Marvell Posts Record Revenue, Beats EPS — Stock Falls Sharply on Google Deal Timing

Marvell Technology reported second-quarter fiscal 2027 results on August 27, 2026, with record net revenue of $2.739 billion, up 37% year-over-year and $39.0 million above the midpoint of the company's prior guidance.

Strong Underlying Results

• Non-GAAP diluted EPS was $0.94, beating the $0.87 consensus estimate by 8.05%
• Data center segment revenue reached $2.17 billion, up 18% sequentially and 46% year-over-year
• Non-GAAP gross margin was 58.9%

Why the Stock Fell Anyway

Despite the record quarter and EPS beat, shares fell sharply — with reported declines ranging from roughly 6% to over 10% depending on the source and measurement window — as investors reacted to disclosure that the largest revenue contribution from Marvell's Google AI-chip partnership is now expected in fiscal 2029, later than the timeline investors had been anticipating. The sharp reaction reflected both the specific disappointment on deal timing and Marvell's elevated valuation heading into the report, which had been trading at a premium multiple that left less room for anything short of an unambiguously positive surprise.

Raised Guidance

Marvell raised its fiscal 2027 revenue outlook to approximately $12 billion, implying 45% year-over-year growth, and its fiscal 2028 outlook to approximately $18 billion, implying 50% year-over-year growth. For fiscal Q3 2027, the company guided net revenue to $3.150 billion, plus or minus 5%.

What This Means for AI Chip Supply Chain Buyers

The specific detail that a major growth catalyst — the Google AI-chip partnership — has a revenue timeline extending to fiscal 2029 is a useful reminder that large strategic partnerships in the AI chip supply chain often take years to fully materialize into revenue, even when the underlying technical collaboration is well underway. For organizations tracking AI chip supply chain capacity and diversification, timeline specificity like this is worth factoring into longer-range planning rather than assuming announced partnerships translate into near-term capacity or revenue shifts.