Marvell Q2 revenue up 37% year-on-year, exceeding expectations; Q3 guidance at $3.15 billions far surpasses forecasts|Earnings Report Insights
Marvell Technology announced its Q2 financial results, with revenue up 37% year-over-year to $2.74 billion and adjusted earnings per share at $0.94, both slightly exceeding expectations. Revenue from the data center business grew 46% to $2.2 billion, serving as the main growth driver. The company's Q3 revenue guidance is $3.15 billion, well above market expectations. Despite the strong performance, the stock price fell about 1.7% after hours, as it had already risen 184% this year and market expectations were high.
Marvell Technology reported strong quarterly financial results, but as market expectations had already been significantly elevated, the company's slight outperformance failed to satisfy investors, leading to a decline in its stock during after-hours trading.
After the U.S. market close on August 27, Marvell Technology released its second-quarter financial report, with revenue rising 37% year-on-year to $2.74 billion and adjusted earnings per share at $0.94, both slightly exceeding analysts’ expectations.
The third-quarter revenue guidance is $3.15 billion, far surpassing analysts’ previous forecasts of $3.03 to $3.04 billion.
Nevertheless, the company's shares were under pressure and dropped about 1.7% after hours before turning slightly positive. It's noteworthy that prior to the earnings release, Marvell Technology's stock had already surged 184% year-to-date.

Marvell Technology is one of the key beneficiaries of the current wave of AI-related trading, engaging in both custom chip design and providing optical networking technology for AI server clusters. However, with a recent pullback in AI-related stocks over the past few weeks, investors clearly have heightened expectations for results, and a slight beat on the numbers has struggled to boost confidence.
Strong data center business accelerates revenue growth
In the second quarter, Marvell Technology’s data center business revenue grew 46% year-on-year to $2.2 billion, becoming the main driver of overall results. Revenue from communications and other business segments reached $567.8 million, marking a 10% year-on-year increase.
On the profit side, net income reached $865.9 million, higher than analysts’ estimates of $852 million. Adjusted earnings per share were $0.94, up about 40% from $0.67 a year earlier, slightly beating market consensus of $0.92 to $0.93.
In terms of gross margin, non-GAAP gross margin was 58.9%, down 50 basis points year-on-year, while GAAP gross margin rose 270 basis points to 53.1%.
Third quarter guidance beats expectations, custom business accelerates further
Marvell Technology expects third-quarter revenue of approximately $3.15 billion (plus or minus 5%), well above analysts’ prior forecasts of $3.03 to $3.04 billion. Adjusted earnings per share guidance is $1.10 (plus or minus $0.05), also higher than market expectations of $1.07 to $1.08.
The company also expects third-quarter GAAP gross margin to range from 52.9% to 53.9%, and non-GAAP gross margin from 57.5% to 58.5%. GAAP operating expenses are projected at about $1.02 billion, and non-GAAP operating expenses at about $655 million.
Marvell Technology CEO Matt Murphy stated in the earnings release:
We are seeing comprehensive growth across our data center business portfolio, including strong demand in connectivity and a significant acceleration in our custom business starting from the second half of fiscal year 2027.
Last week, Google acquired warrants to purchase Marvell Technology shares worth $12.2 billion, boosting the company’s stock price.
The two parties maintain close cooperation on Google AI Tensor Processing Unit (TPU) related business, further strengthening Marvell Technology's custom chip design business.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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