Marvell Technology NASDAQ: MRVL reported record revenue for its first fiscal quarter of 2027 and raised its revenue outlook for both fiscal 2027 and fiscal 2028, citing accelerating demand across its data center portfolio and continued customer investment in artificial intelligence infrastructure.
Chairman and Chief Executive Officer Matt Murphy said Marvell generated first-quarter revenue of $2.418 billion, up 9% sequentially and 28% from a year earlier. The result exceeded the midpoint of the company’s guidance, while non-GAAP earnings per share of $0.80 came in $0.01 above the midpoint of guidance.
“We are seeing strong demand and exceptional bookings across our entire data center portfolio,” Murphy said.
Chief Financial Officer Willem Meintjes said data center was Marvell’s largest end market in the quarter, contributing 76% of total revenue. GAAP gross margin was 52.1%, while non-GAAP gross margin was 58.9%. GAAP earnings per diluted share were $0.04, and non-GAAP earnings per diluted share rose 29% year over year to $0.80.
Marvell Lifts Fiscal 2027 and 2028 Revenue Outlook
For the second fiscal quarter, Marvell expects revenue of $2.7 billion, plus or minus 5%, representing 12% sequential growth and 35% year-over-year growth at the midpoint. The company guided for GAAP earnings per diluted share of $0.32 to $0.42 and non-GAAP earnings per diluted share of $0.88 to $0.98.
Murphy said the company now expects revenue to grow by at least 10% sequentially in both the third and fourth quarters, reaching $3 billion in quarterly revenue in the third quarter, one quarter earlier than previously expected. Marvell now expects fiscal 2027 revenue to grow approximately 40% year over year to nearly $11.5 billion, up by more than $500 million from the outlook provided last quarter.
Looking further ahead, Murphy said Marvell now expects fiscal 2028 revenue to reach approximately $16.5 billion, about $1.5 billion higher than its prior outlook. That would represent roughly 45% year-over-year growth off a higher fiscal 2027 base.
The revised outlook is being driven primarily by the data center business, which Marvell now expects to grow approximately 50% in fiscal 2027 and approximately 55% in fiscal 2028. Murphy said Marvell’s interconnect business is expected to grow more than 70% year over year in fiscal 2027, above the company’s prior expectation of 50% growth.
Data Center Demand Anchors Growth
Marvell’s data center revenue reached a record $1.83 billion in the first quarter, up 11% sequentially and 27% year over year. Murphy said the company saw growth across optical interconnect, custom silicon and switching products.
For the second quarter, Marvell expects data center revenue to grow in the mid- to high-teens percentage range sequentially and in the mid-40% range year over year. Murphy said networking is becoming more critical as AI architectures evolve, including reasoning models, mixture-of-experts systems and agentic AI workloads.
Murphy said agentic AI could increase demand for Marvell’s interconnect, switching and XPU attach businesses because a single user request may require multiple model queries routed across different parts of an AI cluster. He said that dynamic increases the need for low-latency data transmission, switching and memory.
Marvell also discussed several growth areas within data center:
- Interconnect: The company expects fiscal 2027 revenue in this business to grow more than 70% year over year, supported by demand for 800G products and a ramp in 1.6T solutions.
- DCI modules: Murphy said Marvell has line of sight to a $1 billion annualized revenue run rate during fiscal 2028, compared with roughly $500 million in fiscal 2026.
- Switching: Marvell expects scale-out switch revenue in fiscal 2027 to exceed $600 million, doubling from fiscal 2026, and sees the business tracking to more than $1 billion in annualized revenue in fiscal 2028.
- Custom silicon: The company expects custom revenue to grow more than 20% year over year in fiscal 2027 and to more than double in fiscal 2028.
NVIDIA Partnership and Recent Acquisitions Highlight AI Focus
Murphy highlighted Marvell’s expanded partnership with NVIDIA, which he said connects Marvell’s custom silicon and optical networking capabilities into NVIDIA’s ecosystem for AI data centers and telecommunications networks. He described three pillars of the collaboration: optics, NVLink Fusion integration and AI RAN.
Under the optics partnership, Marvell is extending its existing relationship with NVIDIA to collaborate on silicon photonics technology. NVLink Fusion integration will allow Marvell to build custom chips and networking semiconductors that interface with NVIDIA infrastructure. In AI RAN, Murphy said Marvell will enhance its OCTEON base station processors to work directly with NVIDIA GPUs.
Marvell also discussed its acquisition of Polariton, a developer of high-speed, low-power plasmonics-based silicon photonics devices. Murphy said Polariton has demonstrated plasmonic modulator bandwidth exceeding one terahertz, and Marvell plans to incorporate the technology into its DCI and coherent light roadmaps.
Murphy said the acquisition of Celestial AI added photonic fabric technology, including EAM modulators and low-power analog SerDes, and that the solution has been selected by a tier 1 hyperscaler for next-generation XPU scale-up networks. Marvell also acquired XConn, adding PCIe and CXL switch solutions and expanding its scale-up switching capabilities.
Communications Segment Recovers From Inventory Correction
Revenue from Marvell’s communications and other end market was $585 million in the first quarter, up 3% sequentially and 29% year over year. For the second quarter, the company expects revenue in that segment to decline in the mid-single-digit percentage range sequentially while growing in the high-single-digit range year over year.
Murphy said the segment has “largely recovered from inventory corrections” at customers and that future revenue is expected to broadly reflect trends in enterprise networking, carrier and consumer businesses. Marvell continues to expect approximately 10% growth in this end market in fiscal 2027 and low-single-digit percentage growth in fiscal 2028.
Cash Flow, Buybacks and Capacity Investments
Meintjes said Marvell generated record operating cash flow of $639 million in the first quarter. Inventory was $1.4 billion at quarter-end, nearly flat with the prior quarter. The company repurchased $200 million of stock and paid $54 million in cash dividends during the quarter.
Marvell ended the quarter with total debt of $4.96 billion, a gross debt-to-EBITDA ratio of 1.44 times and a net debt-to-EBITDA ratio of 0.32 times.
Meintjes said Marvell plans to continue investing in growth while driving operating leverage. The company expects fiscal 2027 non-GAAP operating expenses of about $2.45 billion, including the Celestial AI and XConn acquisitions. For fiscal 2028, non-GAAP operating expenses are expected to grow in the mid- to high-teens percentage range, below the company’s revenue growth outlook.
Marvell is also moving to secure additional supply. Meintjes said the company is forecasting approximately $1 billion in prepayments during fiscal 2027, beginning in the second quarter, to be applied against future material purchases. He said the company expects to fund those prepayments through its balance sheet and operating cash flow while continuing to repurchase shares to manage dilution.
In the question-and-answer session, Murphy said Marvell remains on track toward its target of more than $10 billion in custom business revenue in fiscal 2029. He said the outlook is based on existing programs, a new ramp and a broad set of XPU attach programs.
“Our results and outlook reinforce our confidence that Marvell is in a strong multi-year growth cycle with substantial runway ahead,” Murphy said.
About Marvell Technology NASDAQ: MRVL
Marvell Technology Group is a global semiconductor company that designs and develops integrated circuits and related software for data infrastructure, networking, storage and connectivity markets. The company's product portfolio includes system-on-chip (SoC) solutions, Ethernet physical-layer transceivers (PHYs), switch and switch silicon, optical interconnect components, storage controllers, and security processors. Marvell's technology is used to enable high-performance data centers, carrier networks, enterprise and cloud storage, as well as connectivity in automotive and industrial applications.
Founded in 1995 and headquartered in Santa Clara, California, Marvell has grown through both organic development and strategic acquisitions to broaden its capabilities across networking and data interconnect.
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