Marvell Technology (MRVL) Q3 2025 earnings summary

Executive summary

• Q3 FY25 revenue reached $1.516B, up 19% sequentially and 7% year-over-year, surpassing guidance midpoint by $66M, driven by strong AI and custom silicon demand.

• Data center revenue was $1.1B, up 98% year-over-year and 25% sequentially, now 73% of total revenue.

• Non-GAAP EPS was $0.43, up 43% sequentially, while GAAP net loss was $676.3M ($0.78 per share), reflecting significant restructuring charges.

• Announced a multi-year, multi-generational strategic agreement with AWS for custom AI and networking silicon.

• Major restructuring in Q3 led to $715M in charges, mainly non-cash, to focus R&D on data center growth.

Financial highlights

• Q3 revenue: $1.516B (+19% sequential, +7% year-over-year), exceeding guidance midpoint.

• Non-GAAP gross margin: 60.5%; GAAP gross margin: 23.0%, impacted by restructuring and impairment charges.

• Non-GAAP operating margin: 29.7%; GAAP operating margin: -46.4%.

• Non-GAAP EPS: $0.43 (+43% sequential); GAAP loss per share: $0.78.

• Cash and cash equivalents: $868M at quarter end; cash flow from operations: $536M.

Outlook and guidance

• Q4 FY25 revenue guidance: $1.8B ±5%, implying 26% year-over-year and 19% sequential growth at midpoint.

• Q4 non-GAAP gross margin expected at ~60%; GAAP gross margin at ~50%.

• Q4 non-GAAP EPS guidance: $0.54–$0.64 or $0.59 ± $0.05; GAAP EPS: $0.11–$0.21 or $0.16 ± $0.05.

• Data center expected to drive Q4 growth; enterprise and carrier segments forecasted to grow mid-teens percentage sequentially.

• Expect to return to GAAP profitability in Q4.