Networking chips designer Marvell Technology (NASDAQ: MRVL) reported Q4 CY2025 results exceeding the market’s revenue expectations , with sales up 22.1% year on year to $2.22 billion. On top of that, next quarter’s revenue guidance ($2.4 billion at the midpoint) was surprisingly good and 5.2% above what analysts were expecting. Its non-GAAP profit of $0.80 per share was in line with analysts’ consensus estimates.
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Revenue: $2.22 billion vs analyst estimates of $2.21 billion (22.1% year-on-year growth, 0.5% beat)
Adjusted EPS: $0.80 vs analyst estimates of $0.79 (in line)
Adjusted EBITDA: $640.8 million vs analyst estimates of $872.7 million (28.9% margin, 26.6% miss)
Revenue Guidance for Q1 CY2026 is $2.4 billion at the midpoint, above analyst estimates of $2.28 billion
Adjusted EPS guidance for Q1 CY2026 is $0.79 at the midpoint, above analyst estimates of $0.74
Operating Margin: 18.2%, up from 12.9% in the same quarter last year
Free Cash Flow Margin: 11.7%, down from 24.4% in the same quarter last year
Inventory Days Outstanding: 118, up from 92 in the previous quarter
Market Capitalization: $68.03 billion
Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, Marvell Technology’s sales grew at an exceptional 22.5% compounded annual growth rate over the last five years. Its growth beat the average semiconductor company and shows its offerings resonate with customers, a helpful starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.
Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore’s Law) could make yesterday’s hit product obsolete today. Marvell Technology’s annualized revenue growth of 22% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong.
