Marvell Technology, Inc. Q1 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Record revenue of $1.895 billion, up 4% sequentially and 63% year-over-year (YoY).
  • Record non-GAAP EPS of $0.62, above guidance midpoint and up 158% YoY.
  • AI-driven data center business continues to be the primary growth engine.
  • Strong sequential recovery in enterprise networking and carrier infrastructure.
  • Significant capital return: $340M in share repurchases (vs. $200M prior quarter) + $52M dividends.
  • Announced sale of automotive Ethernet business to Infineon for $2.5 billion cash (closing expected in 2025).

Q2 FY2026 Outlook

  • Revenue expected at $2.0 billion (midpoint), up 57% YoY; would be another record.
  • Non-GAAP gross margin: 59–60%.
  • Non-GAAP operating expenses: approx. $495M.
  • Non-GAAP EPS: $0.62–$0.72.

End Market Performance

Data Center

  • Q1 revenue: $1.44 billion, up 5% sequentially and 76% YoY.
  • AI now >50% of total data center revenue; expected to become >50% of entire company revenue in the coming years.
  • Q2 outlook: mid-single-digit sequential growth with continued strong AI demand.
  • Key drivers:
    • Ramp of custom AI XPU programs into high-volume production.
    • Strong demand for electro-optics (PAM, DCI).

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Operator: Good afternoon, and welcome to Marvell Technology, Inc. First Quarter of Fiscal Year 2026 Earnings Conference Call. Note that all participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I would now like to turn the conference over to Mr. Ashish Saran, Senior Vice President of Investor Relations. Please go ahead, sir. Ashish Saran: Thank you, and good afternoon, everyone. Welcome to Marvell's first quarter fiscal year 2026 earnings call. Joining me today are Matt Murphy, Marvell's Chairman and CEO, and Willem Meintjes, our CFO. Let me remind everyone that certain comments made today include forward-looking statements that are subject to significant risks and uncertainties that could cause our actual results to differ materially from management's current expectations. Please review the cautionary statements and risk factors contained in our earnings press release, which we filed with the SEC today and posted on our website, as well as our most recent 10-K and 10-Q filings. We do not intend to update our forward-looking statements. During our call today, we will refer to certain non-GAAP financial measures. A reconciliation between our GAAP and non-GAAP financial measures is also available in our earnings press release. Let me now turn the call over to Mat

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