Marvell Q1 2025 Results: Data Center Revenue Soars 87% but Overall Loss Widens to $215.6M

Highlights from Marvell Technology's Q1 2025 Earnings

• Marvell Technology experienced a significant 87% increase in revenue from its data center segment, propelled by AI-related products.
• Despite this growth, declines across other business units led to an overall revenue drop and a loss exceeding analyst expectations.
• Company forecasts signal a rebound in non-data center divisions in the latter half of 2025.
• Shares declined by 6.7% following earnings release.

In its Q1 fiscal 2025 report, Marvell Technology (MRVL) revealed that an impressive surge in data center revenue to $816.4 million, largely fueled by AI product demand, fell short of offsetting revenue declines in other segments. Total quarterly revenue stood at $1.16 billion, slightly surpassing the $1.15 billion consensus, but down from $1.32 billion year-over-year.

The company posted a net loss of $215.6 million (25 cents per share), wider than the anticipated $196.6 million loss (20 cents per share) and an increase from $168.9 million loss in the same quarter last year.

AI-Driven Growth Insufficient to Counterbalance Segment Declines

While data center revenue soared by 87% year-over-year, other divisions faced declines ranging between 13% and 75%, hampering overall financial performance. Marvell had previously cautioned that Q1 results might disappoint but expected improvement in the second half of 2025.

CEO Matt Murphy stated, "We anticipate an 8% sequential revenue increase in Q2, driven by ramping custom AI silicon production. The latter half of fiscal 2025 looks promising with continued data center expansion and recovery in enterprise networking and carrier infrastructure."

Supporting this outlook, Jefferies analysts raised their price target for Marvell shares from $85 to $90, highlighting expected recoveries in non-AI business segments complementing strong AI-driven growth.

For Q2, Marvell projects revenue near $1.25 billion (±5%) and a loss per share ranging from 15 to 25 cents. Analyst estimates stand at $1.22 billion revenue with a 16-cent loss per share.

Following the earnings announcement, Marvell’s stock declined 6.7% to $71.74 as of Friday morning trading.

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