Marvell Technology reports $5.77bn revenue in FY2025 and projects 60%+ growth in Q1 2026

Overview

Marvell Technology delivered record revenue growth in fiscal year 2025, driven by strong demand in data center and AI infrastructure. The company reported $5.77bn in total revenue, marking a 5% increase year-over-year, with Q4 revenue reaching $1.82bn, up 27% YoY. Data Center revenue surged 78% YoY in Q4, reflecting continued expansion in AI-driven silicon and custom solutions. Marvell also returned $933m to shareholders through buybacks and dividends, while securing key design wins that will fuel future growth.

CEO Matt Murphy emphasized the company’s robust momentum: “We closed FY2025 on a high note, achieving record Q4 revenue and accelerating growth in AI-driven data infrastructure. Our custom AI silicon programs are now in volume production, and we expect over 60% YoY revenue growth in Q1 2026.”

Q4 FY2025 vs. Q4 FY2024:

Net revenue rose to $1.82bn (+27% YoY), driven by strong AI and Data Center demand.
- Data Center revenue grew strongly, to a value of $1.37bn (+78% YoY), reflecting growing adoption of Marvell’s AI and cloud solutions.
Gross profit recorded a value of $917.4m (+38% YoY), with gross margin of 50.5% (GAAP) and 60.1% (Non-GAAP), supported by improved product mix.
Net income was $200.2m, a significant improvement from the loss of $392.7m in Q4 FY2024, with diluted EPS of $0.23 (compared to a loss of $0.45 in Q4 FY2024). Non-GAAP net income was $531.4m (+32% YoY), with Non-GAAP diluted EPS of $0.60 (+30% vs. Q4 FY2024).
Net cash provided by operating activities decreased a little bit to a value of $514m (-6% YoY), but ensuring strong financial flexibility.

FY2025 highlights:

Total revenue increased to $5.77bn (+5% YoY), mainly driven by AI, cloud, and networking growth.
- Data Center revenue representing 75% of total revenue, while Enterprise networking, carrier infrastructure and Consumer segments decreased quite sharply, especially in Q4, by -35% and -38%, respectively.
Gross profit rose to $2.38bn (+4% YoY), with GAAP gross margin of 41.3% (vs. 41.6% in FY2024) and Non-GAAP gross margin of 61.0% (vs. 61.2% vs. FY2024).
GAAP net loss was $885m, a slight improvement from the $933m loss in FY2024, with diluted EPS of ($1.02), compared to ($1.08) in the previous fiscal year.
Non-GAAP net income recorded a value of $1.38bn (+5% YoY), with Non-GAAP diluted EPS of $1.57 (vs. $1.51 in FY2024).
Total operating expenses increased to a value of $3.1bn (+8% YoY), with R&D investments of $1.95bn (+3% YoY), reflecting ongoing development of custom silicon and high-speed interconnect solutions.
Operating cash flow surged to $1.68bn (+23% YoY), supporting investments in AI-driven semiconductor innovation and partnerships with AWS, Oracle, and major cloud providers for AI and data processing.

For fiscal year 2026, Marvell expects strong growth momentum, with Q1 2026 revenue projected at $1.88bn (+/- 5%), reflecting 60%+ YoY growth at the mid-point. The company anticipates GAAP gross margin of 50.5% and Non-GAAP gross margin of 60%, ensuring continued profitability. Non-GAAP diluted EPS is expected to reach $0.61 (+/- $0.05), reflecting sustained earnings strength. Marvell’s full-year revenue growth will be driven by AI and cloud expansion, reinforcing its leadership in semiconductor infrastructure.

The publication of the results didn’t bring good news for the company in terms of the stock price of MRVL shares, which suddenly dropped by -16.8% immediately after the market closed, after which it corrected slightly and returned to around the $77 threshold, which makes the decrease around -14% at the time of writing this article. In addition, the last 3 months can be described by a continuous downward trend in the market price, which decreased by almost -35% in this time interval. Thus, after this bad period, compared to the level of the last year, MRVL shares are trading at a price only +2.5% higher than the same period last year.