Marvell Technology, Inc. Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Marvell reported record revenue of $2.006 billion, up 6% sequentially and 58% year-over-year (compared to Q2 FY2025).
  • Data center remained the primary growth driver, representing 74% of total revenue.
  • Non-GAAP EPS reached a record $0.67, up 123% year-over-year.
  • Operating cash flow was $462 million, up from $333 million in the prior quarter.
  • Non-GAAP operating margin expanded to 34.8%, up 870 basis points year-over-year.
  • AI continued to drive Marvell’s business mix, with data center now accounting for three quarters of total revenue.

Major Strategic Updates

  • Completed the divestiture of the automotive Ethernet business for $2.5 billion in cash, ahead of schedule.
  • Proceeds increase flexibility for stock repurchases and further AI-focused investments.
  • Beginning next quarter, Marvell will consolidate end markets into 2 categories: Data Center and Communications & Other.
  • AI and cloud remain the company’s top priority, reflected in leadership promotions and organizational consolidation.

End Market Performance

Data Center
  • Record revenue: $1.49 billion, up 3% sequentially and 69% year-over-year.
  • AI and cloud workloads accounted for over 90% of data center revenue.
  • Electro-optics revenue expected to grow double digits sequentially in Q3.

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Operator: Good afternoon, and welcome to the Marvell Technology Inc. Second Quarter of Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I will now turn the conference over to Mr. Ashish Saran, Senior Vice President of Investor Relations. Thank you. You may begin. Ashish Saran: Thank you, and good afternoon, everyone. Welcome to Marvell's Second Quarter Fiscal Year 2026 Earnings Call. Joining me today are Matt Murphy, Marvell's Chairman and CEO; Willem Meintjes CFO; Chris Koopmans, President and COO; and Sandeep Bharathi, President, Data Center Group. Let me remind everyone that certain comments made today include forward-looking statements, which are subject to significant risks and uncertainties and 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 available in our earnings press release. Let me now turn the call over to Matt for his comments on the quarter. Matt? Matthew J. Murphy: Thanks, Ashish, and good afternoon, everyone. For the second quarter of fiscal 202

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