TLDR
- Marvell hits record Q3 revenue, surpassing forecasts with AI growth boost.
- Celestial AI deal powers Marvell’s leap in data infrastructure innovation.
- Data center demand drives Marvell’s strong FY2026 growth projections.
- Sale to Infineon lifts earnings, fueling Marvell’s liquidity and expansion.
- Marvell eyes double-digit growth with AI-focused semiconductor strategy.
Marvell Technology (MRVL) stock climbed 1.96% to close at $92.89 after the company posted record third-quarter revenue.
Marvell Technology, Inc., MRVL
The semiconductor firm exceeded guidance expectations and strengthened its growth outlook for fiscal 2026. The acquisition of Celestial AI highlighted Marvell’s aggressive expansion in artificial intelligence infrastructure.
Record Revenue and Solid Quarterly Performance
Marvell reported net revenue of $2.075 billion for the third quarter of fiscal 2026, surpassing its forecast midpoint by $15 million. The gain followed a strong performance in data center products, which continued to drive the company’s momentum. Additionally, the quarter reflected a mix of strategic transactions and operational efficiency.
GAAP net income rose sharply to $1.901 billion, or $2.20 per diluted share, supported by significant one-time gains. Non-GAAP net income reached $655 million, or $0.76 per diluted share, showing steady operational progress. Cash flow from operations totaled $582.3 million, demonstrating consistent liquidity management.
The sale of Marvell’s automotive ethernet business to Infineon Technologies for $2.5 billion also boosted earnings. The transaction, completed on August 14, 2025, generated a pre-tax gain of $1.8 billion. The quarter’s results included the automotive unit’s contribution through the sale date.
Strategic Shift and AI Expansion
Marvell intensified its focus on high-performance data infrastructure and AI-driven products through new strategic moves. The acquisition of Celestial AI reinforced its position in advanced interconnect solutions for next-generation data centers. This purchase is expected to accelerate Marvell’s roadmap and strengthen its competitive standing in the AI infrastructure segment.
The company emphasized its plans to capitalize on the accelerating demand for AI and cloud-based technologies. It expects next year’s data center revenue growth to exceed earlier projections, driven by rising adoption rates. Marvell’s integration of Celestial AI will likely enhance product scalability and operational synergy.
With robust demand trends and technological advancements, Marvell aims to sustain double-digit growth across its core markets. The company’s proactive investments in innovation and efficiency are aligning with its long-term financial goals. As a result, its transformation toward AI-focused semiconductor leadership continues to gain momentum.
Fourth-Quarter Outlook and Financial Guidance
Marvell provided a strong outlook for the fourth quarter of fiscal 2026 with projected revenue near $2.2 billion. The company forecasted a 5% margin range, reflecting confidence in sustained market demand and execution. Non-GAAP gross margins are expected between 58.5% and 59.5%, supported by product mix optimization.
GAAP diluted earnings per share are estimated at $0.36, while non-GAAP EPS is projected around $0.79. Operating expenses are forecasted at approximately $741 million on a GAAP basis and $515 million on a non-GAAP basis. The outlook underscores disciplined cost management alongside continued investment in growth initiatives.
With 857 million diluted shares outstanding, Marvell aims to deliver consistent shareholder value through strategic expansion. The company’s fiscal guidance indicates optimism for continued growth and operational strength in upcoming quarters. Consequently, its latest results reaffirm Marvell’s position as a key player in the global semiconductor industry.
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