Marvell's Guidance Boost Tied to Connectivity, Not Google Deal
Marvell lifted its fiscal 2028 revenue outlook to about $18 billion, with CEO Matt Murphy saying connectivity rather than the Google agreement drove most of the $1.5 billion increase. GAAP gross margin rose for a fifth straight quarter to 53.1% in the quarter ended August 1, 2026. The stock's forward P/E roughly doubled from 23.7x in January to 48.0x on September 25, above its 35.3x average since late 2023.
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Marvell's fiscal 2028 outlook moved from $16.5 billion to roughly $18 billion. CEO Matt Murphy attributed the largest net increase to connectivity products, including 1.6T optical signal processors, scale-out switching expected to more than double this year, and scale-up optics that have grown well beyond the prior quarter's $300 million estimate. The Google warrant, disclosed August 19, covers up to 58,970,907 shares at $206.58 and custom programs Morgan Stanley links to as much as $120 billion in cumulative revenue through fiscal 2033.
Quarterly revenue rose to $2.74 billion for the period ended August 1, 2026, from $1.90 billion a year earlier, with year-over-year growth accelerating from 27% to 37%. GAAP gross margin reached 53.1%. Management still guides fiscal 2028 gross margin within the 57.5%-58.5% non-GAAP range even as lower-margin custom chips scale.
Count words. First para: Marvell's(1) fiscal(2) 2028(3) outlook(4) moved(5) from(6) $16.5(7) billion(8) to(9) roughly(10) $18(11) billion(12). CEO(13) Matt(14) Murphy(15) attributed(16) the(17) largest(18) net(19) increase(20) to(21) connectivity(22) products(23), including(24) 1.6T(25) optical(26) signal(27) processors(28), scale-out(29) switching(30) expected(31) to(32) more(33) than(34) double(35) this(36) year(37), and(38) scale-up(39) optics(40) that(41) have(42) grown(43) well(44) beyond(45) the(46) prior(47) quarter's(48) $300(49) million(50) estimate(51). The(52) Google(53) warrant(54), disclosed(55