Q3 FY2026 total revenue of $2.075B (record), up 3% QoQ and 37% YoY; above midpoint guidance (prepared). Data center segment $1.52B (record), up 2% QoQ, +38% YoY; grew faster than guided due to networking strength (CEO). Communications & Other $557M, up 8% QoQ, +34% YoY; ex-divested Auto Ethernet, ~20% QoQ, ~50% YoY (CEO).
Non-GAAP gross margin 59.7%, up 30 bps QoQ (CFO). Non-GAAP operating margin 36.3%, up 150 bps QoQ (CFO). Non-GAAP EPS $0.76, above midpoint by $0.02; +77% YoY (CFO).
Record operating cash flow $582M, up ~$121M QoQ (CFO). Inventory $1.01B, down $37M QoQ (CFO). Total debt $4.5B; net debt-to-EBITDA 0.58x (CFO). Cash & equivalents $2.7B (CFO).
Share repurchases: Executed $1B accelerated repurchase + $300M ongoing buyback; returned $51M dividends in Q3 (CFO).
Fiscal 2027 outlook: Data center revenue expected to grow >25% YoY (ex-Celestial AI). Interconnect segment (half data center rev) to grow faster than cloud CapEx; custom (1/4 data center rev) to grow at least 20% YoY; remaining (storage, switching, other) to grow at least 15% YoY (CEO). Communications & Other expects 10% YoY revenue growth (CEO).
Celestial AI acquisition: Photonic fabric for scale-up interconnect. First-gen PF chiplet delivers 16 Tbps bandwidth per chiplet (10x 1.6T ports). Design win with major hyperscaler for next-gen architecture. Revenue expected to begin H2 FY2028; annualized run rate $500M by Q4 FY2028, $1B by Q4 FY2029 (CEO). Adds ~$50M annual OpEx post-close; funded via stock & cash; no additional debt (CFO).
Switch business: FY2026 revenue to exceed $300M; FY2027 to surpass $500M. 51.2T products shipping; 100T product to be introduced next year. Scale-up UALink 115T and 57T solutions on track to sample H2 FY2027 (CEO).
Custom XPU attach: >15 wins; line-of-sight to >$2B revenue by FY2029 from NIC and CXL use cases. 5 CXL sockets won across 2 Tier-1 US hyperscalers; first CXL design entering volume production now (CEO).
AEC & retimer: Revenue aggregate to more than double from FY2026 to FY2027 (CEO). PCIe Gen6 retimers designed into >10 sockets; production expected H2 FY2027 (CEO).
Official Guidance
Metric
FY Q4 2026 Guidance
FY 2027 Outlook
Revenue
$2.2B ±5% (midpoint) (CFO)
Data center >25% YoY; total company growth implied strong (CEO)
Non-GAAP Gross Margin
58.5%–59.5% (CFO)
—
Non-GAAP OpEx
~$515M (CFO)
~half the rate of revenue growth (CFO)
Non-GAAP EPS
$0.74–$0.84 (CFO)
—
Non-GAAP Tax Rate
10% (CFO)
~12% (CFO)
Diluted Shares
857M (CFO)
—
Mgmt Quotes
Matt Murphy (CEO): "Momentum in our data center business remains strong with revenue growing 38% year-over-year, fueled by robust AI demand."
Matt Murphy (CEO): "We now expect Marvell's data center revenue to grow year-over-year by more than 25% next fiscal year."
Matt Murphy (CEO): "Celestial AI's photonic fabric technology platform was purpose-built for this inflection... enabling a true optical solution with greater than 2x the power efficiency of copper interconnects."
Willem Meintjes (CFO): "We drove a 150 basis point sequential increase in non-GAAP operating margin... demonstrating the significant operating leverage in our model."
Willem Meintjes (CFO): "Net debt-to-EBITDA ratio of 0.58x... our debt ratios have continued to improve as we have driven an increase in our EBITDA."
Prepared Metrics
Metric
Value
Speaker/Context
Total Revenue (Q3 FY2026)
$2.075B (record)
(prepared)
Data Center Revenue (Q3)
$1.52B (record)
(CEO)
Communications & Other Revenue (Q3)
$557M
(CEO)
GAAP Gross Margin (Q3)
51.6%
(CFO)
Non-GAAP Gross Margin (Q3)
59.7%
(CFO)
Non-GAAP Operating Margin (Q3)
36.3%
(CFO)
Non-GAAP EPS (Q3)
$0.76
(CFO)
Operating Cash Flow (Q3)
$582M (record)
(CFO)
Inventory (Q3 End)
$1.01B
(CFO)
Total Debt (Q3 End)
$4.5B
(CFO)
Cash & Equivalents (Q3 End)
$2.7B
(CFO)
Q&A Batch (1-5 of 8)
Q1 — Ross Seymore
Topic: Fiscal 2027 revenue guidance and long-term trajectory to fiscal 2029
Key points:
Analyst infers ~$10B revenue for next year; mgmt confirms "absolutely in the ballpark" and calls it a "motivational target" based on organic plan, no M&A.
Sequential revenue growth expected every quarter in fiscal 2027, with second half stronger than first; exit rate into fiscal 2027 is "really compelling."
Custom business: quadrupled from CY23→CY24, doubled from FY24→FY25, up ~20% in FY27; then in FY28 custom is expected to double off FY27 (reacceleration).
Interconnect (optics) expected to continue outgrowing CapEx; base case assumes 20% CapEx growth in FY28, optics grows above that; customer forecasts support "much higher."
Storage/switch/other data center: assume 10% growth in FY28 over FY27.
Bottom-up data center growth: ~45% in FY26, ~25% in FY27, ~40% in FY28; over cycle from CY23 that's ~50% CAGR.
Plugging comms/other at GDP for FY28 gives Marvell ~30% growth in FY28.
Mgmt stance: Bullish — mgmt explicitly optimistic, sees strong multiyear trajectory with Celestial AI kicking in FY28→FY30.
Q2 — Harlan Sur
Topic: Sub-3nm design win pipeline (3nm→2nm XPU) and ramp timeline
Key points:
Lead AI customer's 3nm XPU product: mgmt has secured purchase orders for entirety of next year; product transition from current to next XPU is baked into all numbers given.
2nm programs: "a number of programs" being worked on; 2nm will be a "workhorse process technology"; power savings are compelling and save real OpEx dollars.
Design funnel keeps increasing; strong product ramps coming, especially in fiscal 2028 where some 2nm products will start ramping.
Team executing well on core IP, nodes, packaging.
Mgmt stance: Bullish — heads-down execution, strong pipeline, and visibility into multiyear ramps.
Q3 — Tore Svanberg
Topic: Celestial AI revenue targets ($500M and $1B) — scope of products
Key points:
Revenue targets and earnout are based on Celestial AI in totality (not just PF Link).
Lead product is the PF chiplet, which will go first; revenue build is driven more from PF chiplet side.
Timing: end of fiscal 2028 and end of fiscal 2029.
Mgmt stance: Neutral/bullish — targets are for total Celestial, with PF chiplet as primary near-term driver.
Q4 — Christopher Caso
Topic: Celestial AI revenue breadth and customer diversification
Key points:
Engagement is "certainly broad," but bringing product to volume production requires "real big companies and a few of them."
One Tier 1 hyperscaler is engaged as a "great partner and teaching customer."
Marvell has strong internal silicon photonics organization (from Inphi) that pioneered 100G/400G/800G ZR DCI; Celestial team will benefit from common learnings.
Beyond first wave, mgmt sees "very broad adoption" beyond that time frame.
Mgmt stance: Bullish — strong lead customer and internal expertise; broad industry interest evident.
Q5 — Harsh Kumar
Topic: Custom growth rate for FY27 and visibility into long-term revenue
Key points:
Custom FY27 growth: mgmt says "definitely model the 20%" as a safe base case; it's a handful of programs today; second half exit rate is much higher than current, building momentum into FY28.
Visibility: mgmt shared base case assumptions (not "dream the dream"); custom FY28 doubling is based on known programs; optics growing above 20% CapEx; switching/storage also has upside.
Customer planning requires visibility several years out (6–8 quarters for R&D, capacity, ramps), giving mgmt increased confidence.
Celestial AI kicks in beyond FY27 time frame (some in FY28, then FY29/30+).
Mgmt stance: Bullish — mgmt comfortable providing multiyear outlook due to customer visibility and rational bottoms-up assumptions.