Marvell Technology reported record revenue of $2.006 billion for its second quarter of fiscal 2026, marking a 58% increase from a year earlier. GAAP net income reached $194.8 million, or $0.22 per diluted share, while non-GAAP net income stood at $585.5 million, or $0.67 per diluted share. Operating cash flow for the quarter totaled $461.6 million. Gross margin came in at 50.4% on a GAAP basis and 59.4% on a non-GAAP basis.
CEO Matt Murphy attributed the results to strong demand for custom silicon and electro-optics products in AI infrastructure, along with accelerating recovery in enterprise networking and carrier markets. He highlighted that Marvell is now engaged in more than 50 custom AI design opportunities across over 10 customers, describing it as the company’s busiest pipeline ever.
For the third quarter of fiscal 2026, Marvell projects revenue of $2.06 billion, plus or minus 5%, with GAAP gross margin between 51.5% and 52% and non-GAAP gross margin between 59.5% and 60%. The company noted that its outlook reflects the August 14, 2025 divestiture of its Automotive Ethernet business. Non-GAAP EPS is expected to be $0.74 +/- $0.05, while GAAP EPS is expected to be $2.03 +/- $0.05.
• Q2 revenue: $2.006 billion, up 58% year-over-year
• Q2 GAAP EPS: $0.22; non-GAAP EPS: $0.67
• Operating cash flow: $461.6 million
• Gross margin: 50.4% GAAP; 59.4% non-GAAP
• Q3 revenue outlook: $2.06 billion +/- 5%
• Over 50 active AI custom design opportunities across 10+ customers
Highlights of the Quarterly Investor Call
• Data center revenue hit $1.49 billion, up 69% year-over-year, led by custom XPU/attach and electro-optics products; AI and cloud accounted for over 90% of the segment.
• Marvell now counts 18 XPU and XPU attach design wins in production or ramp, with more than 50 pipeline opportunities representing $75 billion lifetime revenue potential.
• The company expects Q3 data center revenue to be flat sequentially, with strong electro-optics offsetting lumpiness in custom silicon shipments; Q4 should show stronger custom growth.
• Enterprise networking and carrier revenue combined grew 43% year-over-year, with Q3 guidance implying a strong 30% sequential increase.
• Automotive Ethernet divestiture to Infineon closed ahead of schedule for $2.5 billion cash, enabling more buybacks and increased AI-focused R&D investment.
• Leadership changes: Chris Koopmans promoted to President & COO, Sandeep Bharathi to President of the Data Center Group.
• Management reiterated goal to raise data center market share from 13% of a $33B TAM in 2024 to 20% of a $94B TAM by 2028.
Technology Platform Milestones
• Shipped 800G PAM DSPs at scale; began volume shipments of next-gen 200G per lane 1.6T DSPs.
• Demonstrated 400G per lane PAM technology, enabling future 3.2T optical interconnects.
• Showcased 6.4T silicon photonics light engines, targeting near-packaged and co-packaged optics in AI data centers.
• Developing scale-up switch silicon supporting Ethernet and UA Link fabrics for AI workloads.
• Expanded interconnect portfolio to include DSPs for active electrical (AEC) and active optical cables (AOC), plus PCIe, Ethernet, and UA Link retimers.
• 51.2T Ethernet switches ramping, positioned as a driver of switch revenue growth next fiscal year.
• Expanded collaboration with Microsoft Azure on hardware security modules.
“Marvell’s growth is being fueled by strong AI demand for our custom silicon and electro-optics products, as well as a significant increase in the pace of recovery in our enterprise networking and carrier infrastructure end markets,” said Matt Murphy, Marvell’s Chairman and CEO.
🌐 Analysis: Marvell’s Q2 results and call commentary confirm its pivot toward AI and cloud infrastructure as the company’s dominant growth engine. Its custom XPU and optics platforms position it alongside NVIDIA, Broadcom, and AMD in defining the architecture of hyperscale AI data centers. The early $2.5 billion exit from automotive Ethernet underlines its intent to concentrate capital on next-gen AI interconnects and custom silicon, areas that could reshape market share over the next three years.
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