Marvell Raises Price Target and 2026-28 EPS 16% After 22% Q4 Growth
Marvell reported fiscal Q4 net revenue of $2.219 billion, up 22% year-over-year, with GAAP gross margin of 51.7% and EPS of $0.46, then guided Q1 revenue of $2.4 billion ±5% and GAAP EPS $0.31 ±$0.05. Goldman Sachs raised its price target and boosted 2026-28 EPS estimates by 16% after the beat.
1. Q4 Financial Results
Marvell posted record fiscal Q4 net revenue of $2.219 billion, up 22% year-over-year, driven by strong demand in its data center and connectivity segments. GAAP gross margin reached 51.7%, with diluted EPS of $0.46, comfortably surpassing consensus forecasts and reversing prior concerns about key customer losses.
2. Q1 Guidance and DCI Growth
The company guided first-quarter fiscal 2027 revenue of $2.4 billion ±5% and GAAP EPS of $0.31 ±$0.05, reflecting ongoing margin expansion despite anticipated custom silicon mix. Marvell highlighted plans to supply DCI modules to all five major U.S. hyperscalers this year, citing a total addressable market set to grow over fivefold by 2030.
3. Goldman Sachs Upgrade
Following the results, Goldman Sachs raised its price target on Marvell and boosted 2026-2028 EPS estimates by an average 16%, noting increased visibility into medium-term fundamentals. The firm projects modest gross-margin erosion of approximately 0.25% quarter-over-quarter in 2026 and 0.5% in 2027 due to custom silicon allocations.