Marvell Technology (MRVL) reported fourth-quarter fiscal 2026 revenues of $2.22 billion, a 22% year-over-year increase, and earnings of 80 cents per share, up 33.3% year-over-year. The results, released on March 5, led to an 18.4% surge in MRVL’s stock price.
The company’s data center business grew 46% year-over-year, exceeding $6 billion, driven by heightened spending on AI infrastructure. Despite these strong results, MRVL faces macroeconomic challenges, including global trade tensions and a concentration risk, with 74% of revenues derived from data centers, predominantly tied to hyperscaler demand.
As competition intensifies from major players like Broadcom and AMD, MRVL’s bottom-line growth rate has been declining for three consecutive quarters. Analysts project a 19.4% growth rate for the first quarter of fiscal 2027, indicating potential pressure ahead. Currently, MRVL trades at a forward price-to-sales ratio of 7.22, above the sector average of 6.09.
