Marvell Technology Inc. reported third‑quarter fiscal 2026 revenue of $2.075 billion, a 37% year‑over‑year increase and $15 million above the midpoint of its guidance. Non‑GAAP earnings per share were $0.76, beating the consensus estimate of $0.74 by $0.02, or 2.7% of the expected figure. The earnings beat was driven by robust demand for data‑center products, which grew 37–38% year‑over‑year, and a favorable mix shift toward higher‑margin segments that helped lift the non‑GAAP gross margin to 59.7%.
The quarter’s revenue growth was underpinned by a 37–38% rise in data‑center revenue, the largest contributor to the top line, while enterprise networking and carrier‑infrastructure segments added modest gains. Compared with the $1.516 billion recorded in Q3 FY2025, the current quarter’s $2.075 billion represents a 37% sequential lift, confirming the company’s accelerating momentum in high‑growth AI‑driven workloads. The mix shift to higher‑margin data‑center contracts also mitigated the impact of lower‑margin legacy product sales, preserving profitability.
Marvell’s non‑GAAP gross margin of 59.7% reflects disciplined cost management amid rising component costs. The mix shift to data‑center and AI‑centric solutions, which command higher pricing power, offset any pressure from the ASIC business and other lower‑margin lines. Management highlighted that the company’s operational leverage continues to improve as revenue scales, allowing it to maintain margin expansion even as it invests in new product development and the upcoming Celestial AI acquisition.
For the fourth quarter, Marvell guided revenue to $2.200 billion, +/- 5%, and non‑GAAP EPS to $0.79, +/- $0.05. Full‑year revenue growth is now projected to exceed 40%, with data‑center revenue expected to grow more than 25% in the next fiscal year. The company also confirmed that the acquisition of Celestial AI will close in the first quarter of 2026, a move that is expected to accelerate its scale‑up connectivity strategy for next‑generation AI data centers. Matt Murphy, Chairman and CEO, said the results “demonstrate the strength of our data‑center portfolio and the momentum behind our AI‑first strategy,” adding that the Celestial AI deal “will accelerate our scale‑up roadmap and position Marvell as a leader in high‑bandwidth, low‑latency optical interconnects.”
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