Marvell Technology Q2 Earnings Match Estimates, Revenues Rise Y/Y

Marvell Technology, Inc. MRVL came out with second-quarter fiscal 2026 earnings of 67 cents per share, in line with the Zacks Consensus Estimate. This compares to earnings of 30 cents per share a year ago. The bottom line increased 123.3% year over year and 8.1% sequentially, driven by higher revenues and effective cost management.

Marvell Technology’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.6%.

MRVL’s second-quarter fiscal 2026 revenues of $2.01 billion for the quarter ended July 2025, missing the Zacks Consensus Estimate by 0.23%. This compares to year-ago revenues of $1.27 billion.

Second-quarter revenues grew 57.6% year over year and 5.8% sequentially, mainly driven by strong growth in the data center and continued recovery in enterprise networking and carrier infrastructure end markets.

Marvell Technology’s Q2 End Market Details

Marvell Technology’s top-line growth was supported by impressive performances across its segments, which rose sequentially, while the data center segment registered phenomenal growth both year over year and quarterly.

Data center revenues of $1.49 billion increased 69.2% year over year and 3.5% sequentially. The top line showed robust improvement due to traction in custom XPU silicon, electro-optics interconnect products, and next-generation switch divisions primarily drove the robust increase. The segment accounted for 74.3% of the quarter’s total revenues, demonstrating that it is currently MRVL’s largest end market. Our estimate for the Data Center’s fiscal second-quarter revenues was pegged at $1.5 billion.

Revenues from enterprise networking rose 28.2% year over year and 9.1% sequentially to $193.6 million, and accounted for 9.7% of the total revenues. The year-over-year rise was primarily driven by the normalization of inventory levels. Our estimate for enterprise networking’s fiscal second-quarter revenues was pegged at $185.1 million.

Carrier infrastructure revenues, which accounted for 6% of the total revenues, rose 71% year over year but declined 6% sequentially to $130 million, reflecting demand recovery. Our estimate for the carrier infrastructure’s fiscal second-quarter revenues was pegged at $144.5 million.

Automotive/Industrial revenues were flat year over year and sequentially at $76 million, mainly due to continued weakness across the industrial market, offsetting automotive recovery. Revenues from this segment constituted 4% of the total revenues. Our estimate for Automotive/Industrial’s fiscal second-quarter revenues was pegged at $75.6 million.

Consumer revenues, representing 6% of the total revenues, increased 30% year over year and 84% sequentially to $116 million. Our estimate for Consumer’s fiscal second-quarter revenues was pegged at $94.7 million.

MRVL's Q2 Operating Details

Marvell Technology's non-GAAP gross profit of $1.19 billion reflected an increase of 62.9% year over year and 6.0% sequentially. However, the non-GAAP gross margin of 59.4% contracted 250 basis points (bps) year over year and 40 bps sequentially.

Non-GAAP operating expenses totaled $492.6 million compared with $455.8 million in the year-ago quarter and $486.2 million in the previous quarter. The non-GAAP operating margin of 34.8% expanded 870 bps year over year and 60 bps sequentially.

Marvell Technology Initiates Guidance for Q3

Considering the continued robust demand for its custom AI chips, Marvell Technology initiated strong revenue guidance for the third quarter. It expects revenues to be $2.06 billion (+/- 5%). The Zacks Consensus Estimate for revenues is pegged at $2.01 billion, implying 57.96% year-over-year improvement.

The non-GAAP gross margin is projected to be in the 59.5-60.0% range, while non-GAAP operating expenses are estimated to be around $485 million.

The company projects non-GAAP earnings per share for the fiscal third quarter to be 74 cents (+/- 5 cents), while the consensus mark for the same is currently pegged at 67 cents. The figure indicates a strong year-over-year improvement of 123.33%.

MRVL’s Zacks Rank and Stocks to Consider

MRVL currently has a Zacks Rank #3 (Hold).

Alkami Technology ALKT, Arista Networks ANET and Amphenol APH are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. While ANET and ALKT carry a Zacks Rank #2 (Buy) each, APH sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alkami Technology shares have lost 34.5% year to date. The Zacks Consensus Estimate for Alkami Technology’s full-year 2025 earnings is pegged at 15 cents per share, up by 2 cents over the past 30 days, implying growth of 51.7% from the year-ago quarter’s reported figure.

Arista Networks shares have lost 11.9% year to date. The Zacks Consensus Estimate for ANET’s full-year fiscal 2025 earnings is pegged at 65 cents per share, up by a penny in the past 30 days, indicating year-over-year growth of 13.66%.

Amphenol shares have gained 45.1% year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $2.69 per share in the past seven days, indicating year-over-year growth of 42.33%.

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