v3.25.4
Income Taxes
 12 Months Ended
Jan. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The U.S. and non-U.S. components of income (loss) from continuing operations before income taxes consist of the following (in millions):
Year Ended
January 31,
2026		February 1,
2025		February 3,
2024
U.S. operations$105.9 $(402.2)$(383.3)
Non-U.S. operations2,940.7 (492.5)(375.4)
Income (loss) before income taxes$3,046.6 $(894.7)$(758.7)

The provision (benefit) for income taxes consists of the following (in millions):
Year Ended
January 31,
2026		February 1,
2025		February 3,
2024
Current income tax provision (benefit):
Federal$69.4 $30.9 $(1.0)
State2.7 0.5 (2.1)
Foreign262.2 70.8 27.0 
Total current income tax provision
334.3 102.2 23.9 
Deferred income tax provision (benefit):
Federal(19.5)(34.5)186.9 
State1.7 (2.4)4.7 
Foreign60.0 (75.0)(40.8)
Total deferred income tax provision (benefit)42.2 (111.9)150.8 
Total provision (benefit) for income taxes$376.5 $(9.7)$174.7 
The income tax expense differs from the amount computed by applying the U.S. federal statutory rate of 21% to income before income taxes as follows (in millions, except percentages):
Year Ended
January 31,
2026
U.S. federal statutory tax rate$639.821.0%
State taxes, net of federal benefit (1)4.40.1
Foreign tax effect
Singapore
Statutory tax rate difference between Singapore and United States(113.7)(3.7)
Development and expansion incentive(221.7)(7.3)
Sale of business(117.6)(3.9)
Qualified domestic top-up tax41.41.4
Other15.20.5
Other foreign jurisdictions21.00.7
Effect of cross-border tax laws
Subpart F income139.44.6
Global intangible low-taxed income58.11.9
Other(22.6)(0.7)
Tax credits
Research and development tax credits(79.8)(2.6)
Other(7.5)(0.2)
Changes in valuation allowance(113.0)(3.7)
Nontaxable or nondeductible items
Stock based compensation12.60.4
Other(5.8)(0.2)
Changes in unrecognized tax benefits86.32.8
Other adjustments
Deemed royalty40.11.3
Other(0.1)—
Effective tax rate$376.512.4%

(1)State taxes in Illinois, Massachusetts, and Arizona for fiscal 2026 made up the majority (greater than 50%) of the tax effect in this category.
As previously disclosed for the years ended February 1, 2025, and February 3, 2024, prior to the adoption of ASU 2023-09, the following is a reconciliation of the difference between the U.S. federal statutory income taxes and the total income tax expense (benefit) as follows (in millions):
Year Ended
February 1,
2025		February 3,
2024
Tax at U.S. statutory rate
$(187.9)$(159.3)
State taxes, net of federal benefit(2.0)2.5
Difference in U.S. and non-U.S. tax rates98.269.5
Foreign income inclusion in U.S.159.7220.0
Change in federal valuation allowance36.992.4
Federal research and development credits(102.8)(88.0)
Stock-based compensation(36.1)(0.5)
Non-deductible compensation17.115.8
Intellectual property transaction
—15.3
Uncertain tax positions2.71.0
Other4.56.0
Total provision (benefit) for income taxes
$(9.7)$174.7

The Company recorded an income tax expense of $376.5 million and an income tax benefit of $9.7 million in fiscal 2026 and 2025, representing effective tax rates of 12.4% and 1.1%, respectively. The increase in income tax provision in fiscal 2026 was driven by an increase in earnings, which includes the gain on the sale of the Company’s automotive ethernet business. The income tax expense for fiscal 2026 differs from the U.S. federal statutory rate of 21% as a result of foreign income inclusions in the U.S., a portion of the Company’s earnings or losses being taxed or benefited at rates lower than the U.S. statutory rate, research and development credit generation, and changes in valuation allowance.

The income tax benefit for fiscal 2025 differs from the U.S. federal statutory rate of 21% as a result of foreign income inclusions in the U.S., a portion of the Company’s earnings or losses being taxed or benefited at rates lower than the U.S. statutory rate, research and development credit generation, and deductions related to stock compensation.

The income tax expense for fiscal 2024 differs from the U.S. federal statutory rate of 21% as a result of foreign income inclusions in the U.S., a portion of the Company’s earnings or losses being taxed or benefited at rates lower than the U.S. statutory rate, research and development credit generation, and disallowed deductions related to non-deductible compensation.

The One Big Beautiful Bill Act of 2025 (the “2025 Tax Act”) was signed into law on July 4, 2025. The 2025 Tax Act makes permanent key elements of the 2017 Tax Cuts and Jobs Act, including domestic research cost expensing, 100% bonus depreciation and makes modifications to the U.S. International tax framework. The Company’s tax provision for the January 31, 2026 period includes the impact of the 2025 Tax Act. The Company will continue to evaluate the impact of the 2025 Tax Act on its income taxes.
Deferred tax assets and liabilities consist of the following (in millions):
January 31,
2026		February 1,
2025
Deferred tax assets:
Net operating losses$105.3 $112.0 
Income tax credits
1,085.5 1,133.0 
Intangible assets410.2 536.7 
Lease liabilities44.9 44.2 
Other
102.9 96.3 
Gross deferred tax assets1,748.8 1,922.2 
Valuation allowance(1,113.3)(1,176.2)
Total deferred tax assets635.5 746.0 
Deferred tax liabilities:
Intangible assets(184.0)(274.3)
Fixed assets(67.4)(41.5)
Unremitted earnings of non-U.S. subsidiaries(20.1)(25.6)
Right of use assets(38.6)(37.2)
Total deferred tax liabilities(310.1)(378.6)
Net deferred tax assets
$325.4 $367.4 

The deferred tax assets and liabilities based on tax jurisdictions are presented on the Company’s consolidated balance sheets as follows (in millions):
January 31,
2026		February 1,
2025
Non-current deferred tax assets$345.9 $401.2 
Non-current deferred tax liabilities(20.5)(33.8)
Net deferred tax assets
$325.4 $367.4 

The ultimate realization of deferred tax assets depends upon the generation of future taxable income during the periods in which those assets become deductible or creditable. The Company evaluates the recoverability of its deferred tax assets, weighing all positive and negative evidence, and provides or maintains a valuation allowance for these assets if it is more likely than not that some, or all, of the deferred tax assets will not be realized. If negative evidence exists, sufficient positive evidence is necessary to support a conclusion that a valuation allowance is not needed. The Company considers all available evidence such as its earnings history including the existence of cumulative income or losses, reversals of taxable temporary differences, projected future taxable income, and tax planning strategies. In the U.S., and in certain foreign jurisdictions, the Company has deferred tax assets for which partial valuation allowances have been established. After weighing all available evidence, particularly the earnings history and forecasts of future taxable income in each respective jurisdiction, as well as its history of tax credits expiring unused, the Company determined that negative evidence outweighed positive evidence with respect to the ability to realize federal, certain state, and foreign research and development and other tax credits, as well as certain other foreign deferred tax assets. The valuation allowance decreased by $62.9 million from fiscal 2026, for certain federal, state, and foreign tax attributes. The Company maintains a valuation allowance on its U.S. R&D credits based on the factors listed above as well as forecasted R&D credit utilization and expected R&D credit generation in future years. In future periods, it is possible that significant positive or negative evidence could arise that results in a change in the Company’s judgment with respect to the need for a valuation allowance, which could result in a tax benefit, or adversely affect the Company’s income tax provision, in the period of such change in judgment.
As of January 31, 2026, the Company had net operating loss carryforwards available to offset future taxable income of approximately $358.7 million, $804.6 million, $198.1 million and none for U.S. federal, state of California, other U.S. states, and foreign purposes, respectively. If not utilized, the federal loss carryforwards begin to expire in fiscal 2033, and the California carryforwards begin to expire in fiscal 2027. The Company also had federal research and other tax credit carryforwards of approximately $663.6 million, which begin to expire in fiscal 2027. As of January 31, 2026, the Company also had California research tax credit carryforwards of approximately $792.0 million, which can be carried forward indefinitely. In addition, the Company has research and other tax credit carryforwards of approximately $53.7 million in other U.S. states, which begin to expire in fiscal 2027. The Company also has research and other tax credit carryforwards of approximately $14.6 million in foreign jurisdictions, which begin to expire in fiscal 2027. The Company’s net operating loss and tax credit carryforwards may be subject to audit and adjusted for changes or modification in tax laws, other authoritative interpretations, or other facts and circumstances.

Utilization of the Company’s U.S. federal and state net operating loss and credit carryforwards may be subject to annual limitations due to ownership change provisions of the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. Future changes in the Company’s stock ownership, some of which are generally outside of the Company’s control, could result in an ownership change under Section 382 and Section 383 and result in a limitation on U.S. tax attributes. The Company has determined that no significant limitation would be placed on the utilization of its net operating loss and tax credit carry-forwards due to prior ownership changes.

The following table reflects changes in the unrecognized tax benefits (in millions):
Year Ended
January 31,
2026		February 1,
2025		February 3,
2024
Unrecognized tax benefits as of the beginning of the period$541.7 $476.5 $317.5 
Increases related to prior year tax positions101.6 — — 
Decreases related to prior year tax positions(14.1)(7.7)(0.8)
Increases related to current year tax positions68.3 74.9 163.1 
Settlements(102.3)(0.2)(1.0)
Lapse in the statute of limitations(1.2)(1.4)(1.8)
Foreign exchange gain
0.6 (0.4)(0.5)
Gross amounts of unrecognized tax benefits as of the end of the period$594.6 $541.7 $476.5 

The Company has recorded $594.6 million of gross unrecognized tax benefits as of January 31, 2026, of which $199.6 million would affect the Company’s effective income tax rate if recognized. $353.3 million of the Company’s gross unrecognized tax benefits as of January 31, 2026 relate to income tax positions which, if recognized, would increase deferred tax assets that are subject to valuation allowances.

The total amount of interest and penalties accrued was approximately $7.0 million, $5.8 million, and $3.8 million as of January 31, 2026, February 1, 2025, and February 3, 2024, respectively. The consolidated statements of operations for fiscal 2026, 2025, and 2024 included accruals of $3.0 million, $2.5 million, and $1.3 million, respectively, of interest and penalties related to unrecognized tax benefits.

The Company is subject to taxation in the United States and various state and foreign jurisdictions. The Company is subject to income tax audits by the respective tax authorities in all of the jurisdictions in which it operates. The examination of tax liabilities in each of these jurisdictions requires the interpretation and application of complex and sometimes uncertain tax laws and regulations. As of January 31, 2026, the Company is subject to examination in significant jurisdictions including Germany, India, Israel, Singapore, and the United States for fiscal 2003 and after.

The Company maintains a Development and Expansion Incentive (“DEI”) in Singapore through June 30, 2029. To retain the current DEI tax benefits through June 2029 in Singapore, the Company must meet certain operating conditions, headcount and investment requirements, as well as maintain certain activities in Singapore. In fiscal 2026, tax savings associated with this program, after factoring in any qualified domestic minimum top-up tax, were approximately $56.4 million, which if paid, would impact the Company’s earnings per share by $0.07. In fiscal 2025 and 2024, no Singapore tax incentive net tax benefits were recorded.
Marvell Israel (M.I.S.L) Ltd., is entitled to certain tax benefits through December 31, 2026 under the Israeli Encouragement of Investments Law (“Encouragement Law”) Special Technology Enterprise Regime, subject to various operating requirements and other conditions. In fiscal 2026, tax savings associated with this program were approximately $25.3 million, which if paid, would impact the Company’s earnings per share by $0.03 per share. In fiscal 2025, no Israel tax incentive net tax benefits were recorded. In fiscal 2024, tax savings associated with this program were approximately $8.7 million, which if paid, would impact the Company’s earnings per share by $0.01 per share.

As of January 31, 2026, the Company intends to indefinitely reinvest $40.3 million of cumulative undistributed earnings held by certain subsidiaries. The Company has not provided the amount of the unrecognized deferred tax liabilities for temporary differences related to these investments as the determination of such amounts is not practicable.

The following table presents supplemental cash flow information related to income taxes paid, net of refunds received (in millions):
Year Ended
January 31,
2026
U.S. Federal$4.1 
U.S. State1.1 
Foreign
Singapore61.0 
India11.5 
Israel6.6 
Other7.8 
Total cash paid for income taxes, net of refunds received$92.1 

Cash paid for incomes taxes, net of refunds received, for fiscal 2025 and 2024 were $40.1 million and $120.6 million, respectively.