Marvell Technology Stock Earnings Reports

Key points for investors: Marvell reported strong Q3 FY2025 results with revenue of $1.516B (7% YoY, 19% sequentially), beating guidance by ~$66M. Non‑GAAP EPS was $0.43, up 43% sequentially, demonstrating significant operating leverage. Data center revenue reached a record $1.1B (98% YoY, 25% sequentially) and now represents 73% of consolidated revenue, driven by a rapid ramp of custom AI silicon and robust optics demand. Management announced a multi‑generational five‑year strategic agreement with AWS that expands Marvell’s role across custom AI chips, optical DSPs, AECs, retimers, switching silicon and EDA-in-the-cloud collaboration — expected to increase future volume materially. Marvell highlighted continued product momentum: shipments of 1.6T PAM DSPs (including first 5nm shipments), announcement of a 3nm 1.6T DSP to lower module power >20%, progress on a broad 2nm platform, and multiple AEC and switching ramps. The company took an aggregate restructuring charge (~$750M) to reallocate R&D and investments toward data center — about 75% non‑cash and largely behind them — which drove a GAAP loss in the quarter but leaves the business positioned for higher-margin growth. Q3 cash from operations was $536M; inventory $859M; cash $868M; total debt $4.1B. Share repurchases totaled $200M in Q3 (YTD $525M) and an additional $3B repurchase authorization was previously approved. Q4 FY2025 guidance: revenue ~$1.8B ±5% (midpoint implies strong YoY acceleration), non‑GAAP gross margin ~60%, GAAP gross margin ~50%; non‑GAAP EPS guide $0.54–$0.64 and GAAP EPS $0.11–$0.21. Management reiterated expectation to return to GAAP profitability in Q4 and sees a strong setup for FY2026 driven by full‑year custom AI ramps, optics growth, switching, and AEC volume. Key investor takeaways: rapid AI/custom silicon traction is materially reshaping revenue mix and margin profile, the AWS agreement materially de‑risks and scales a large customer relationship, the restructuring explains near‑term GAAP charges while reorienting investment to the highest‑growth, higher‑margin data center opportunity, and cash flow plus buybacks remain priorities.