Marvell (MRVL) Stock Falls 6% After Q2 Earnings Beat as Google Deal Revenue Delayed

TLDR

• MRVL fell over 6% in after-hours trading after Q2 earnings on Thursday
• Adjusted EPS came in at 94 cents, beating estimates of 93 cents; revenue of $2.74 billion beat the $2.72 billion estimate
• Google received a warrant for a $12.2 billion stake in Marvell as part of a custom AI chip deal worth up to $120 billion through fiscal 2033
• Marvell raised fiscal 2027 revenue guidance to ~$12 billion and fiscal 2028 to ~$18 billion
• Investors were disappointed that Google deal revenue won’t contribute materially until fiscal 2029

Marvell Technology stock was trading up 184% in 2026 before Thursday’s earnings report. After the results dropped, it gave back more than 6% in after-hours trading.

Marvell Technology, Inc., MRVL

The numbers themselves were solid. Marvell posted adjusted earnings of 94 cents a share for its fiscal Q2, beating the consensus estimate of 93 cents. Revenue surged 37% year-over-year to $2.74 billion, topping Wall Street’s call for $2.72 billion.

So why the drop? Expectations were simply running hot.

MARVELL TECHNOLOGY $MRVL Q2’27 EARNINGS HIGHLIGHTS

🔹 Revenue: $2.7B (Est. $2.71B) 🟢; +37% YoY
🔹 Adj. EPS: $0.94 (Est. $0.92) 🟢; +40% YoY
🔹 Data Center Revenue: $2.2B; +46% YoY
🔹 Non-GAAP Gross Margin: 58.9%; -50 bps YoY

Q3 Guide:
🔹 Revenue: $3.15B +/- 5% (Est. $3.03B) 🟢… pic.twitter.com/nxdECCqaia

— Wall St Engine (@wallstengine) August 27, 2026

Marvell has been one of the AI trade’s biggest winners this year. That kind of run-up puts pressure on a company to deliver blowout results, not just modest beats.

The Google deal was supposed to be a catalyst. Last week, Alphabet’s Google received a warrant to take up to a $12.2 billion stake in Marvell as part of a custom AI chip agreement that could generate up to $120 billion in revenue through fiscal 2033.

That’s a big number. But the timing is the issue.

Google Revenue Not Coming Until 2029

CEO Matt Murphy confirmed on the earnings call that the Google partnership won’t contribute materially to revenue until fiscal 2029. Some analysts came in expecting more near-term impact.

Murphy pushed back on the disappointment, noting that Marvell’s custom revenue targets through fiscal 2028 already reflect some Google revenue. He added there is “upside bias” to the company’s prior $10 billion-plus fiscal 2029 target, but declined to put a new number on it.

Details are being saved for Marvell’s investor day on October 6.

Murphy did say custom-chip revenue would more than double next year. The partnership with Google covers AI processors, storage, network, and memory hardware connected to Google’s AI tensor processing units.

For Q3, Marvell guided for adjusted EPS of $1.05 to $1.15, with revenue around $3.15 billion at the midpoint. Analysts had penciled in EPS of $1.08 and revenue of $3.04 billion, so guidance came in ahead of expectations.

Longer-Term Targets Get a Lift

On the full-year picture, Marvell now expects fiscal 2027 revenue of roughly $12 billion, up from a prior forecast of $11.5 billion. Fiscal 2028 guidance was lifted to $18 billion from $16.5 billion.

Both are meaningful upgrades. But the market wanted more, faster.

Bob O’Donnell, chief analyst at TECHnalysis Research, pointed to the broader environment. “I believe expectations around custom AI accelerator projects are riding very high, especially given the recent news about the Broadcom and OpenAI work on Jalapeno,” he said.

The competitive backdrop is intense. Big Tech is racing to develop in-house chips as an alternative to Nvidia’s expensive processors, and Marvell has been a direct beneficiary of that trend.

Marvell’s investor day on October 6 is now the next major date on the calendar.

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