Marvell Technology (MRVL) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue was $1.273 billion, down 5% year-over-year but up 10% sequentially, exceeding guidance midpoint, driven by record data center growth from AI and electro-optics.

• Data center revenue reached $881 million, up 92% year-over-year and 8% sequentially, offsetting declines in other segments.

• GAAP net loss was $193.3 million (loss per share of $0.22); non-GAAP net income was $266.2 million (EPS $0.30), up 25% sequentially.

• All end markets are expected to grow sequentially in Q3, with data center AI custom silicon as the primary growth driver.

• Strategic focus has shifted toward high-ROI AI and accelerated infrastructure opportunities, expanding TAM and accelerating new product releases.

Financial highlights

• Q2 revenue: $1.273 billion, down 5% year-over-year, up 10% sequentially; GAAP gross margin: 46.2%; non-GAAP gross margin: 61.9%.

• GAAP operating margin: -7.9%; non-GAAP operating margin: 26.1%.

• Cash flow from operations: $306 million in Q2; $630.9 million for six months.

• Cash and cash equivalents: $808.7 million at quarter end; total debt: $4.2 billion.

• $175 million in stock repurchases and $51.9 million in dividends returned to shareholders in Q2.

Outlook and guidance

• Q3 revenue guidance: $1.45 billion ±5%, representing 14% sequential growth at midpoint.

• GAAP gross margin expected at 47.2%; non-GAAP gross margin at ~61%.

• Non-GAAP EPS guidance: $0.35–$0.45, projecting 33% sequential growth at midpoint; Q3 non-GAAP EPS at $0.40 ± $0.05.

• All end markets forecasted to return to sequential growth in Q3, with data center revenue projected to grow in the high teens percentage.

• Non-GAAP tax rate to rise to 9% in FY26 due to expected operating income increase.