Marvell Technology (NASDAQ:MRVL) Announces Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Marvell Technology (NASDAQ:MRVL) announced its quarterly earnings results on Thursday. The semiconductor company reported $0.94 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.93 by $0.01, FiscalAI reports. The company had revenue of $2.74 billion for the quarter, compared to the consensus estimate of $2.72 billion. Marvell Technology had a net margin of 28.99% and a return on equity of 13.83%. Marvell Technology’s revenue for the quarter was up 36.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.67 EPS. Marvell Technology updated its Q3 2027 guidance to 1.050-1.150 EPS.

Here are the key takeaways from Marvell Technology’s conference call:

• Record results and raised outlook: Q2 revenue reached $2.739 billion, up 37% year over year, while Q3 guidance of $3.15 billion implies more than 50% year-over-year growth. Marvell now expects fiscal 2027 revenue of roughly $12 billion and fiscal 2028 revenue of approximately $18 billion.
• Data center and AI demand are accelerating: Data center revenue rose 46% year over year to $2.17 billion and is expected to grow roughly 75% year over year in Q3. Strength spans optical interconnect, switching, broadband analog, scale-up networking, and custom silicon.
• Custom silicon opportunity expanded materially: Marvell said its expanded agreement and warrant with a major hyperscaler covers inference accelerators, storage controllers, NICs, memory interface controllers, and near-memory compute. Revenue through fiscal 2028 is already reflected in its outlook, but management sees substantial additional upside in fiscal 2029 and beyond.
• Operating leverage is improving: Q2 non-GAAP operating margin expanded to 36.6%, and management expects to enter its 38%–40% long-term target range in Q4 of fiscal 2027, reaching the upper end of that range during fiscal 2028.
• Communications revenue remains volatile and near-term margins face mix pressure: Communications and other revenue is expected to decline in the low-to-mid teens in Q3 before recovering in Q4. The faster custom ramp is also expected to lower Q3 gross margin sequentially, with non-GAAP gross margin guided to 57.5%–58.5%.

Marvell Technology Trading Down 1.5%

NASDAQ MRVL traded down $3.66 during trading hours on Thursday, hitting $241.45. 38,984,987 shares of the company were exchanged, compared to its average volume of 28,944,863. Marvell Technology has a 52 week low of $61.44 and a 52 week high of $329.88. The company has a quick ratio of 2.66, a current ratio of 3.28 and a debt-to-equity ratio of 0.27. The stock has a 50-day moving average price of $230.49 and a 200 day moving average price of $175.15. The stock has a market cap of $211.22 billion, a PE ratio of 82.69, a price-to-earnings-growth ratio of 1.50 and a beta of 2.24.

Marvell Technology Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 30th. Shareholders of record on Friday, July 10th were paid a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a yield of 0.1%. The ex-dividend date of this dividend was Friday, July 10th. Marvell Technology’s payout ratio is presently 8.22%.

Wall Street Analysts Forecast Growth

Several research analysts have commented on MRVL shares. JPMorgan Chase & Co. increased their price objective on shares of Marvell Technology from $135.00 to $240.00 and gave the company an “overweight” rating in a report on Thursday, May 28th. Stifel Nicolaus lifted their target price on Marvell Technology from $321.00 to $350.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th. Bank of America boosted their target price on Marvell Technology from $240.00 to $365.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. William Blair reissued an “outperform” rating on shares of Marvell Technology in a research note on Thursday, May 28th. Finally, Citigroup raised their price target on Marvell Technology from $225.00 to $275.00 and gave the company a “buy” rating in a report on Friday, August 21st. Three research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $258.42.

Insider Buying and Selling

In related news, CEO Matthew J. Murphy sold 7,500 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $236.08, for a total value of $1,770,600.00. Following the sale, the chief executive officer directly owned 783,186 shares of the company’s stock, valued at $184,894,550.88. This represents a 0.95% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sandeep Bharathi sold 2,231 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $299.13, for a total transaction of $667,359.03. Following the completion of the sale, the insider directly owned 55,530 shares of the company’s stock, valued at approximately $16,610,688.90. The trade was a 3.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 41,981 shares of company stock worth $9,753,132 in the last 90 days. Company insiders own 0.12% of the company’s stock.

Institutional Trading of Marvell Technology

A number of large investors have recently made changes to their positions in the stock. Intech Investment Management LLC lifted its holdings in shares of Marvell Technology by 3.9% in the 1st quarter. Intech Investment Management LLC now owns 28,784 shares of the semiconductor company’s stock worth $1,772,000 after buying an additional 1,085 shares during the period. Baird Financial Group Inc. grew its holdings in Marvell Technology by 22.7% during the 2nd quarter. Baird Financial Group Inc. now owns 17,417 shares of the semiconductor company’s stock worth $1,348,000 after acquiring an additional 3,221 shares in the last quarter. Flow Traders U.S. LLC purchased a new position in Marvell Technology during the 2nd quarter valued at about $354,000. Treasurer of the State of North Carolina raised its holdings in shares of Marvell Technology by 3.0% in the 2nd quarter. Treasurer of the State of North Carolina now owns 403,818 shares of the semiconductor company’s stock valued at $31,256,000 after purchasing an additional 11,572 shares in the last quarter. Finally, Alliancebernstein L.P. lifted its position in shares of Marvell Technology by 1.0% in the 2nd quarter. Alliancebernstein L.P. now owns 411,569 shares of the semiconductor company’s stock worth $31,855,000 after purchasing an additional 4,060 shares during the period. 83.51% of the stock is owned by hedge funds and other institutional investors.

Marvell Technology News Roundup

Here are the key news stories impacting Marvell Technology this week:

• Positive Sentiment: Marvell reported adjusted earnings of $0.94 per share, ahead of the approximately $0.92–$0.93 consensus, while revenue reached about $2.74 billion, slightly above estimates. Revenue increased 37% year over year, supported by strong demand for AI infrastructure. Marvell Technology Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Data-center revenue reportedly jumped 46%, highlighting accelerating demand for Marvell’s custom silicon and optical networking products used in AI data centers. The company also raised its full-year and next-year revenue outlooks, reinforcing the long-term AI growth story. Marvell Sees Accelerating Growth as AI Demand Boosts Second-Quarter Profit and Revenue
• Positive Sentiment: Third-quarter fiscal 2027 guidance calls for adjusted EPS of $1.05–$1.15, above the $1.03 consensus, and revenue of $3.0–$3.3 billion. The forecast indicates continued sequential growth in AI-related demand. Marvell Technology Forecasts Quarterly Revenue Above Estimates
• Neutral Sentiment: Investors were focused on visibility into Marvell’s recently announced multibillion-dollar custom-chip agreement with Google, including the timing of revenue contribution and the impact of related warrants. The earnings release did not appear to provide a sufficiently large near-term surprise to reset expectations.
• Negative Sentiment: The earnings beats were narrow, and management’s forecast provided limited upside relative to elevated Wall Street expectations. With MRVL priced for exceptional AI growth, traders treated the results as “good, but not good enough,” prompting a post-earnings selloff. Marvell Is Boosting Its Forecasts, but That’s Not Enough to Lift Its Stock

About Marvell Technology

Marvell Technology Group is a global semiconductor company that designs and develops integrated circuits and related software for data infrastructure, networking, storage and connectivity markets. The company’s product portfolio includes system-on-chip (SoC) solutions, Ethernet physical-layer transceivers (PHYs), switch and switch silicon, optical interconnect components, storage controllers, and security processors. Marvell’s technology is used to enable high-performance data centers, carrier networks, enterprise and cloud storage, as well as connectivity in automotive and industrial applications.

Founded in 1995 and headquartered in Santa Clara, California, Marvell has grown through both organic development and strategic acquisitions to broaden its capabilities across networking and data interconnect.