Q2 2026 Marvell Technology Inc Earnings Call Transcript
Key Points
- Marvell Technology Inc (MRVL) delivered record revenue of $2.006 billion, reflecting a 6% sequential increase and a strong 58% year-over-year growth.
- The data center end market showed robust performance, growing 69% year-over-year, driven by strong AI demand.
- Non-GAAP operating margin expanded by 870 basis points year-over-year to 34.8%, with record non-GAAP earnings per share of $0.67, up 123% year-over-year.
- The company generated $462 million in operating cash flow, significantly up from $333 million in the first quarter, enabling substantial capital returns to stockholders.
- Marvell Technology Inc (MRVL) completed the divestiture of its automotive ethernet business in a $2.5 billion all-cash transaction, providing flexibility for stock repurchase and technology platform enhancement.
- The custom business is expected to experience non-linear growth, with a weaker third quarter before a stronger fourth quarter.
- Supply chain constraints remain tight, requiring strong coordination and execution to meet customer demands.
- The divestiture of the automotive ethernet business will reduce revenue from non-data center end markets.
- The company faces challenges in managing the lumpiness of the custom business, particularly with large hyperscale builds.
- There is ongoing noise and controversy in the market regarding Marvell's 3-nanometer XPU programs and competition.
Good afternoon, and welcome to the Marvell Technology Inc second quarter of fiscal year 2026 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded. I will now turn the conference over to Mr. Ashish Saran, Senior Vice President of Investor Relations. Thank you, you may begin.
Thank you, and good afternoon, everyone. Welcome to Marvell's Second Quarter Fiscal Year 2026 Earnings Call. Joining me today are Matt Murphy, Marvell's Chairman and CEO; Willem Meintjes, CFO; Chris Koopmans, President and COO; and Sandeep Bharathi, President, Data Center Group.
Let me remind everyone that certain comments made today include forward-looking statements, which are subject to significant risks and uncertainties and that could cause our actual results to differ materially from management's current expectations. Please review the cautionary statements and risk factors contained in our earnings press release, which we filed with the SEC today and posted
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