So, you know how everyone's talking about AI? Well, it's not just hype for Marvell Technology Inc. (MRVL). The chip designer just reported its fourth-quarter numbers for fiscal 2026, and the story is pretty simple: AI demand is real, and it's fueling their business.
The company posted revenue of $2.22 billion, which was a bit better than the $2.21 billion analysts were expecting. On the profit side, adjusted earnings came in at 80 cents per share, edging out the consensus estimate of 79 cents per share. The real kicker is the growth rate: total revenue was up 22% compared to the same quarter last year. That's not a typo. The company directly credits "robust" demand for artificial intelligence products.
It generated $373.7 million in cash from operations during the quarter, which is always a nice sign of a healthy business model.
But here's the part that gets investors excited: the future. CEO Matt Murphy said the company expects its year-over-year revenue growth to actually speed up with each passing quarter in the upcoming fiscal year 2027. The main driver? You guessed it—the data center business, where bookings are apparently growing at a record pace.
"We expect year-over-year revenue growth to accelerate each quarter in fiscal 2027, driven by continued strength in our data center business, with bookings continuing to grow at a record pace," Murphy said.
To put some numbers on that optimism, Marvell gave its outlook for the current quarter. It's guiding for first-quarter revenue of about $2.40 billion, give or take 5%. For adjusted earnings, it's looking at 79 cents per share, plus or minus a nickel. Management will hash out all the details on a conference call with analysts.
Now, let's talk about the stock. Heading into this earnings report, Marvell shares had been having a rough 2024, down roughly 10% for the year. The market, it seems, was waiting to see the proof in the AI pudding. Well, the proof arrived. After the numbers hit, the stock jumped over 8% in after-hours trading, changing hands around $82.27. Sometimes a good report is all it takes to change the narrative.
