Marvell Reports Record Revenue and Raises Outlook, Shares Drop Over 8%

In the second quarter, Marvell achieved a record revenue of $2.739 billion, representing a 37% increase year-over-year. The company also revised its revenue forecasts upward for fiscal years 2027 and 2028, expecting approximately $12 billion and $18 billion respectively. Despite these strong results and optimistic outlook, the market reacted negatively, with shares falling more than 8%. The decline was primarily driven by investor concerns over the delayed impact of a significant contract with Google, which the company's CEO indicated would only influence results starting in fiscal year 2029. This reaction underscores how even robust financial performance may not prevent stock declines if investors perceive that future growth prospects are less immediate or already priced in.