Table of Contents
Most of this week’s content has already been sent:
Next week will be a busy one. I will be publishing Palo Alto, MongoDB, Snowflake, Broadcom, Zscaler and Salesforce earnings reviews.
1. Marvell Technology (MRVL) – Brief Earnings Snapshot
Demand:
Marvell beat revenue estimates by 1% & beat guidance by 1.4%. Data center revenue was 1% ahead of estimates while communications and other revenue was 0.9% ahead.
Profits:
Met GPM estimates & beat 58.75% guidance by 15 basis points (bps; 1 basis point = 0.01%).
Beat EBT estimate by 0.7% & beat guidance by 1.7%.
Missed GAAP operating cash flow (OCF) estimates by 30%. This metric is highly volatile and noisy on a quarterly basis.
For example, accounts payable and change in warrant fair value helped Q2-2026 FCF margin a lot. That’s why it was 62%.
Met $0.94 EPS estimate & beat $0.93 guidance by $0.01.
Balance Sheet:
$3.93B cash & equivalents.
29% Y/Y inventory growth.
$4.96B long-term debt.
5.9% Y/Y dilution.
Q3 Guidance:
Revenue guidance beat by 4.0%.
58% GPM guidance missed by 50 basis points.
$1.10 EPS guidance beat by $0.03.
For fiscal year 2028, the company raised full year revenue guidance from $16.5B to $18.0B. This beat $16.9B estimates by 6.5%. This includes 60% expected Y/Y data center growth and 50% Y/Y overall growth.
Valuation:
MRVL trades for 53x forward EPS. EPS is expected to grow by 56% this year and by 68% next year.
2. Salesforce (CRM) – Brief Earnings Snapshot
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Demand:
Slightly beat revenue estimate & slightly beat guidance.
11% constant currency growth beat 10% growth guidance; 7% organic constant currency growth beat 6% growth guidance.
Remaining performance obligations (RPO) missed by 2%.
AI + Data ARR rose 210% Y/Y to $3.9B with a lot of help from $1.1B in Informatica ARR added via M&A.
Profits:
Beat $1.80 GAAP EPS estimate by $0.06 & beat guidance by $0.11 ex-investment gain help.
Beat $3.27 EPS estimate by $0.11 ex-investment gain help.
Beat EBIT estimate by 1.8%.
Beat FCF estimate by 60%. A big $891M accounts payable benefit vs. a $217M headwind last year helped FCF growth a lot. As always, best to focus on annual cash flow generation.
Balance Sheet:
$11.3B in cash & equivalents.
$11.3B in investments.
$39B debt.
Share count fell by 15% Y/Y. As a reminder, they raised $25B in debt earlier in the year to greatly accelerate buybacks.
Guidance:
Slightly raised revenue guide which slightly beat.
Raised 10.5% CC revenue growth guide to 11% growth.
Reiterated EBIT margin guide which met (slightly raised EBIT dollar guide).
Raised $14.09 EPS guide by $0.05 which slightly beat.
Reiterated operating cash flow growth guidance which slightly beat.
Q3 guidance was modestly ahead across the board.
Valuation:
Salesforce trades for 18x forward EPS. EPS is expected to grow by 29% this year and by -2.1% next year. That’s because it will now be lapping large equity gains from this quarter. It also trades for 14x forward FCF. FCF is expected to grow by 4% this year and by 10% next year.
3. Okta (OKTA) – Brief Earnings Snapshot
Demand:
Beat revenue estimate by 1.3% & beat guidance by 1.6%.
Beat current remaining performance obligation (cRPO; next 12 month backlog) estimate by 2.9% & beat guidance by 2.9%.
Profits:
Beat 81.9% GPM estimate by 10 basis points (bps; 1 basis point = 0.01%).
Beat EBIT estimate by 9.2% & beat guidance by 9.8%.
Beat $0.96 EPS estimate by $0.09 & beat guidance by $0.09.
Beat FCF estimate by 42%.
Balance Sheet:
$2.3B cash & equivalents.
0.5% Y/Y dilution.
Guidance:
Raised annual revenue guidance 1% which beat estimates by 0.8%.
Raised annual EBIT guidance by 2.3% which beat estimates by 1.7%.
Raised annual $3.83 EPS guidance by $0.09 which beat estimates by $0.08.
Raised annual FCF guidance by 6.9% which beat estimates by 6.3%.
Q3 revenue, current backlog and profit guidance was all modestly ahead across the board.
Valuation:
4. Thoughts on software earnings so far
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