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

Marvell Technology (NASDAQ:MRVL) announced its 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. Marvell Technology had a return on equity of 14.22% and a net margin of 27.93%.The business had revenue of $2.74 billion for the quarter, compared to analyst estimates of $2.72 billion. During the same quarter last year, the firm earned $0.67 EPS. Marvell Technology’s revenue for the quarter was up 36.5% compared to the same quarter last year. 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 Stock Performance

NASDAQ MRVL opened at $216.62 on Friday. The firm has a market capitalization of $189.50 billion, a P/E ratio of 71.49, a price-to-earnings-growth ratio of 1.51 and a beta of 2.24. The company has a current ratio of 3.28, a quick ratio of 2.66 and a debt-to-equity ratio of 0.27. The firm’s fifty day moving average price is $227.22 and its two-hundred day moving average price is $176.56. Marvell Technology has a 1 year low of $61.44 and a 1 year high of $329.88.

Marvell Technology Announces Dividend

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

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. UBS Group set a $275.00 price objective on shares of Marvell Technology in a report on Monday. Compass Point set a $190.00 target price on shares of Marvell Technology in a research report on Tuesday, May 26th. Needham & Company LLC lifted their price target on shares of Marvell Technology from $270.00 to $300.00 and gave the company a “buy” rating in a research note on Friday. Evercore reissued an “outperform” rating and set a $155.00 price target on shares of Marvell Technology in a research report on Tuesday, May 19th. Finally, JPMorgan Chase & Co. increased their price objective on shares of Marvell Technology from $135.00 to $240.00 and gave the stock an “overweight” rating in a research note on Thursday, May 28th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $265.76.

Marvell Technology News Summary

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

• Positive Sentiment: Marvell reported record fiscal Q2 revenue of $2.74 billion, up 36.5% year over year, while adjusted EPS of $0.94 narrowly exceeded the $0.93 consensus estimate. Data-center revenue jumped 46% to $2.17 billion, highlighting strong AI infrastructure demand. MRVL Q2 Earnings Beat on Data Center Strength, Outlook Raised
• Positive Sentiment: Management raised its fiscal 2027 revenue outlook to approximately $12 billion and expects fiscal Q3 EPS of $1.05-$1.15, above the $1.03 analyst estimate. The company also pointed to accelerating custom-chip and networking opportunities across AI data centers. Marvell Q2 Earnings Call Highlights Faster AI Data Center Growth
• Positive Sentiment: Several analysts remained constructive: Needham raised its target to $300, Oppenheimer increased its target to $325 and maintained an outperform rating, while Rosenblatt and Needham cited the long-term potential of Marvell’s Google AI-chip relationship. Marvell’s Google AI Chip Deal Could Drive Long-Term Revenue
• Neutral Sentiment: Analyst opinion is divided on timing and valuation. TD Cowen raised its target to $245 but retained a hold rating, and B. Riley lowered its target to $315 while keeping a buy rating. Options activity and some analysts view the selloff as a potential buying opportunity.
• Negative Sentiment: The immediate catalyst for the decline was disappointment with the longer-term outlook. Investors reportedly learned that meaningful revenue from the Google custom-AI-chip deal may not arrive until fiscal 2029, delaying the payoff from a partnership that had fueled lofty expectations. Marvell Shares Slide Over Timing of Google AI Deal Revenue
• Negative Sentiment: At a valuation near 74 times earnings after a surge of more than 180% this year, investors expected a much larger earnings and guidance beat. The narrow quarterly beat therefore failed to justify the premium multiple for some market participants.
• Negative Sentiment: Concerns about margins, execution and the competitive custom-silicon market also weighed on sentiment, particularly as management’s fiscal 2028 outlook did not provide enough upside relative to expectations. Marvell Shares Tumble as Outlook Underwhelms
• Negative Sentiment: Quiver data showed 22 insider sales and no insider purchases over the past six months, an additional, though not necessarily company-specific, caution signal for investors evaluating the stock’s elevated valuation.

Insider Activity

In related news, insider Sandeep Bharathi sold 2,231 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $299.13, for a total value of $667,359.03. Following the completion of the sale, the insider directly owned 55,530 shares in the company, valued at approximately $16,610,688.90. This trade represents a 3.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. 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. Also, CFO Daniel Durn sold 2,250 shares of Marvell Technology stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $281.01, for a total value of $632,272.50. Following the transaction, the chief financial officer owned 6,902 shares of the company’s stock, valued at $1,939,531.02. The trade was a 24.58% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 41,981 shares of company stock worth $9,753,132. Insiders own 0.12% of the company’s stock.

Institutional Trading of Marvell Technology

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

Marvell Technology Company Profile

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.