Earnings Edge for Thursday: Marvell, Costco, JD.com, Guidewire, Kroger, Bilibili, Burlington Stores, Ciena, Gap, and Many More
Relative winners and losers over the last quarter, followed by names of note, concluding with a spreadsheet containing setup tables for all of the day’s reporters.
Relative Winners and Losers
Names of Note
Marvell Technology (MRVL)
Bull Scenario
Q3 FY2026 beat expectations with $2.075 billion revenue (up 37% YoY) and $0.76 EPS (vs $0.67 expected), while the $3.25-$5.5 billion Celestial AI acquisition positions Marvell to capture optical interconnect opportunities in AI data centers. Data center revenue grew 38% YoY with management guiding for 25%+ growth in FY2027, validating AI infrastructure tailwinds.
Amazon’s AWS endorsement of the Celestial acquisition and customer demand for custom XPU connectivity demonstrate that Marvell’s networking silicon is essential for next-generation AI deployments. The company’s PCIe retimers being adopted by leading providers strengthens its positioning across the AI stack.
At current levels down 18% YTD despite strong execution, Marvell trades at a discount to semiconductor peers benefiting from AI spending. Record $582 million operating cash flow and the strategic move into optical connectivity ahead of competitors create long-term differentiation in scale-up networking.
Bear Scenario
The Celestial AI acquisition for up to $5.5 billion (contingent on milestones) introduces significant execution risk and potential overpayment, as the startup was valued at $2.5 billion just months earlier in March 2025. Integration challenges and the need to hit aggressive revenue targets to justify the earn-out create uncertainty.
Custom chip revenue saw sequential decline in Q3 despite overall data center strength, suggesting customer concentration risk and lumpy project-based revenues that could disappoint if hyperscalers delay deployments or shift to alternative suppliers like Broadcom for networking solutions.
Marvell’s stock underperformance relative to Broadcom and Nvidia reflects market skepticism that the company can sustainably monetize AI opportunities. The sale of automotive ethernet business (completed August 2025) removes a revenue stream, and if optical interconnect adoption is slower than expected, the Celestial premium looks unjustified.
Costco Wholesale (COST)
