 30 bps sequentially.
Non-GAAP operating expenses totaled $486.2 million compared with $453.8 million in the year-ago quarter and $479.4 million in the previous quarter.
Marvell’s non-GAAP operating profit of $647.3 million reflected an increase of 239.6% on a year-over-year basis and 5.7% sequentially. Marvell’s non-GAAP operating margin of 34.2% expanded 1,090 bps year over year and 50 bps sequentially.
Marvell Initiates Guidance for Q2
Considering continued robust demand for its custom AI chips, Marvell initiated strong revenue guidance for the second quarter. It expects revenues to be $2 billion (+/- 5%) for the second quarter. The Zacks Consensus Estimate for revenues is pegged at $1.98 billion, with a year-over-year improvement of 55.2%. The non-GAAP gross margin is projected to be in the 59%-60% range, while non-GAAP operating expenses are estimated to be $495 million.
The company projects non-GAAP earnings per share for the fiscal second quarter to be 67 cents per share (+/- 5 cents per share), while the consensus mark for the same is currently pegged at 65 cents. The figure remains unchanged over the past 60 days and indicates a year-over-year improvement of 116.7%.
Marvell’s Zacks Rank & Stocks to Consider
Marvell currently carries a Zacks Rank #4 (Sell).
Amphenol APH, Juniper Networks JNPR and Upwork UPWK are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. APH, JNPR and UPWK each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphenol shares have surged 27.3% in the year-to-date period. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings is pegged at $2.66 per share, up by 8 cents over the past 30 days, suggesting growth of 40.7% from the year-ago quarter’s reported figure.
Juniper Networks shares have declined 3.7% in the year-to-date period. The Zacks Consensus Estimate for Juniper Networks’ full-year fiscal 2025 earnings has been revised upward by a penny to $2.09 in the past 30 days, suggesting year-over-year growth of 21.5%.
Upwork shares have fallen 3.2% in the year-to-date period. The Zacks Consensus Estimate for Upwork’s full-year 2025 earnings has been revised upward by 10 cents over the past 30 days to $1.14 per share, implying a rise of 9.6% from the year-ago quarter’s levels.
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