Rigetti Computing posts Q4 sales that fall short of expectations

Marvell Technology’s robust outlook is carrying the day after the custom chip designer’s Q4 results came in only fractionally above estimates.

For the final quarter of its fiscal 2026, the custom chip designer reported:

• Net revenue of $2.22 billion (estimate: $2.21 billion).

• Adjusted net income per share of $0.80 (estimate: $0.79).

For Q1, management offered guidance for:

• Net revenue of $2.4 billion, plus or minus 5% (estimate: $2.28 billion).

• Adjusted net income per share of $0.79, plus or minus $0.05 (estimate: $0.75).

During the conference call, management said that full-year sales for fiscal 2027 would be “approaching $11 billion,” up from its guidance of “approximately $10 billion” in December.

“We expect Marvell’s overall revenue in fiscal 2028 to grow close to 40% year over year, reaching approximately $15 billion, roughly $2 billion higher than the outlook we provided in our December earnings call and driving our non-GAAP EPS to well over $5,” said CEO Matt Murphy on the conference call.

The Street estimated Marvell’s full-year sales for fiscal 2027 (roughly calendar year 2026) would be a little over $10 billion and a little less than $13 billion for the following year, roughly in line with the firm’s previous guidance.

Shares extended gains to up 12% after this boost to the outlook.

There had been massive uncertainty about the status of Marvell’s relationships with its two biggest hyperscaler clients going forward, with some analysts and media reports indicating that the firm was going to lose some of this business and others saying these custom chip programs remain on track.

“In addition to our strong results and outlook, our design wins in fiscal 2026 hit an all-time record, which we expect will continue to fuel our future growth,” said Murphy in a press release. The reference to “design wins,” in concert with the raised guidance, appear to be alleviating some of traders’ concerns about customer migration.