Marvell Beat Every Number Wall Street Wanted. The Stock Fell Anyway

Keypoints:

• • Marvell posted Q2 revenue of $2.74 billion, topping the roughly $2.72 billion analysts expected
  • Non-GAAP earnings hit $0.94 per share, a penny above consensus
  • Data center revenue reached $2.17 billion, up 46% year over year
  • The company raised its fiscal 2028 revenue target to about $18 billion, up from a prior $16.5 billion
  • Shares still fell roughly 7 to 8% after the report

Marvell's stock dropped anyway, sliding roughly 7 to 8% after the report landed. Second-quarter revenue came in at $2.739 billion, past the roughly $2.72 billion analysts expected. Earnings hit 94 cents a share, a penny ahead of forecasts. 

Data center revenue alone reached $2.17 billion, up 46% from last year and now 79% of total sales. Management didn't stop there either. They raised the full-year outlook too, now pointing toward $12 billion for fiscal 2027 and $18 billion the year after, up from an earlier $16.5 billion target.

None of it mattered much to the stock price. Here's why. Marvell shares had already climbed sharply this year, well over 150%, even before the report landed. Expectations got stacked even higher after news broke that Google would buy up to $12.2 billion of Marvell's shares as part of a broader chip partnership. A great quarter simply wasn't great enough to clear that bar.

Wall Street doesn't seem worried, though. Analysts largely called the drop a case of overheated expectations meeting an otherwise solid quarter. Several major banks kept their buy ratings within hours of the selloff, with at least one price target still pointing to real upside from current levels.