Marvell Technology (NASDAQ: MRVL) Posts Record $2.74B Q2 Revenue, Raises FY2027 and FY2028 Outlook

Marvell Technology (NASDAQ: MRVL) reported record second-quarter fiscal 2027 revenue of $2.739 billion, up 36.5% year over year, as its Data Center segment posted 46% year-over-year revenue growth. GAAP diluted EPS reached $0.33, up from $0.22 in the same quarter a year earlier, while adjusted diluted EPS came in at $0.94.

Q2 FY2027 Results

• Revenue: $2.739 billion, a new record, up 36.5% year over year from $2.006 billion in Q2 FY2026, and $39.0 million above the midpoint of the company's prior guidance.
• GAAP gross margin: 53.1%; non-GAAP gross margin: 58.9%.
• GAAP operating income: $459.7 million, up 58.5% year over year, with GAAP operating margin expanding approximately 2.3 percentage points to 16.8%.
• GAAP net income: $308.0 million, or $0.33 per diluted share; adjusted net income of $865.9 million, or $0.94 per diluted share.
• Operating cash flow: $605.5 million for the quarter.

What Drove the Results

Revenue and GAAP operating income both expanded strongly year over year, with gross profit growth outpacing the rise in research and development expenses of $741.1 million, up 42.8% year over year, and selling, general and administrative expenses of $257.6 million, up 33.6% year over year. The operating margin expansion of approximately 2.3 percentage points to 16.8% reflects that revenue scaling offset the increase in operating costs. The divergence between GAAP net income of $308.0 million and adjusted net income of $865.9 million reflects the exclusion of items including stock-based compensation, amortization of acquired intangible assets, and other adjustments from the non-GAAP figure.

Chairman and CEO Matt Murphy noted that AI-related bookings remain robust and that the company expects revenue growth to accelerate through the remainder of fiscal 2027, citing broad-based strength in its Data Center portfolio across both Connectivity and its Custom business, with a significant acceleration in Custom expected in the second half of fiscal 2027.

Guidance Raised for Q3 and Beyond

Marvell raised its revenue outlook for both fiscal 2027 and fiscal 2028 relative to guidance provided last quarter. For the third quarter of fiscal 2027, the company expects net revenue of $3.150 billion, plus or minus 5%. GAAP gross margin is projected at 52.9% to 53.9%, and non-GAAP gross margin at 57.5% to 58.5%. GAAP diluted net income per share is guided at $0.53, plus or minus $0.05, and non-GAAP diluted EPS at $1.10, plus or minus $0.05. GAAP operating expenses are expected to be approximately $1.015 billion, with non-GAAP operating expenses of approximately $655 million. The company also announced an Investor Day scheduled for October 6, 2026, where it plans to share its long-term AI infrastructure strategy.

Wall Street View

Wall Street's analyst community remains broadly constructive on Marvell heading into the print, with the majority of covering analysts carrying Buy or Strong Buy ratings. The stock traded at $241.45 on Thursday, August 27, 2026, a decline of -1.49%, while the S&P 500 gained 0.66% on the same session.

Investor Takeaway

The record Q2 revenue and raised full-year guidance underscore that Marvell's Data Center business is scaling faster than prior forecasts anticipated, with the Custom silicon segment flagged as a specific acceleration catalyst in the second half of fiscal 2027. Investors will look to the October 6 Investor Day for quantified long-term targets and additional detail on how the Custom business ramp translates into sustained margin improvement beyond the current fiscal year.