Marvell Technology Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Marvell Technology, Inc. MRVL came out with third-quarter fiscal 2026 earnings of 76 cents per share, beating the Zacks Consensus Estimate by 1.3%. The company reported earnings of 43 cents per share a year ago. The bottom line increased 76.7% year over year.

Marvell Technology’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 2.8%.

MRVL’s third-quarter fiscal 2026 revenues of $2.08 billion surpassed the Zacks Consensus Estimate by 0.61%. MRVL reported revenues of $1.52 billion in the year-ago quarter.

Third-quarter revenues grew 36.8% year over year, mainly driven by strong growth in the data center and continued recovery in enterprise networking and carrier infrastructure end markets.

Marvell Technology’s Q3 End Market Details

Marvell Technology’s top-line growth was supported by impressive performances across its segments, all of which rose sequentially, while the data center segment continued to deliver exceptional annual and quarterly expansion.

Data center revenues of $1.52 billion increased 37.8% year over year and 1.8% sequentially, driven by strong traction in custom XPU silicon, electro-optic interconnect products and next-generation switch offerings. The segment contributed 73.2% of total revenues, reaffirming its position as MRVL’s largest end market. Our estimate for the Data Center’s fiscal third-quarter revenues was pegged at $1.49 billion.

Revenues from enterprise networking rose 57% year over year and 23% sequentially to $237.2 million, accounting for 11.4% of total revenues. The robust growth primarily reflected the continued normalization of inventory levels. Our estimate for enterprise networking’s fiscal third-quarter revenues was pegged at $251.6 million.

Carrier infrastructure revenues increased 98% year over year and 29% sequentially to $167.8 million, representing 8.1% of total revenues, driven by demand recovery across carrier customers. Our estimate for the carrier infrastructure’s fiscal third-quarter revenues was pegged at $169.2 million.

Automotive/Industrial revenues declined 58% year over year and 54% sequentially to $35 million, mainly due to the divestiture of the Automotive Ethernet business, coupled with persistent weakness in the industrial segment. This segment contributed 2% of total revenues. Our estimate for Automotive/Industrial’s fiscal third-quarter revenues was pegged at $35.1 million.

Consumer revenues grew 21% year over year and 1% sequentially to $116.6 million, representing 6% of total revenues. Our estimate for Consumer’s fiscal third-quarter revenues was pegged at $112.8 million.

MRVL's Q3 Operating Details

Marvell Technology's non-GAAP gross profit of $1.24 billion increased 35% year over year, with a non-GAAP gross margin of 59.7%, expanding 30 bps sequentially but contracting 80 bps year over year.

Non-GAAP operating expenses totaled $485 million compared with $466.9 million in the year-ago quarter and $492.6 million in the prior quarter. The non-GAAP operating margin improved to 36.3%, expanding 660 bps year over year and 150 bps sequentially.

Marvell Technology Initiates Guidance for Q4

Considering the continued robust demand for its data center and AI-driven products, Marvell Technology issued strong revenue guidance for the fourth quarter. It expects revenues to be $2.20 billion (+/- 5%). The Zacks Consensus Estimate for revenues is pegged at $2.15 billion, implying 18.52% year-over-year improvement.

The non-GAAP gross margin is projected to be in the 58.5-59.5% range, while non-GAAP operating expenses are estimated to be approximately $515 million.

The company projects non-GAAP earnings per share for the fiscal fourth quarter to be $0.79 (+/- $0.05). The Zacks Consensus Estimate for revenues is pegged at 75 cents, implying 74.4% year-over-year improvement.

MRVL’s Zacks Rank & Other Stocks to Consider

Currently, Marvell Technology has a Zacks Rank #2 (Buy).

Advanced Energy Industries AEIS, Allot ALLT and Amphenol APH are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. Each stock sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Advanced Energy Industries shares have surged 77.7% in the past six months. The Zacks Consensus Estimate for Advanced Energy Industries' 2025 earnings is pegged at $6.23 per share, up by 9.6% over the past 30 days, implying growth of 67.92% from the year-ago quarter’s reported figure.

Allot shares have gained 7.7% in the past six months. The Zacks Consensus Estimate for Allot’s 2025 earnings is pegged at 22 cents per share, which has increased 57.1% over the past 30 days, indicating year-over-year growth of 450%.

Amphenol shares have gained 54.4% in the past six months. The Zacks Consensus Estimate for Amphenol’s 2025 earnings has increased 2.17% to $3.29 per share in the past 30 days, indicating year-over-year growth of 74.07%. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research