Marvell Technology, Inc. (NASDAQ:MRVL) Just Reported Earnings, And Analysts Cut Their Target Price

There's been a notable change in appetite for Marvell Technology, Inc. (NASDAQ:MRVL) shares in the week since its second-quarter report, with the stock down 15% to US$62.87. Results were roughly in line with estimates, with revenues of US$2.0b and statutory earnings per share of US$0.22. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Marvell Technology's 39 analysts are now forecasting revenues of US$8.14b in 2026. This would be a notable 13% improvement in revenue compared to the last 12 months. Marvell Technology is also expected to turn profitable, with statutory earnings of US$2.22 per share. In the lead-up to this report, the analysts had been modelling revenues of US$8.24b and earnings per share (EPS) of US$1.03 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.

See our latest analysis for Marvell Technology

The average the analysts price target fell 5.5% to US$86.09, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Marvell Technology at US$122 per share, while the most bearish prices it at US$58.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Marvell Technology's rate of growth is expected to accelerate meaningfully, with the forecast 27% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 15% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Marvell Technology is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Marvell Technology's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Marvell Technology analysts - going out to 2028, and you can see them free on our platform here.

It might also be worth considering whether Marvell Technology's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.