Marvell Technology Delivers Record Q2 Revenue of $2.74 Billion, Up 37% Year-on-Year

Marvell Technology, Inc. (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions, reported record second-quarter revenue of $2.739 billion for the fiscal year 2027, representing a 37% year-on-year increase and surpassing the midpoint of the company's guidance by $39.0 million. The results were driven by continued robust demand across the company's Data Center portfolio, where revenue growth accelerated to 46% year-on-year.

On a GAAP basis, net income for the second quarter was $308.0 million, or $0.33 per diluted share. On a non-GAAP basis, which excludes stock-based compensation, amortization of acquired intangible assets, and other special items, net income was $865.9 million, or $0.94 per diluted share. Cash flow from operations for the quarter came in at $605.5 million, underscoring the company's strong operational efficiency and cash generation capabilities.

"Our Data Center portfolio continues to benefit from exceptionally robust AI-related bookings, and we expect our revenue growth to accelerate further through the remainder of fiscal 2027," said Matt Murphy, Marvell's Chairman and CEO. "Given this strength, we are again raising our revenue outlook for both fiscal 2027 and fiscal 2028 compared with the guidance we provided last quarter."

The Data Center segment, which accounts for 79% of total revenue, generated $2.172 billion in the quarter, up 46% year-on-year and 18% sequentially. The Communications and Other segment contributed $568 million, representing a 10% year-on-year increase but a 3% sequential decline. The company noted broad-based strength across its Data Center portfolio, including strong demand in Connectivity and a significant acceleration in its Custom business expected in the second half of fiscal 2027.

Looking ahead to the third quarter of fiscal 2027, Marvell provided a robust outlook. The company expects net revenue of approximately $3.150 billion, plus or minus 5%, representing a potential sequential increase of 15% from the record Q2 level. Non-GAAP gross margin is projected to be between 57.5% and 58.5%, while non-GAAP diluted earnings per share is forecast at $1.10, plus or minus $0.05. The company also expects diluted weighted-average shares outstanding of approximately 921 million for the quarter.

Marvell's balance sheet strengthened during the quarter, with cash and cash equivalents rising to $3.933 billion from $2.639 billion at the end of January 2026, driven by strong operating cash flow and financing activities. Total assets increased to $27.555 billion from $22.285 billion, reflecting the company's continued investment in growth and strategic acquisitions. The company's total debt stood at $4.963 billion, while total stockholders' equity was $18.532 billion, representing a healthy financial position.

The company's non-GAAP financial measures exclude the effect of stock-based compensation, amortization of acquired intangible assets, acquisition- and divestiture-rel costs, restructuring charges, and other special items. For the second quarter, the company applied a non-GAAP tax rate of 11.0%, compared with 10.0% in the prior year period. Marvell believes these non-GAAP measures provide important supplemental information to management and investors regarding financial and business trends, though they should not be considered a substitute for GAAP measures.

Marvell also announced that it will host an Investor Day on October 6, 2026, where the company will showcase its growth drivers and share its long-term strategy for enabling the continued expansion of AI infrastructure. The company's management team is confident that the secular trends in AI and data center infrastructure will continue to drive strong demand for Marvell's semiconductor solutions.

The company will conduct a conference call on Thursday, August 27, 2026, at 1:45 p.m. Pacific Time to discuss the results in further detail. A webcast will be available on the Marvell Investor Relations website, with a replay accessible for one week.

Overall, Marvell's Q2 results demonstrate the company's successful execution in capturing the AI-driven growth opportunity in the data infrastructure market. With record revenue, strong cash flow, and an optimistic outlook, the company appears well-positioned to continue its upward trajectory in the coming quarters. Investors will be watching closely for further updates at the upcoming Investor Day and the continued acceleration of the Custom business in the second half of the fiscal year.