Marvell Technology Q2 Revenue Up 37% YoY, Raises FY2027 and FY2028 Guidance, But Shares Fall Over 3% After Hours

TradingKey - Marvell Technology (MRVL) fell over 3% at one point after reporting its second-quarter fiscal 2027 financial results on August 27 Eastern Time. As of press time, the stock was still down 2.17% at $236.20.

During the period, Marvell's net revenue grew 37% year-over-year and 13% sequentially to $2.739 billion, setting a quarterly revenue record, exceeding market expectations of about $2.71 billion and coming in about $39 million above the midpoint of the guidance provided by the company on May 27.

[Source: TradingView]

By business segment, data center revenue grew 46% year-over-year to $2.172 billion, with growth further accelerating from the previous quarter and its share of total revenue rising to 79% from 74% in the same period last year; communications and other revenue reached $568 million, up 10% year-over-year and down 3% sequentially.

On the profitability front, under GAAP, Marvell's net income for the second fiscal quarter was $308 million, or $0.33 per diluted share. Under non-GAAP, net income was $866 million, with adjusted EPS of $0.94, slightly above the market expectation of $0.93. Regarding gross margin, non-GAAP gross margin was 58.9% and GAAP gross margin was 53.1%. Cash flow from operations for the second quarter was $606 million.

[Source: Marvell]

Matt Murphy, Chairman and CEO of the company, stated, "Revenue growth in our data center portfolio accelerated to 46% year-over-year, and AI-related bookings remain exceptionally strong. We expect revenue growth to accelerate further over the remainder of fiscal 2027. Given this strong momentum, we are once again raising our revenue outlook for fiscal 2027 and fiscal 2028."

He also revealed that data center product lines showed broad-based strength, including strong demand in the Connectivity business and a significant acceleration in the Custom silicon business starting in the second half of fiscal 2027. The company will host an Investor Day on October 6 to share its long-term strategy supporting the continuous expansion of AI infrastructure.

In terms of guidance, Marvell expects third fiscal quarter revenue to be $3.15 billion (plus or minus 5%); GAAP gross margin is expected to be 52.9%-53.9%, and non-GAAP gross margin is expected to be 57.5%-58.5%. GAAP diluted earnings per share is expected to be $0.53 (plus or minus $0.05), and non-GAAP diluted earnings per share is expected to be $1.10 (plus or minus $0.05).