Live: Marvell Technology (MRVL) Q3 Earnings Coverage

Marvell’s growth sits between NVIDIA’s 62.5% revenue expansion and AMD’s 35.6% pace. NVIDIA commands 53% profit margins and 63.2% operating margins, while AMD delivers 10.3% and 13.7% respectively. Marvell’s 51.6% gross margin and 17.2% operating margin position it competitively, though GAAP profitability remains challenged by $1.36 billion in annual depreciation charges.

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Management’s forecast for over 40% full-year growth supports Marvell’s positioning as a credible AI infrastructure player, though valuation at 10.86x price-to-sales remains elevated versus AMD’s 11.17x but below NVIDIA’s 23.37x premium.

Marvell stock is now down 6.83% after hours. The company also announced more deals in a press release after earnings. Here are the key details:

Marvell paired its record Q3 print with a major strategic swing, agreeing to acquire Celestial AI in a transaction valued at about 3.25 billion dollars upfront, plus an earnout tied to ambitious revenue milestones. The target brings a Photonic Fabric platform that moves scale up connectivity from copper to optics, aimed directly at next generation multi rack AI clusters and UALink style fabrics.

Key deal terms

For investors, this is a classic Marvell move, leaning harder into AI connectivity even as it adds integration and execution risk. The muted 2 percent stock reaction suggests the market likes the strategic logic, but wants proof that Celestial’s very long dated revenue ramp and large stock component will translate into tangible EPS power by the time those FY28 and FY29 targets come into view.

Marvell delivered a textbook AI-driven acceleration quarter with upside to revenue, EPS, and forward growth expectations. The slight stock drop reflects near-term concerns about margin mix, integration noise from the Celestial AI deal, and a very high bar going into the print. Fundamentally, the long-term AI story strengthened, not weakened.

Shares are now down 4.46% after-hours. Here is the updated guidance for Marvell:

Guidance confirms sustained AI-driven growth into FY26, though gross margin implies some mix pressure from product transitions and the Celestial integration.

What Changed This Quarter

• Q3 revenue hit a new record and exceeded guidance midpoint.
• Q4 revenue and EPS guides both moved higher versus consensus.
• Data center mix held at 73 percent, slightly below whisper levels calling for an uptick.
• Gross margin outlook slightly softer due to product mix and integration expenses.
• The Celestial AI acquisition adds a new vector of long-term upside but introduces near-term expense load.
• Enterprise networking and carrier both posted strong sequential growth, validating the recovery theme from the preview.

“Marvell delivered record revenue driven by strong data center demand. We are guiding for robust growth in Q4 with full-year revenue growth expected to exceed 40 percent. Demand continues to accelerate and our data center growth forecast for next year is higher than prior expectations. I am also excited to announce the acquisition of Celestial AI which accelerates our scale-up roadmap for interconnect.”

CEO Matt Murphy

This commentary reinforces Marvell’s core AI thesis: expanding data center share, accelerating AI interconnect demand, and transformative optical attach opportunities. The Celestial deal signals Marvell intends to compete aggressively in next-gen scale-up fabrics.

Despite beating on EPS and revenue, share are down 2%.

Marvell posted a clean double beat, delivered record revenue, and guided Q4 above expectations on both revenue and EPS. Yet shares are trading lower as investors focus on the Celestial AI acquisition, slightly softer data center mix vs expectations, and gross margin guidance that ticks down modestly next quarter.

Marvell enters earnings trading at a premium AI-infrastructure multiple, supported by one of the clearest long-term growth runways in semiconductors. EPS is expected to grow +78.5% in FY26 and another +20.5% in FY27, according to Yahoo Finance estimates.

Investors will focus on the pacing of custom silicon ramps, the durability of optics strength, and the recovery trajectory of networking and carrier infrastructure. With data center representing 74% of revenue and expanding, sentiment hinges on whether Marvell continues to convert its large AI design-win pipeline into revenue at the rate implied by its 20% long-term share target.