MRVL to Post Q2 Earnings: Time to Buy, Sell or Hold the Stock?

Marvell Technology, Inc. MRVL is scheduled to report second-quarter fiscal 2026 results after market close on Aug. 28, 2025.Marvell Technology anticipates revenues of $2 billion (+/- 5%) for the second quarter of fiscal 2026. The Zacks Consensus Estimate for MRVL’s fiscal second-quarter revenues is pegged at $2.01 billion, indicating year-over-year growth of 58%.For the fiscal second quarter, the company expects non-GAAP earnings of 67 cents per share (+/- 5 cents per share). The Zacks Consensus Estimate for MRVL’s fiscal second-quarter earnings is pegged at 67 cents per share, reflecting a 123.33% increase year over year. The consensus mark for earnings has remained unchanged over the past 60 days.Image Source: Zacks Investment ResearchIn the trailing four quarters, Marvell Technology’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.57%.Marvell Technology, Inc. Price and EPS Surprise Marvell Technology, Inc. price-eps-surprise | Marvell Technology, Inc. QuoteEarnings Whispers for MRVL StockOur proven model does not conclusively predict an earnings beat for Marvell Technology this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.Though Marvell Technology currently carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.Factors Likely to Influence MRVL’s Q2 ResultsMarvell Technology’s overall second-quarter revenues are likely to have benefited from improved performance in its data center segment, which continues to be the primary engine of growth, benefiting from the rising demand for electro-optics products, custom artificial intelligence (AI) silicon and next-generation switches. Our model estimates suggest that second-quarter data center revenues will reach $1.5 billion, implying 70.4% year-over-year growth.The growing adoption of 800-gig PAM products and 400ZR data center interconnect solutions is fueling top-line expansion. Additionally, advancements in Compute Express Link technology and increased AI-related investments position Marvell Technology as a key player in the high-performance computing ecosystem.Improved inventory corrections and recovering demand are helping Marvell Technology’s Networking and Carrier segments rebound. Our projections indicate that Enterprise Networking and Carrier revenues will each rise 22.6% and 90.3% year over year, reaching $185.1 million and $144.5 million, respectively.Marvell Technology’s carrier segment is benefiting from new design wins in cloud-driven networking solutions. As telecom providers upgrade their infrastructure for AI-driven applications, MRVL’s networking division should continue to see steady improvements.However, the Automotive/Industrial segment is likely to face weakness in the industrial division due to lumpy order patterns. Although the planned divestiture of Automotive Ethernet to Infineon provides cash, but also reduces diversification away from data center, increasing reliance on AI/cloud cycles where Marvell Technology faces considerable competition and cost pressure. For the second quarter, our model estimates for Automotive/Industrial revenues are pegged at $75.6 million, indicating a 0.8% sequential decline.MRVL Stock Price Performance & ValuationYear to date, MRVL shares have plunged 33.7%, underperforming the Zacks Electronics – Semiconductors industry’s growth of 16.4%.Image Source: Zacks Investment ResearchNow, let’s look at the value Marvell Technology offers investors at the current levels. MRVL stock trades at a discounted price with a forward 12-month price-to-sales (P/S) multiple of 6.95X compared with the industry’s 8.65X.Image Source: Zacks Investment ResearchInvestment Consideration for MRVLMarvell Technology’s custom silicon business is a game-changer, particularly in the booming data center market. Cloud service providers rely on their highly specialized chips to optimize AI computing efficiency, networking speed and energy consumption.Marvell Technology is leading the charge in next-generation data center connectivity with investments in PCIe Gen 6 retimers and advanced interconnect technologies, ensuring faster and more reliable AI workloads. These advancements solidify MRVL’s role as a cornerstone of AI infrastructure, giving it a long-term competitive advantage.Furthermore, Marvell Technology has also formed strong collaborations with industry leaders, including NVIDIA NVDA, Dell Technologies DELL and Coherent Corp. COHR, to design high-speed networking technology for AI workloads.Marvell Technology and NVIDIA have collaborated to integrate MRVL’s optical interconnect solutions with NVIDIA’s AI and computing technology. Using the NVIDIA HGX H100 eight-GPU platform, BlueField-3 DPUs, Spectrum-X networking, and MRVL’s interconnects, they have developed NVIDIA Israel-1 to power AI applications with high efficiency.Marvell Technology has collaborated with Dell Technologies and Coherent Corp. to develop networking solutions. Together, Marvell Technology and Coherent combined their products with now acquired Juniper Networks' PTX10002-36QDD Packet Transport Router, Coherent’s 800ZR transceiver, and MRVL’s Orion 800G coherent DSP to develop a networking solution to support AI, cloud, and 5G. Marvell Technology also powers networking infrastructure on Dell EMC PowerEdge Servers and Dell's Storage arrays. Conclusion: Hold MRVL Before Q2 ResultsMarvell Technology’s upcoming quarterly results are likely to reflect the beginning of a multi-year growth story fueled by AI innovation. MRVL’s leading position in AI infrastructure, custom silicon and next-generation data center solutions makes it a must-own stock for investors betting on the future of AI-driven computing.While the stock trades at a premium valuation, its explosive growth prospects and strong financial execution make it a stock worth retaining before the second-quarter results.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dell Technologies Inc. (DELL): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report Coherent Corp. (COHR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks