Marvell FY25Q4 corresponds to actual calendar months Nov/Dec 2024 and Jan 2025.
Marvell FY25Q4 Results:
Revenue $1.817B, up 27% year over year, up 20% sequentially, third consecutive quarter of sequential growth; full-year revenue $5.767B, up 5% year over year;
GAAP gross margin 50.5%, up 3.9 percentage points year over year; Non-GAAP gross margin 60.1%, down 3.8 percentage points year over year, down 0.4 percentage points sequentially;
Non-GAAP operating income $613M, up 27% year over year; Non-GAAP operating margin 33.7%, down 0.1 percentage points year over year, up 4 percentage points sequentially;
Non-GAAP net income $531M, up 32% year over year; Non-GAAP net margin 29.2%; full-year Non-GAAP net income $1.377B, up 5% year over year;
GAAP days in inventory 104 days, up 37 days sequentially;
$200M in share repurchases and $52M in dividends this quarter;
By Business, Q4:
Data center revenue $1.366B, up 79% year over year, revenue share 75%, a new high;
Driven primarily by two custom silicon programs ramping (Amazon Tranium2 XPU + Google Axion CPU); optical products and Teralynx switch revenue both grew double-digits sequentially; 800G PAM and 400G ZR DCI demand strong; industry's first 5nm 1.6T PAM DSP began shipping; next-gen 3nm 1.6T PAM DSP expected to enter volume production in H2; 800G remains the volume leader in 2025; data center AI revenue now exceeds 50% of data center revenue, with optical products and custom silicon each accounting for 50% (~$700M each, versus Broadcom's ~$2.5B custom silicon revenue in the same quarter);
Expect custom XPU silicon revenue to continue growing in 2025 and 2026; third customer Microsoft custom XPU silicon program slated for 2026 production; Amazon next-gen XPU also actively engaged (though not necessarily Tranium3);
Enterprise networking revenue $171M, down 35% year over year, revenue share 9%; carrier revenue $106M, down 38% year over year, revenue share 6%; enterprise networking and carrier markets continue to recover slowly;
Consumer revenue $89M, down 38% year over year, revenue share 5%; expect consumer market annualized revenue around $300M going forward;
Automotive/industrial revenue $86M, up 4% year over year, revenue share 5%;
Outlook:
Guiding Q1 data center revenue up mid-single-digits sequentially (~$1.4B, ~49% of Intel data center revenue, ~40% of AMD data center revenue, ~33% of Broadcom AI revenue); cloud/AI portion up double-digits (10%+) sequentially; on-prem portion down seasonally;
Guiding Q1 carrier and enterprise networking combined revenue up 10% sequentially;
Guiding Q1 automotive/industrial revenue down high-single-digits sequentially; automotive up sequentially, industrial down sequentially;
Guiding Q1 consumer revenue down 35% sequentially;
Full-year 2024 AI revenue significantly exceeded the $1.5B target; guiding full-year 2025 AI revenue significantly above $2.5B target (Wall Street complained: management implies a large beat, so why not raise the number? Even AMD's approach of raising AI revenue guidance by $500M per quarter would be better);
Overall, Marvell's custom silicon story continues to deliver, with two consecutive quarters of ramp; management remains optimistic on future growth but refuses to raise specific guidance, and unlike its largest competitor Broadcom, declines to paint multi-year pictures for 2026-2027.
After two quarters of custom silicon ramp, Non-GAAP net margin is trending toward 30%; combined with prior forecasts, 2025 Non-GAAP net income ~$2.6B, implying ~24x P/E at the post-selloff market cap.