$MRVL earnings beat expectations, but the stock dropped more than 5% after hours.
Q2 revenue was $2.739 billion, up 37% year-over-year. Data center revenue was $2.17 billion, up 46% year-over-year, and the Q3 outlook also came in above market expectations.
Full-year guidance was raised as well: FY27 $12 billion, and FY28 $18 billion.
But the stock didn’t rise—it fell instead.
Why? This year the stock is already up 185%, and the market is looking for an “even bigger-than-expected beat” and guidance further out. The result was only a modest beat. Rumors are intense about a $100 billion+ Google partnership, but management indicated that most of the profit contribution won’t materialize until after FY2029.
The Q3 gross margin guidance is 57.5%-58.5%, which is slightly lower than the prior quarter’s 58.9%.
So the after-hours sell-off looks more like an expectations gap rather than a breakdown in performance.
One uncomfortable question: if Google’s orders won’t ramp until FY2029, then what year is this valuation actually pricing in?
Q2 revenue was $2.739 billion, up 37% year-over-year. Data center revenue was $2.17 billion, up 46% year-over-year, and the Q3 outlook also came in above market expectations.
Full-year guidance was raised as well: FY27 $12 billion, and FY28 $18 billion.
But the stock didn’t rise—it fell instead.
Why? This year the stock is already up 185%, and the market is looking for an “even bigger-than-expected beat” and guidance further out. The result was only a modest beat. Rumors are intense about a $100 billion+ Google partnership, but management indicated that most of the profit contribution won’t materialize until after FY2029.
The Q3 gross margin guidance is 57.5%-58.5%, which is slightly lower than the prior quarter’s 58.9%.
So the after-hours sell-off looks more like an expectations gap rather than a breakdown in performance.
One uncomfortable question: if Google’s orders won’t ramp until FY2029, then what year is this valuation actually pricing in?