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

Marvell Technology (NASDAQ:MRVL) released its earnings results on Thursday. The semiconductor company reported $0.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.93 by $0.01, FiscalAI reports. Marvell Technology had a net margin of 28.99% and a return on equity of 13.83%. The business had revenue of $2.74 billion for the quarter, compared to analyst estimates of $2.72 billion. During the same quarter in the previous year, the business earned $0.67 earnings per share. Marvell Technology’s revenue for the quarter was up 36.5% on a year-over-year basis. 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 Down 1.5%

Shares of NASDAQ MRVL traded down $3.66 during mid-day trading on Thursday, reaching $241.45. 38,984,987 shares of the company’s stock traded hands, compared to its average volume of 23,161,422. The stock has a market cap of $211.22 billion, a P/E ratio of 82.69, a PEG ratio of 1.53 and a beta of 2.24. The business has a 50-day simple moving average of $229.10 and a 200 day simple moving average of $176.28. Marvell Technology has a 1-year low of $61.44 and a 1-year high of $329.88. The company has a debt-to-equity ratio of 0.27, a current ratio of 3.28 and a quick ratio of 2.66.

Marvell Technology Dividend Announcement

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

Key Headlines Impacting Marvell Technology

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

Wall Street Analyst Weigh In

Several equities research analysts recently commented on MRVL shares. Jefferies Financial Group restated a “buy” rating and set a $325.00 target price on shares of Marvell Technology in a research report on Thursday, August 20th. JPMorgan Chase & Co. boosted their price target on Marvell Technology from $135.00 to $240.00 and gave the company an “overweight” rating in a research note on Thursday, May 28th. Morgan Stanley increased their price target on Marvell Technology from $195.00 to $224.00 and gave the stock an “equal weight” rating in a report on Monday. B. Riley Financial reaffirmed a “buy” rating on shares of Marvell Technology in a research report on Wednesday, August 19th. Finally, UBS Group set a $275.00 price objective on shares of Marvell Technology in a research note on Monday. Three research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat.com, Marvell Technology has a consensus rating of “Moderate Buy” and a consensus target price of $258.42.

Insider Buying and Selling at Marvell Technology

In other news, CEO Matthew J. Murphy sold 7,500 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $236.08, for a total value of $1,770,600.00. Following the completion of 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 ownership of the stock. The sale 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, COO Chris Koopmans sold 10,000 shares of Marvell Technology stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $180.50, for a total value of $1,805,000.00. Following the transaction, the chief operating officer directly owned 227,941 shares in the company, valued at approximately $41,143,350.50. The trade was a 4.20% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 41,981 shares of company stock worth $9,753,132. 0.12% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Marvell Technology

A number of hedge funds have recently bought and sold shares of MRVL. Garton & Associates Financial Advisors LLC bought a new stake in Marvell Technology in the fourth quarter worth about $90,000. Safe Harbor Fiduciary LLC bought a new position in shares of Marvell Technology during the 4th quarter valued at approximately $64,000. Quarry LP purchased a new stake in shares of Marvell Technology during the 4th quarter worth approximately $90,000. Rossby Financial LCC raised its holdings in shares of Marvell Technology by 41.7% in the 4th quarter. Rossby Financial LCC now owns 717 shares of the semiconductor company’s stock worth $61,000 after purchasing an additional 211 shares during the period. Finally, Triumph Capital Management raised its holdings in shares of Marvell Technology by 3,541.4% in the 4th quarter. Triumph Capital Management now owns 1,056 shares of the semiconductor company’s stock worth $90,000 after purchasing an additional 1,027 shares during the period. 83.51% of the stock is owned by hedge funds and other institutional investors.

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.