Marvell Technology (MRVL) Q2 2027 Financial Results Summary
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Marvell Technology, Inc. (MRVL) Q2 2027: Record Revenue Growth — Strongly Positive
Marvell Technology, Inc. (NASDAQ: MRVL) reported a remarkable second quarter for fiscal year 2027, achieving net revenue of $2.739 billion, which represents a $733 million increase or +37% year-over-year. This performance not only sets a new record for the company but also exceeds the midpoint of the company's prior guidance by $39 million.
This quarter is undoubtedly a positive outcome for shareholders. The substantial revenue growth is indicative of strong demand across Marvell's Data Center portfolio, which saw revenue growth accelerate to 46% year-over-year. The company's ability to exceed guidance and achieve record revenue reflects robust operational execution and a favorable market environment, particularly in AI-related bookings.
Key Financial Metrics:
- Net Revenue: $2.739 billion, up $733 million or +37% YoY
- GAAP Gross Margin: 53.1%
- Non-GAAP Gross Margin: 58.9%
- GAAP Diluted EPS: $0.33
- Non-GAAP Diluted EPS: $0.94
- GAAP Net Income: $308 million
- Non-GAAP Net Income: $865.9 million
- Cash Flow from Operations: $605.5 million
Marvell's gross margins remain healthy, with a GAAP gross margin of 53.1% and a non-GAAP gross margin of 58.9%. The company reported a GAAP net income of $308 million, translating to a GAAP diluted EPS of $0.33. On a non-GAAP basis, net income reached $865.9 million, resulting in a non-GAAP diluted EPS of $0.94. The cash flow from operations of $605.5 million further underscores the company's strong financial health.
Dividend and Share Buyback:
There were no announcements regarding dividends or share buybacks in this quarter's report. However, the strong cash flow from operations positions Marvell well for potential future capital returns to shareholders.
Guidance for Q3 FY 2027:
Looking ahead, Marvell has raised its revenue outlook for the third quarter of fiscal 2027, projecting net revenue of $3.150 billion with a variance of +/- 5%. The company expects GAAP gross margins to be between 52.9% and 53.9%, and non-GAAP gross margins to range from 57.5% to 58.5%. Additionally, GAAP diluted EPS is anticipated to be $0.53 +/- $0.05, while non-GAAP diluted EPS is expected to be $1.10 +/- $0.05.
Analyst Commentary:
The results from this quarter are a testament to Marvell's strategic focus on the Data Center market and its ability to capitalize on the growing demand for AI infrastructure. The acceleration in revenue growth, particularly in the Data Center segment, is a strong indicator of the company's competitive positioning and operational effectiveness.
Investors should closely monitor the upcoming Investor Day on October 6, 2026, where Marvell plans to showcase its growth drivers and long-term strategy for AI infrastructure. This event could provide further insights into the company's future trajectory and potential catalysts for growth.
In summary, Marvell's Q2 FY 2027 results reflect a strong performance that not only meets but exceeds expectations, positioning the company favorably for continued growth in the rapidly evolving semiconductor landscape.
Note: All amounts in the following tables are in millions.
| Three Months Ended | August 1, 2026 | May 2, 2026 | August 2, 2025 | Six Months Ended | August 1, 2026 | August 2, 2025 |
|---|---|---|---|---|---|---|
| Net revenue | 2,739.0 | 2,417.0 | 2,006.0 | 5,156.0 | 3,901.0 | 3,453.0 |
| Cost of goods sold | 1,284.0 | 1,157.0 | 995.5 | 2,442.0 | 1,938.0 | 1,727.5 |
| Gross profit | 1,455.0 | 1,260.0 | 1,010.5 | 2,714.0 | 1,963.0 | 1,725.5 |
| Operating expenses | ||||||
| Research and development | 741.1 | 652.3 | 519.0 | 1,390.0 | 1,026.0 | 852.6 |
| Selling, general and administrative | 257.6 | 258.4 | 192.8 | 516.0 | 379.2 | 302.5 |
| Restructuring and related charges (gain) | -2.8 | 10.7 | 8.7 | 7.9 | -3.6 | -0.7 |
| Total operating expenses | 995.9 | 921.4 | 720.5 | 1,914.0 | 1,402.0 | 1,154.4 |
| Operating income | 459.7 | 339.4 | 290.1 | 799.1 | 560.7 | 571.1 |
| Interest expense | -61.6 | -52.8 | -51.9 | -114.4 | -100.6 | -114.6 |
| Other expense, net | -19.8 | -203.3 | -4.5 | -223.0 | -10.5 | -9.5 |
| Income (loss) before income tax | 378.3 | 83.3 | 233.7 | 461.6 | 449.6 | 446.5 |
| Provision for income tax | 70.3 | 48.8 | 38.9 | 119.1 | 76.9 | 73.5 |
| Net income | 308.0 | 34.5 | 194.8 | 342.5 | 372.7 | 372.8 |
| Net income per share - basic | 0.34 | 0.04 | 0.23 | 0.39 | 0.43 | 0.43 |
| Net income per share - diluted | 0.33 | 0.04 | 0.22 | 0.38 | 0.43 | 0.43 |
| Weighted-average shares used to compute net income per share, basic | 897.4 | 882.0 | 862.6 | 889.6 | 863.7 | |
| Weighted-average shares used to compute net income per share, diluted | 921.2 | 893.3 | 870.4 | 907.1 | 873.0 |
| August 1, 2026 | January 31, 2026 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | 3,932.8 | 2,638.8 |
| Accounts receivable, net | 2,218.4 | 2,186.6 |
| Inventories | 1,360.6 | 1,388.0 |
| Prepaid expenses and other current assets | 407.5 | 247.2 |
| Total current assets | 7,919.3 | 6,460.6 |
| Property and equipment, net | 1,071.0 | 935.0 |
| Goodwill | 13,873.9 | 11,062.2 |
| Acquired intangible assets, net | 2,346.6 | 1,754.7 |
| Deferred tax assets | 322.3 | 345.9 |
| Other non-current assets | 2,021.5 | 1,726.9 |
| Total assets | 27,554.6 | 22,285.3 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Accounts payable | 797.9 | 1,073.8 |
| Accrued liabilities | 1,425.8 | 1,337.1 |
| Accrued employee compensation | 275.8 | 309.8 |
| Short-term debt | — | 499.8 |
| Total current liabilities | 2,499.5 | 3,220.5 |
| Long-term debt | 4,962.9 | 3,970.8 |
| Other non-current liabilities | 1,560.6 | 785.6 |
| Total liabilities | 9,023.0 | 7,976.9 |
| Stockholders’ equity: | ||
| Preferred stock | — | — |
| Common stock | 1.8 | 1.7 |
| Additional paid-in capital | 16,939.2 | 12,950.9 |
| Retained earnings | 1,590.6 | 1,355.8 |
| Total stockholders’ equity | 18,531.6 | 14,308.4 |
| Total liabilities and stockholders’ equity | 27,554.6 | 22,285.3 |
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