SANTA CLARA, August 27, 2026, 18:05 (EDT) — Marvell Technologies (MRVL) stock slid 7.6% in after-hours trading, despite the company reporting record quarterly revenue of $2.74 billion.
- Marvell’s stock dropped 7.62% to $223.05 in after-hours trading as of 18:00 EDT.
- Revenue for the quarter hit an all-time high of $2.739 billion, marking a 37% increase year-on-year.
- Revenue from data centers climbed 46% to $2.17 billion, accounting for roughly 79% of all sales.
- The midpoint for third-quarter revenue of $3.15 billion was above the consensus estimate of $3.03 billion.
Shares of Marvell Technology fell 7.62% in after-hours trading on Thursday, despite reporting record quarterly revenue. The slide wiped out approximately $16.1 billion from the chipmaker’s market capitalization at the previous session close.
The response reflects an expectations gap rather than a disappointing quarter. Marvell surpassed its internal revenue midpoint by $39 million and issued guidance that exceeded Wall Street’s projections.
The company is now led by AI infrastructure. Data-center revenue climbed to $2.17 billion, accounting for nearly 79% of overall sales, marking a 46% increase from the same period last year.
Marvell Technology (NASDAQ: MRVL) posted second-quarter revenue of $2.739 billion. GAAP operating income increased by 58.5% to $459.7 million, and operating cash flow totaled $605.5 million.
| Metric | Q2 FY2026 | Q2 FY2027 | Change |
|---|---|---|---|
| Revenue | $2.006 billion | $2.739 billion | +36.5% |
| GAAP gross margin | 50.4% | 53.1% | +270 bp |
| GAAP operating income | $290.1 million | $459.7 million | +58.5% |
| GAAP net income | $194.8 million | $308.0 million | +58.1% |
| Diluted EPS | $0.22 | $0.33 | +50.0% |
Management projects third-quarter revenue at $3.15 billion, with a margin of error of 5%. The midpoint represents approximately 15% growth over the prior quarter and is 4% higher than the consensus estimate from analysts.
Marvell’s adjusted earnings outlook also surpassed expectations. The company projected earnings of $1.10 per share, give or take five cents, compared with the consensus estimate of $1.07.
However, the margin forecast weakened. The non-GAAP gross-margin midpoint for the third quarter stands at 58.0%, representing a decrease of 90 basis points compared to the previous quarter.
Growing AI demand is driving up costs. Research and development expenses rose 43% to $741.1 million, while stock-based compensation jumped over twofold to $326.2 million.
Chief Executive Matt Murphy stated that AI bookings were still “exceptionally robust.” He anticipates growth will pick up pace as custom-silicon and optical products increase.
The balance sheet shows available capacity, although leverage rose. Cash totaled $3.93 billion and long-term debt amounted to $4.96 billion at the end of the quarter.
Trading volume during the regular session totaled 38.9 million shares, roughly 1.66 times higher than the latest average. Shares finished the session at $241.45, then dropped to $223.05 in after-hours trading.
Attention shifts to Marvell’s investor day on October 6. Management plans to outline its extended AI prospects and provide updates on when significant custom-chip production will scale up.
Risks: Heavy reliance on a few key customers may lead to fluctuating revenue streams. Returns could also face headwinds from supply shortages, slower custom-silicon adoption, shrinking gross margins and increasing compensation expenses.
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