Marvell Stock Drops 15% Following Soft Revenue Guidance Despite Beating Q4 Estimates

The semiconductor giant exceeded AI-driven revenue targets but disappointed investors with a cautious outlook for fiscal Q1 2026.

Marvell Technology reported Q4 2025 revenue of $1.82 billion, a 27% year-over-year increase, and adjusted earnings of $0.60 per share, both surpassing analyst expectations.
AI-related sales drove 75% of Q4 revenue, with total fiscal 2025 AI revenue exceeding the $1.5 billion target; the company aims to surpass $2.5 billion in AI revenue in fiscal 2026.
The company's Q1 2026 guidance projected revenue between $1.78 billion and $1.97 billion and adjusted EPS of $0.56 to $0.66, aligning with analyst estimates but falling short of heightened investor expectations.
Shares fell nearly 15% in after-hours trading as investors reacted to the perceived lack of aggressive growth momentum despite robust AI-driven performance.
Marvell highlighted strong demand for custom AI silicon and interconnect products, with volume production underway, reinforcing its position within the AI and data center markets.