Marvell Technology (MRVL) investor relations material

Executive summary

• Achieved record Q3 FY26 revenue of $2.075B, up 37% year-over-year and 3% sequentially, driven by strong data center and communications demand, with data center revenue at $1.518B (73% of total).

• Completed sale of automotive ethernet business for $2.5B, resulting in a $1.8B pre-tax gain and a decline in automotive/industrial revenue.

• Announced acquisition of Celestial AI for $3.25B upfront, with up to $2.25B contingent on milestones, to accelerate optical interconnect leadership in AI data centers.

• Returned $1.35B to shareholders via stock buybacks and dividends, including a $1B accelerated repurchase.

• Record operating cash flow of $582M and cash and equivalents of $2.7B at quarter end.

Financial highlights

• Q3 GAAP net income: $1.901B ($2.20 EPS); non-GAAP net income: $655M ($0.76 EPS, up 77% YoY and 13% QoQ).

• Q3 GAAP gross margin: 51.6%; non-GAAP gross margin: 59.7%.

• Q3 GAAP operating margin: 17.2%; non-GAAP operating margin: 36.3%.

• Cash and cash equivalents: $2.7B; total debt: $4.5B.

• Operating expenses (non-GAAP): $485M, down 2% sequentially.

Outlook and guidance

• Q4 FY26 revenue guidance: $2.2B (+/-5%), with non-GAAP gross margin expected between 58.5%-59.5% and non-GAAP EPS guidance of $0.79 +/- $0.05.

• FY27 data center revenue expected to grow >25% YoY; FY28 data center revenue growth projected at ~40% YoY.

• Celestial AI expected to contribute $500M annualized run rate revenue by Q4 FY28 and $1B by Q4 FY29.

• Sequential revenue growth expected every quarter in FY27, with a stronger second half.

• Full-year revenue growth forecasted to exceed 40%.