Marvell Technology, Inc.

Marvell reported second-quarter fiscal 2027 revenue of $2.739 billion, up 13% sequentially and 37% year over year. Non-GAAP EPS was $0.94, and GAAP EPS was $0.33. Gross margin was 53.1% GAAP and 58.9% non-GAAP; non-GAAP operating margin was 36.6%, up 160 basis points sequentially and 180 basis points year over year. Data center revenue was $2.17 billion, up 18% sequentially and 46% year over year, while communications and other revenue was $568 million, down 3% sequentially and up 10% year over year. For Q3 FY2027, Marvell guided to revenue of $3.15 billion, plus or minus 5%, GAAP EPS of $0.48 to $0.58, and non-GAAP EPS of $1.05 to $1.15. Management expects FY2027 revenue to grow about 45% year over year to roughly $12 billion, and FY2028 revenue of approximately $18 billion, with Data Center revenue growing more than 60% in FY2028.

Matt Murphy framed the quarter as evidence that Marvell’s AI data center exposure is strengthening faster than expected. He emphasized that growth is broad-based across interconnect, switching, custom, and emerging scale-up optics, and said the company is getting more optimistic about the size and timing of these opportunities. His tone was highly confident, especially around FY2028 and beyond, but he repeatedly deferred specific long-term numbers to the upcoming Investor Day.

Dan Durn highlighted strong operating leverage and said his focus is scaling efficiently while expanding margins, cash flow, and shareholder returns. He cited Q2 revenue of $2.739 billion, GAAP gross margin of 53.1%, non-GAAP gross margin of 58.9%, non-GAAP operating margin of 36.6%, and non-GAAP EPS of $0.94. He also noted $606 million of operating cash flow, $1.36 billion of inventory, $200 million of share repurchases, $54 million of dividends, and $4.96 billion of total debt; he said Marvell remains on pace for about $1 billion of capacity prepayments in FY2027.

Analysts focused heavily on the Google commercial agreement and how much of the reported long-term upside is already embedded in guidance versus still ahead. Management said much of the warrant-related revenue is already included in next year’s plan, but that FY2029 and beyond should benefit materially and that custom revenue will be well above prior modeled ranges. Questions also centered on scale-up optics, CXL, copper-to-optics transition, and the large XPU program; management said CXL is seeing strong adoption for memory expansion and inference, while scale-up optics and switching are accelerating meaningfully and broadening across multiple customer architectures.