Marvell (MRVL1) Q2 2027 Earnings Report

The call was strongly positive: Marvell reported record Q2 revenue and EPS, significantly raised its fiscal 2027 and 2028 revenue outlooks, and highlighted broad-based acceleration in the strategic Data Center, connectivity and custom businesses (including a large warrant-backed hyperscaler agreement). Near-term issues include quarter-to-quarter lumpiness in Communications, modest gross margin mix pressure from a custom ramp, higher operating expense guidance to fund growth, and planned capacity prepayments that modestly pressure near-term cash flow. Overall the magnitude and breadth of the upside guidance and margin expansion outweigh the near-term operational and mix headwinds.

Marvell guided Q3 FY2027 revenue at $3.15 billion ±5% (midpoint ~15% sequential growth and >50% YoY), GAAP gross margin 52.9–53.9% and non‑GAAP gross margin 57.5–58.5%, GAAP operating expense ~ $1.015 billion and non‑GAAP operating expense ~ $655 million, GAAP other expense ~ $86 million (non‑GAAP ~ $36 million), a non‑GAAP tax rate of ~11%, basic shares ~900 million and diluted ~921 million, GAAP EPS of $0.48–$0.58 and non‑GAAP EPS of $1.05–$1.15; for fiscal 2027 Marvell now expects revenue of roughly $12 billion (~45% YoY) with Data Center growth of ~60% (up from ~50%), non‑GAAP opex of ~ $2.55 billion and ~ $1 billion of capacity prepayments planned, and looking to fiscal 2028 the company expects revenue of ~ $18 billion (~50% YoY) with Data Center >60% growth, custom to more than double, a non‑GAAP tax rate ~13%, non‑GAAP opex growing at roughly half the revenue rate, and non‑GAAP operating margin entering the 38–40% target range in Q4 and reaching the high end through FY‑28.