Marvell Q2 revenue beat on data center jump overshadowed by soft quarterly gross margin forecast

Marvell Technology

27/08/2026 21:14

Overview
US data infrastructure chipmaker's fiscal Q2 revenue rose 37% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q2 beat analyst expectations
Company raised revenue outlook for fiscal 2027 and 2028, citing strong AI-related demand

Outlook
Marvell expects Q3 net revenue of $3.15 bln +/- 5%
Q3 non-GAAP gross margin seen at 57.5%-58.5%, below Q2's 58.9%
Company raises revenue outlook for fiscal 2027 and fiscal 2028
Marvell expects Q3 non-GAAP diluted EPS of $1.10 +/- $0.05

Result Drivers
DATA CENTER DEMAND - Co said continued strong demand across its Data Center portfolio drove Q2 results, per CEO Matt Murphy
AI BOOKINGS - Co said AI-related bookings remain exceptionally robust and contributed to revenue growth, per CEO Matt Murphy
CONNECTIVITY AND CUSTOM BUSINESS - Co cited strong demand in Connectivity and significant acceleration in Custom business as growth drivers, per CEO Matt Murphy

Company press release: ID:nBwbrwFkqa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$2.74 bln
$2.71 bln (30 Analysts)
Q2 Adjusted EPS
Beat
$0.94
$0.92 (31 Analysts)
Q2 EPS
 
$0.33
 
Q2 Net Income
 
$308 mln
 
Q2 Gross Margin
 
53.10%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 38 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Marvell Technology, Inc. is $271.06, about 10.6% above its August 26 closing price of $245.11
The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 40 three months ago

Reuters Recommended Reads
Aug 27 - Nvidia forecasts 70% sales growth next year, signals AI spending boom has years left to run
Aug 26 - Synopsys raises annual forecasts on AI-driven chip design software demand 
Aug 25 - Semtech Q2 sales, adjusted EPS beat estimates on strong bookings

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)