Marvell Technology (NASDAQ: $MRVL), a company that designs, develops, and sells integrated circuits (ICs), released its Q4 fiscal 2025 results on Wednesday, March 5, 2025, after markets closed. Here is a deep dive into the Q4 results and why the stock sank by double digits.
Marvell Technology Q4 Results
For the fourth quarter of fiscal 2025, Marvell Technology reported a 27% YoY increase in revenue to $1.82 billion, beating estimates of $1.80 billion by 1.2%. Q4 adjusted EPS came in at $0.60 on a non-GAAP net income of $531.4 million, beating estimates of $0.59
Other Q4 Highlights
It reported a GAAP operating margin of 12.9% in Q, up from -2.3% the previous year, and a non-GAAP operating margin of 33.7%, compared to 33.8% the previous year. Marvell Technology reported a GAAP gross margin of 50.5%, up from 46.6% the previous year, and a non-GAAP gross margin of 60.1%, compared to 63.9% the previous year. It ended the quarter with $514 million in cash flow from operations.
Full-Year Highlights
For the full year, Marvell Technology reported a revenue of $5.77 billion, compared to $5.51 billion last year. The adjusted EPS came in at $1.57, compared to $1.51 the previous year.
Q1 Fiscal 2026 Outlook
For the first quarter of fiscal 2026, Marvell Technology expects revenue of $1.875 billion +/- 5%, and an adjusted EPS of $0.56 to $0.66. Both revenue and adjusted EPS estimates were in line with analysts’ forecasts.
It expects a GAAP gross margin of 50.5% and a non-GAAP gross margin of 60%. GAAP operating expenses are forecast at $712 million, while non-GAAP operating expenses are forecast at $490 million.
Commenting on the results, Marvell’s Chairman, and CEO Matt Murphy said their performance “was driven by strong growth in our data center end market, where revenue increased 78% year-over-year in the fourth quarter, along with a continued recovery in our multi-market businesses.”
Marvell Technology (MRVL) Market Performance
Following the release of its Q4 earnings report, and Q1 guidance, MRLV shares sank 17.85% to $74.05 during pre-market trading as of 8:07 AM EST on March 6, 2025. Over the past six months, the stock is up 28.97%, while over the past year, the stock is up 14.49% as of Wednesday’s closing price.
Based on the premarket figures, the stock has fallen below its 50- and 200-day moving averages of $109.82 and $85.51, respectively.
Analysts are optimistic about the future of MRVL shares, giving them a strong buy rating. They forecast an average price of $124.08, which is a 37.65% upside, based on Wednesday’s closing price. The analysts forecast a wide range of price targets, with a high of $188, and a low of $90.
Should You Add MRVL To Your Portfolio In 2025?
MRVL delivered some exemplary results in Q4, and first quarter guidance was in line with expectations. While that might have been impressive for other industries, the AI sector is highly competitive, and full of opportunity. As such, investors were expecting better guidance.
It is worth noting that the guidance equates to 61% YoY growth in revenue and a 154% increase in EPS at the midpoints. Consequently, MRVL is still in its high-growth phase, and the stock price could potentially recover by the end of 2025. As such, adding MRVL to your portfolio after its recent dip could potentially deliver great results in the medium and long term.
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