Marvell Technology Q2 Earnings Fall Short of Expectations

Marvell Technology's Q2 results met expectations with adjusted EPS of $0.67, but revenue fell short. The semiconductor firm's revenue for the quarter ended August 2 was in line with the consensus estimate of $0.67, but the company's revenue outlook was lower than expected. As a result, Marvell's stock price sank 7% in early post-market trading.

Marvell Technology, Inc. (NASDAQ: MRVL) reported its second-quarter financial results for fiscal year 2026, with net revenue reaching $2.006 billion, a 58% year-over-year increase. While the adjusted earnings per share (EPS) of $0.67 met expectations, the company's revenue fell short of consensus estimates, leading to a 7% drop in its stock price during early post-market trading [1].

The semiconductor firm's GAAP net income for the second quarter was $194.8 million, or $0.22 per diluted share, while non-GAAP net income was $585.5 million, or $0.67 per diluted share. The company's gross margin was 50.4% under GAAP and 59.4% non-GAAP. Cash flow from operations for the quarter was $461.6 million [1].

Marvell's revenue outlook for the third quarter of fiscal 2026 was lower than expected, with the company projecting net revenue of $2.060 billion, plus or minus 5%. The company attributed the lower revenue outlook to the divestiture of its Automotive Ethernet business on August 14, 2025 [1].

Matt Murphy, Marvell's Chairman and CEO, stated, "Marvell delivered record revenue of $2.006 billion in the second quarter – a 58% year-over-year increase – and we expect continued growth into the third quarter, accompanied by operating margin and earnings per share expansion." The company's custom AI design activity is at an all-time high, with the Marvell team engaged in over 50 new opportunities across more than 10 customers [1].

The company's stock price fell 7% in early post-market trading following the release of the Q2 results. Investors were likely disappointed by the lower revenue outlook and the impact of the Automotive Ethernet divestiture on future growth prospects [1].

Marvell will conduct a conference call on Thursday, August 28, 2025, at 1:45 p.m. Pacific Time to discuss the results for the second quarter of fiscal year 2026. The call will be webcast and can be accessed at the Marvell Investor Relations website [1].

References:
[1] https://investor.marvell.com/2025-08-28-Marvell-Technology,-Inc-Reports-Second-Quarter-of-Fiscal-Year-2026-Financial-Results