Overview
- Marvell reported fiscal second‑quarter results that topped estimates on Thursday, with revenue of about $2.74 billion and adjusted EPS of $0.94 driven by a roughly 46% jump in data‑center sales to about $2.2 billion.
- The company gave above‑consensus third‑quarter guidance of $3.15 billion plus or minus 5% and raised medium‑term revenue targets to roughly $12 billion for fiscal 2027 and $18 billion for fiscal 2028.
- Marvell disclosed an expanded agreement with Google that includes warrants allowing Google to buy up to 58.97 million shares at $206.58, with most warrants vesting as Google purchases custom products from Marvell.
- Despite the beat and analyst price‑target upgrades, the stock fell more than 6% after earnings because investors priced in very high growth and want clearer timing for the Google and hyperscaler custom‑silicon ramps.
- The key questions now are execution and concentration risk: data center work is already the majority of revenue, margins may shift as mix moves to custom silicon, and the Oct. 6 investor day should clarify when Google‑related volumes could become meaningful and how that would affect suppliers and Marvell’s long‑term cash flow.