Semiconductor giant Marvell Technology (MRVL +5.77%) gained 4% through 12:05 p.m. ET Wednesday after eking out small wins on sales and earnings in its fiscal Q3 2026 report last night.
Analysts forecast Marvell would earn $0.74 per share, pro forma, on sales of $2.07 billion. Marvell actually earned $0.76 per share on sales of $2.075 billion.
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Marvell Q3 earnings
That may not sound like much of a beat, but put it in context: Marvell grew sales a powerful 37% year over year. What's more, while the company's non-GAAP earnings were $0.76, and ahead of expectations, earnings as calculated according to generally accepted accounting principles (GAAP) were even better -- $2.20 per share, and literally ten times the profit Marvell earned in the year-ago quarter.
CEO Matt Murphy credited "strong demand for our data center products" (i.e., artificial intelligence chips) for its success in the quarter. He went on to promise "a strong finish to the fiscal year," "robust growth in the fourth quarter," and specifically, revenue growth accelerating even more to 40%.
NASDAQ: MRVL
Key Data Points
Is Marvell stock a buy?
So you can see why investors would be pleased with this report.
Looking ahead to Q4, Marvell says revenue will be about $2.2 billion, plus or minus 5%, pro forma profit $0.79 per share, plus or minus a nickel, and GAAP profit $0.36 per share, also plus or minus $0.05. Added to the $2.61 per share Marvell has already earned this year, this implies full-year profit of nearly $3 per share.
Granted, at 32 times earnings, Marvell may not look "cheap" by ordinary metrics. But a 40% growth rate can turn even expensive-looking stocks into a bargain. I think that's the case with Marvell stock today.
