Marvell Tech Surpasses Earnings Estimates, Revenue Grows Year-Over-Year

Marvell Technology's Strong Q3 Performance and Outlook

Marvell Technology, Inc. (MRVL) delivered a strong performance in its third quarter of fiscal 2026, with earnings per share (EPS) of 76 cents, surpassing the Zacks Consensus Estimate by 1.3%. This marks a significant improvement from the previous year’s earnings of 43 cents per share, representing a 76.7% year-over-year increase.

The company also exceeded revenue expectations, reporting $2.08 billion in revenues for the quarter, which was 0.61% above the Zacks Consensus Estimate. This reflects a 36.8% year-over-year growth, driven primarily by robust performance in the data center segment and continued recovery in enterprise networking and carrier infrastructure markets.

Segment Performance Highlights

Marvell’s top-line growth was supported by impressive performances across all segments, with each showing sequential improvements. The data center segment, which remains the company’s largest end market, reported revenues of $1.52 billion, up 37.8% year over year and 1.8% sequentially. This segment accounted for 73.2% of total revenues, underscoring its critical role in Marvell’s success.

Enterprise networking revenues rose 57% year over year and 23% sequentially to $237.2 million, or 11.4% of total revenues. This growth was largely attributed to the normalization of inventory levels. Carrier infrastructure revenues also saw a significant increase, rising 98% year over year and 29% sequentially to $167.8 million, or 8.1% of total revenues, as demand recovered among carrier customers.

On the other hand, automotive/industrial revenues declined 58% year over year and 54% sequentially to $35 million, primarily due to the divestiture of the Automotive Ethernet business and ongoing weakness in the industrial segment. Consumer revenues grew 21% year over year and 1% sequentially to $116.6 million, or 6% of total revenues.

Operating Performance and Guidance

Marvell’s non-GAAP gross profit reached $1.24 billion in the third quarter, a 35% increase from the prior year. The non-GAAP gross margin expanded to 59.7%, reflecting improved efficiency. Non-GAAP operating expenses were $485 million, compared to $466.9 million in the same quarter last year and $492.6 million in the previous quarter. The non-GAAP operating margin improved to 36.3%, demonstrating stronger cost management.

Looking ahead, Marvell has issued strong revenue guidance for the fourth quarter, expecting revenues to be $2.20 billion, with a range of +/- 5%. This is well above the Zacks Consensus Estimate of $2.15 billion, indicating an expected 18.52% year-over-year improvement. The company also projects a non-GAAP gross margin of 58.5-59.5% and non-GAAP operating expenses of approximately $515 million.

For the fourth quarter, Marvell expects non-GAAP EPS to be $0.79, with a range of +/- $0.05. This compares favorably to the Zacks Consensus Estimate of 75 cents, signaling a 74.4% year-over-year improvement.

Zacks Rank and Other Stocks to Consider

Currently, Marvell Technology holds a Zacks Rank of #2 (Buy), reflecting positive analyst sentiment. In the broader Zacks Computer & Technology sector, several other stocks are worth considering, including Advanced Energy Industries (AEIS), Allot (ALLT), and Amphenol (APH), all of which carry a Zacks Rank of #1 (Strong Buy).

Advanced Energy Industries has seen a 77.7% surge in its stock price over the past six months. The Zacks Consensus Estimate for its 2025 earnings is $6.23 per share, up 9.6% over the last 30 days, suggesting a 67.92% increase from the previous year’s figure.

Allot shares have risen 7.7% in the last six months, with its 2025 earnings estimate increasing by 57.1% to 22 cents per share, indicating a 450% year-over-year growth.

Amphenol shares have gained 54.4% over the past six months, with its 2025 earnings estimate climbing 2.17% to $3.29 per share, marking a 74.07% increase from the year-ago quarter.

These stocks, along with Marvell, represent compelling opportunities for investors seeking growth in the technology sector.