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• Revenue: $1.895 billion, 4% sequential increase, 63% year-over-year growth.

• Data Center Revenue: $1.44 billion, 5% sequential growth, 76% year-over-year growth.

• Enterprise Networking Revenue: $178 million.

• Carrier Infrastructure Revenue: $138 million.

• Consumer Revenue: $63 million, 29% sequential decline.

• Automotive and Industrial Revenue: $76 million, 12% sequential decline.

• GAAP Gross Margin: 50.3%.

• Non-GAAP Gross Margin: 59.8%.

• GAAP Operating Expenses: $682 million.

• Non-GAAP Operating Expenses: $486 million.

• GAAP Operating Margin: 14.3%.

• Non-GAAP Operating Margin: 34.2%.

• GAAP Earnings Per Share: $0.20.

• Non-GAAP Earnings Per Share: $0.62, 158% year-over-year growth.

• Cash Flow from Operations: $333 million.

• Stock Repurchases: $340 million.

• Total Debt: $4.2 billion.

• Cash and Cash Equivalents: $886 million.

• Second Quarter Revenue Guidance: $2 billion at midpoint, 57% year-over-year growth.

• Second Quarter Non-GAAP Gross Margin Guidance: 59% to 60%.

• Second Quarter Non-GAAP Earnings Per Share Guidance: $0.62 to $0.72.

• Warning! GuruFocus has detected 4 Warning Signs with MRVL.

Release Date: May 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Marvell Technology Inc (NASDAQ:MRVL) delivered record revenue of $1.895 billion for the first quarter of fiscal 2026, reflecting a 4% sequential increase and a strong 63% year-over-year growth.

• The data center end market achieved record revenue of $1.44 billion, growing 5% sequentially and 76% year-over-year, driven by robust AI demand.

• Marvell significantly increased stock repurchases in the first quarter, buying back $340 million, up from $200 million in the prior quarter.

• The company announced the sale of its automotive Ethernet business to Infineon for $2.5 billion, providing additional flexibility in capital allocation strategy.

• Marvell is forecasting second-quarter revenue of $2 billion at the midpoint of guidance, representing 57% year-over-year growth and setting another record revenue level.

Negative Points

• The consumer end market saw a 29% sequential decline in revenue, primarily driven by seasonality and gaming demand.

• The automotive and industrial end market experienced a 12% sequential decline in revenue, with industrial order patterns being lumpy.

• GAAP operating expenses were $682 million, including stock-based compensation and other costs, impacting overall profitability.

• Non-GAAP gross margin was 59.8%, slightly below expectations, partly due to the lower-margin custom silicon business.

• There are ongoing macroeconomic uncertainties that could impact future growth, requiring close monitoring of the broader environment.