Marvell reported a record QQ1 2026 revenue of $1.895 billion, up 63% year over year and 4% quarter over quarter, led by AI-driven data center demand. Data center revenue of $1.44 billion accounted for 76% of total revenue, with year-over-year growth of 76% and continued sequential expansion. The results reflect a meaningful shift toward AI-centric workloads and a broadening custom silicon program.
Management highlighted strong progress in custom AI XPUs, including three-nanometer production readiness for calendar 2026, and announced strategic integrations such as NVIDIA’s NVLink Fusion, multi-die packaging, and co-package optics. The company also advanced its interconnect and optical roadmap (PAM, DCI, 400G per lane PAM, and 1.6T/800G capabilities), positioning Marvell to monetize the AI and cloud scale-out cycle through higher-value, differentiated silicon and packaging solutions. Marvell completed the quarter with a solid balance sheet and aggressive capital allocation, including stock repurchases of $340 million and a $52 million cash dividend, while guiding to roughly $2.0 billion in revenue for Q2.
Looking ahead, management reiterated AI’s growing contribution to the data center and signaled multi-year, multi-program revenue prospects in custom XPUs for hyperscalers. The company expects continued margin expansion and robust cash generation, supported by a disciplined approach to capital deployment and ongoing portfolio optimization (including the Infineon automotive Ethernet divestiture). Key risks include macroeconomic uncertainty and semiconductor cycle timing, though the company’s roadmap and customer engagements provide multiple avenues for sustained growth through fiscal 2027 and beyond.