Marvell Technology (MRVL) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 FY2026 revenue of $1.895 billion, up 63% year-over-year and 4% sequentially, surpassing guidance midpoint, driven by strong AI demand in the data center segment.

• Data center revenue reached $1.44 billion, up 76% year-over-year and 5% sequentially, now comprising 76% of total revenue.

• Announced sale of automotive Ethernet business to Infineon for $2.5 billion, expected to close in 2025.

• Net income was $177.9 million, reversing a net loss of $215.6 million in the prior year quarter.

• Custom silicon programs and electro-optics products contributed significantly to growth, with robust shipments of 800G PAM and 400ZR DCI products.

Financial highlights

• Q1 revenue: $1.895 billion; data center contributed 76% of total revenue.

• GAAP gross margin: 50.3%; Non-GAAP gross margin: 59.8%.

• GAAP operating margin: 14.3%; Non-GAAP operating margin: 34.2%.

• GAAP EPS: $0.20; Non-GAAP EPS: $0.62, up 158% year-over-year.

• Cash and cash equivalents at quarter-end: $885.9 million.

Outlook and guidance

• Q2 FY2026 revenue guidance: $2 billion (+/-5%), with GAAP gross margin 50–51% and Non-GAAP gross margin 59–60%.

• Q2 GAAP EPS expected between $0.16–$0.26; Non-GAAP EPS between $0.62–$0.72.

• Continued sequential growth expected in data center, enterprise networking, and carrier infrastructure.

• Automotive Ethernet business divestiture expected to close in 2025, subject to regulatory approvals.

• Government incentives expected to benefit cost structure through February 2030, contingent on meeting investment levels.