Marvell Technology, Inc. (MRVL) Stock: Drops Over 7% Despite Record Q1 Revenue of $1.9 Billion

TLDR

Q1 revenue reached $1.895 billion, up 63% year-over-year Data center revenue soared 76% Non-GAAP EPS climbed 158% to $0.62 Stock buybacks totaled $340 million Q2 revenue guidance set at $2 billion midpoint

Marvell Technology, Inc. (MRVL) shares traded at $59.06, down 7.33%, as of writing on May 30, 2025.

Marvell Technology, Inc. (MRVL)

The company released its Q1 fiscal 2026 earnings, reporting strong year-over-year growth led by robust demand in the AI-driven data center market. Investors are eyeing the next earnings release between August 27 and September 1, 2025.

Strong Revenue and Earnings Growth

Marvell posted Q1 revenue of $1.895 billion, reflecting a 4% sequential rise and a sharp 63% year-over-year increase. The data center segment was the standout, delivering $1.44 billion in revenue, up 5% sequentially and an impressive 76% from the prior year. This surge is credited to soaring AI demand, which has reshaped Marvell’s growth trajectory.

Marvell Technology, $MRVL, Q1-26. Results:
🔴 -3.6% Post-Market

📊 Adj. EPS: $0.62 🟢
💰 Revenue: $1.895B 🟢
🔎 Record revenue driven by strong AI demand in the data center market, with custom silicon and electro-optics fueling growth. pic.twitter.com/sYgQUh5fba

— EarningsTime (@Earnings_Time) May 29, 2025

Non-GAAP earnings per share reached $0.62, marking 158% year-over-year growth, while GAAP EPS came in at $0.20. Despite high GAAP operating expenses of $682 million, non-GAAP operating expenses were lower at $486 million, allowing Marvell to achieve a non-GAAP operating margin of 34.2%. Gross margins held at 59.8%, slightly under expectations due to the custom silicon business’s lower profitability.

Segment Performance and Market Challenges

While data center performance shined, other segments faced hurdles. Enterprise networking revenue stood at $178 million, and carrier infrastructure generated $138 million. The consumer segment saw a sharp 29% sequential revenue drop, largely due to seasonal gaming demand shifts. Automotive and industrial revenue fell 12% sequentially, reflecting uneven order flows.

Despite these pressures, Marvell’s strategic sale of its automotive Ethernet business to Infineon for $2.5 billion provides added capital flexibility. The company also ramped up shareholder returns, with $340 million in stock repurchases in Q1, up from $200 million the prior quarter.

Outlook and Guidance

Looking ahead, Marvell forecasts second-quarter revenue of $2 billion at the midpoint, representing 57% year-over-year growth. Non-GAAP gross margin is expected to range between 59% and 60%, while non-GAAP EPS guidance is set between $0.62 and $0.72.

Marvell’s management cautioned about ongoing macroeconomic uncertainties that could influence growth patterns. While the company is riding strong AI-driven momentum, the variability in consumer and industrial demand, as well as pressures on gross margins, remain areas to monitor.

Despite a year-to-date stock return of -46.24% and a one-year decline of -22.61%, Marvell’s five-year performance remains up 85.8%. Investors will be watching closely to see if the company’s aggressive capital strategy and AI market leadership can reignite stock performance in the months ahead.

 

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