Shares of Marvell (MRVL) fell in after-hours trading after the semiconductor company reported earnings for its second quarter of Fiscal Year 2026. Earnings per share came in at $0.67, which was in line with analysts’ consensus estimate.
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In addition, sales increased by 57.5% year-over-year, with revenue hitting $2 billion. This slightly missed analysts’ expectations of $2.01 billion. Nevertheless, this strong sales jump is thanks to the rising demand for artificial intelligence in data centers, which makes up the majority of Marvell’s revenue, according to Main Street Data.
More specifically, Data Center revenue came in at $1.49 billion, which was a 69% increase from the previous year. This was followed by Enterprise Networking at $193.6 million.
2026 Outlook
Looking forward, management has provided the following guidance for Q3 2026:
- Net revenue is expected to be $2.06 billion +/- 5% versus estimates of $2.104 billion
- Non-GAAP gross margin of 59.5% to 60.0%
- Non-GAAP operating expenses of approximately $485 million
- Non-GAAP EPS of $0.74 +/- $0.05 per share compared to estimates of $0.72
As we can see, guidance came in mixed, which is probably why shares fell in after-hours trading, especially since the current quarter’s results were disappointing.
Is MRVL Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MRVL stock based on 27 Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average MRVL price target of $91.63 per share implies 18.6% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
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