Marvell Posts Record $2.74 Billion Revenue
The data-infrastructure chipmaker guided third-quarter fiscal 2027 net revenue to $3.150 billion, plus or minus 5%.
Marvell Technology (MRVL) reported second-quarter fiscal 2027 net revenue of $2.739 billion, a record that was $39.0 million above the midpoint of the outlook it had issued on May 27, 2026.
Year-over-year growth accelerated to 37% from 28% in the prior quarter and 22% in the quarter before that. Sequential revenue rose 13% from $2.418 billion.
Chairman and CEO Matt Murphy said the record was driven by continued strong demand across the Data Center portfolio, where revenue growth accelerated to 46% year over year. He said AI-related bookings remain exceptionally robust and that the company expects revenue growth to accelerate further through the remainder of fiscal 2027.
Data center sales were $2.172 billion, up 46% from a year earlier and 18% from the prior quarter, and accounted for 79% of total revenue, up from 76% in the prior quarter and 74% a year earlier. Communications and other revenue was $567.8 million, down 3% sequentially and up 10% year over year, and accounted for 21% of the total.
Murphy said the company is seeing broad-based strength across the Data Center portfolio, including strong demand in Connectivity and a significant acceleration in the Custom business beginning in the second half of fiscal 2027. He said Marvell is again raising its revenue outlook for both fiscal 2027 and fiscal 2028 compared with the guidance provided last quarter, after already significantly raising those outlooks in the prior release. The company plans an Investor Day on October 6, 2026.
GAAP net income was $308.0 million, or $0.33 a share, versus $34.5 million, or $0.04 a share, in the prior quarter and $194.8 million, or $0.22 a share, a year earlier. Non-GAAP net income was $865.9 million, or $0.94 a share, versus $718.0 million, or $0.80 a share, in the prior quarter and $585.5 million, or $0.67 a share, a year earlier.
GAAP gross margin expanded to 53.1% from 52.1% in the prior quarter and 50.4% a year earlier. Non-GAAP gross margin was 58.9%, unchanged from the prior quarter and down from 59.4% a year earlier. GAAP operating margin expanded to 16.8% from 14.0% in the prior quarter and 14.5% a year earlier. Non-GAAP operating margin expanded to 36.6% from 35.0% in the prior quarter and 34.8% a year earlier.
Research and development expense rose to $741.1 million from $652.3 million in the prior quarter and $519.0 million a year earlier. Cash flow from operations was $605.5 million, down from a record $638.8 million in the prior quarter.
For the third quarter of fiscal 2027, the company expects net revenue of $3.150 billion, plus or minus 5%, above the $2.700 billion midpoint it had given for the quarter just reported. Non-GAAP diluted net income per share is expected to be $1.10, plus or minus $0.05, versus $0.93, plus or minus $0.05, in the prior quarter’s outlook for the quarter just reported. GAAP diluted net income per share is expected to be $0.53, plus or minus $0.05.
GAAP gross margin is expected to be 52.9% to 53.9%. Non-GAAP gross margin is expected to be 57.5% to 58.5%. GAAP operating expenses are expected to be approximately $1.015 billion. Non-GAAP operating expenses are expected to be approximately $655 million.