Analyst(s): Olivier Blanchard
Publication Date: June 3, 2025
Marvell’s latest earnings reflect continued strength in custom silicon and electro-optics, highlighting momentum in AI-driven data center infrastructure. Gains across enterprise networking, carrier, and consumer segments supported the top line, though gross margin was impacted by product mix.
What is Covered in this Article:
- Marvell’s Q1 FY 2026 financial results
- Record data center revenue driven by custom silicon ramp and electro-optics
- Progress on multi-generational custom XPU programs with leading hyperscalers
- Expansion of optical and interconnect solutions showcased at OFC 2025
- Strategic packaging and NVLink integration supporting long-term AI positioning
- Q2 FY 2026 guidance and factors influencing investor sentiment
The News: Marvell Technology, Inc. (NASDAQ: MRVL) reported its Q1 FY 2026 results, with revenue reaching a record $1.9 billion (+0.9% above consensus), up 63% year-on-year (YoY) and $20 million above the mid-point of guidance. Data center revenue rose 76% YoY to $1.4 billion. Enterprise networking (+16% YoY), carrier infrastructure (+93% YoY), and consumer (+50% YoY) segments all posted solid growth, while automotive/industrial declined 2% YoY. Non-GAAP gross profit increased to $1.1 billion from $$724 million in the prior year, and the corresponding margin came in at 59.8% (Q1 FY 2025: 62.4%), slightly below consensus of 60%. Non-GAAP earnings per share (EPS) were $0.62, up from $0.24 in the prior year and 1.1% above consensus estimates.
“As the industry continues to move toward building custom AI infrastructure, Marvell is uniquely positioned at the center of this transformation,” said Matt Murphy, Chairman and CEO of Marvell. “We see our custom silicon business driving strong growth in the second quarter and beyond.”
Marvell Q1 FY 2026 Results Driven by Custom Silicon and Data Center Momentum
Analyst Take: Marvell’s latest results reflect ongoing execution in scaling its AI-focused custom silicon and interconnect solutions. With custom silicon programs entering volume production, growing traction in optical platforms, and broader hyperscaler engagement underway, the company remains positively aligned with long-term AI infrastructure demand.
Meanwhile, Marvell continues to expand its competitive moat across data center architectures with multi-die packaging, NVLink integration, and high-bandwidth memory, positioning well against the core needs of future AI server designs.
Custom Silicon and XPU Ramp Fuel Revenue Growth
A highlight of Marvell’s Q1 FY 2026 performance was record revenue from its data center segment. This appears to reflect the growing scale of the custom AI silicon program pipeline: Programs are now in high-volume production for a leading US hyperscaler, already scheduled for a 3nm follow-up in calendar 2026, with next-gen architecture development underway. This momentum is not isolated: Marvell is also progressing on a second custom XPU engagement, further supporting the validity of the company’s custom silicon strategy, which focuses on long-term, multi-generational design cycles.
With AI-driven revenue already accounting for the largest portion of its data center business, its custom silicon pipeline expanding, and strong engagement across hyperscalers, Marvell looks solidly positioned for continued multi-year growth.
Electro-Optics and Interconnect Portfolio Scaling With AI Cluster Demand
Growth in Marvell’s interconnect business remains a complementary driver of its AI strategy, with robust shipments of electro-optics products performing well in Q1 FY 2026. The company showcased a comprehensive portfolio at the Optical Fiber Conference (OFC) 2025, including 1.6T pluggable modules, co-packaged optics, and 400G/lane PAM solutions aimed at enabling 3.2T systems.
As cloud infrastructure shifts from copper to optical interconnects, and customer demand for improved performance in both power efficiency and bandwidth density increases, Marvell’s silicon photonics and DSP platforms continue to gain traction. (800G demand remains solid, and Marvell expects 1.6T to accelerate over the next few quarters, providing further tailwinds for interconnect revenue.) These platforms further expand Marvell’s addressable opportunity across AI server clusters and next-gen data center deployments.
Strategic Packaging and Platform Advances Support Future Pipeline
In Q1 FY 2026, Marvell also introduced a new multi-die packaging platform, now in production for a customer-specific XPU program. The platform uses Marvell-designed interposer technology to improve die-to-die connectivity, power efficiency, and yields, offering a lower-cost alternative to traditional silicon interposers. This development broadens the scope of Marvell’s custom platform, enabling more efficient scaling for future AI accelerators.
Additionally, Marvell’s integration of NVLink Fusion, through its partnership with NVIDIA, adds further flexibility to support scale-up solutions using merchant or custom XPUs. Marvell is bringing together its chiplets, optical parts, and packaging technology to offer a complete solution for building custom infrastructure for hyperscaler customers. These technology-led differentiators support customer stickiness and help futureproof Marvell’s position in AI systems design.
Guidance and Final Thoughts
Marvell guided for Q2 FY 2026 revenue of $2 billion (in line with consensus) at the midpoint, implying 57% YoY growth and another record quarter. Non-GAAP EPS is expected in the range of $0.62 to $0.72, with non-GAAP gross margin between 59% and 60%. The company also expects continued strength in custom silicon and electro-optics, with AI infrastructure momentum carrying into the H2 FY 2026. With Q1 results and Q2 outlook not beating consensus meaningfully – now a baseline expectation for high-growth AI names – investor sentiment may remain cautious. Still, Marvell’s strong execution, expanding custom silicon pipeline, and disciplined capital deployment reinforce confidence in its long-term growth trajectory.
See the full press release on Marvell’s Q1 FY 2026 earnings on the Marvell website.
Disclosure: Futurum is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum as a whole.
Other insights from Futurum:
Marvell Q4 FY 2025 Reports 27% Revenue Growth, AI Custom Chips Drive Momentum
OFC 2025: Marvell Interconnecting the AI Era
Marvell Unveils CPO Innovations Prepared to Drive XPU Architecture Breakthroughs
Author Information
Olivier Blanchard is Research Director, Intelligent Devices. He covers edge semiconductors and intelligent AI-capable devices for Futurum. In addition to having co-authored several books about digital transformation and AI with Futurum Group CEO Daniel Newman, Blanchard brings considerable experience demystifying new and emerging technologies, advising clients on how best to future-proof their organizations, and helping maximize the positive impacts of technology disruption while mitigating their potentially negative effects. Follow his extended analysis on X and LinkedIn.
