Marvell Technology — 2026Q2 earnings
reported 2026-05-27
EPS $0.80 vs $0.79 est — beat
next session +3.1% (close 2026-05-27 → 2026-05-28)
Source
Press release ↗Summary
Records on three axes — revenue of $2.418 billion (up 28%, above the guidance midpoint), operating cash flow of $638.8 million, and a Q2 guide of $2.7 billion at the midpoint (35% growth) — with the GAAP/non-GAAP EPS gap still wide ($0.04 vs $0.80) on acquisition-heavy quarters. The real news was the raise: on exceptional AI bookings, Matt Murphy now expects fiscal 2027 revenue to grow roughly 40% to nearly $11.5 billion with data center up about 50% and interconnect up more than 70%, pulled the $3 billion quarterly-revenue milestone forward to Q3, and reaffirmed the $10 billion-plus fiscal 2029 custom silicon target. COO Chris Koopmans described an AI supply chain persistently constrained since the buildout began, managed through five-year forecasts and prepayments with a small set of key suppliers.
Earnings call
Earnings call webcast ↗Review
From the report
Marvell's Q1 FY2027 (quarter ended May 2, 2026) set records on three axes — revenue of $2.418 billion (up 28% year-on-year, $18.0 million above the guidance midpoint), operating cash flow of $638.8 million, and a Q2 guide of $2.700 billion at the midpoint (35% year-over-year growth) — while management significantly raised its fiscal 2027 and 2028 revenue outlooks on what it called exceptional AI-related bookings. The GAAP/non-GAAP gap remained wide ($0.04 vs $0.80 diluted EPS), partly reflecting acquisition-heavy quarters (Celestial AI and XConn closed in February 2026).
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Revenue beat: Q1 FY2027 net revenue was a record $2.418 billion, $18.0 million above the midpoint of the guidance given on March 5, 2026. show quote
“Net revenue for the first quarter of fiscal 2027 was $2.418 billion, $18.0 million above the mid-point of the Company’s guidance provided on March 5, 2026.”
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Profitability split: GAAP net income was $34.5 million ($0.04 per diluted share) versus non-GAAP net income of $718.0 million ($0.80 per diluted share) — a wide gap driven by acquisition-related and other excluded charges. show quote
“GAAP net income for the first quarter of fiscal 2027 was $34.5 million, or $0.04 per diluted share. Non-GAAP net income for the first quarter of fiscal 2027 was $718.0 million, or $0.80 per diluted share.”
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Cash generation: operating cash flow reached a record $638.8 million in the quarter. show quote
“Cash flow from operations for the first quarter was $638.8 million, a record high.”
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Guidance and trajectory: CEO Matt Murphy framed the quarter as record revenue up 28% year-over-year with Q2 guided to $2.7 billion at the midpoint (35% year-over-year growth), and said growth should accelerate each quarter through fiscal 2027 on data center strength. show quote
“Marvell delivered record first-quarter fiscal 2027 revenue of $2.418 billion, up 28% year-over-year, and guided second-quarter revenue to $2.7 billion at the mid-point, representing 35% year-over-year growth. We expect revenue growth to continue accelerating each quarter throughout fiscal 2027, driven by continued strength in our data center business,”
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Outlook raised: on the back of AI-related bookings, management significantly raised the revenue outlook for both fiscal 2027 and fiscal 2028 versus the prior quarter's guidance, citing demand across optics, Ethernet switching, interconnect, and custom XPU/XPU-attach solutions. show quote
“We are seeing exceptional AI-related bookings, and as a result, we are significantly raising Marvell’s revenue outlook for both fiscal 2027 and fiscal 2028 compared with the guidance we provided last quarter.”
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From the call
On the call, CEO Matthew J. Murphy quantified the raise: fiscal 2027 revenue now expected to grow roughly 40% to nearly $11.5 billion with data center up about 50% and interconnect up more than 70%, quarterly revenue crossing $3 billion by Q3 (a quarter earlier than previously signaled), and the $10 billion-plus fiscal 2029 custom silicon target reaffirmed. COO Christopher Koopmans described an AI supply chain that has been persistently constrained, managed through five-year forecasts and prepayments with a small set of key suppliers.
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CEO Matthew J. Murphy raised the full-year outlook to roughly 40% growth — nearly $11.5 billion of fiscal 2027 revenue — with the data center business now expected to grow about 50% this fiscal year. show quote
“As a result, we now expect overall Marvell revenue fiscal 27 to grow approximately 40% year over year to nearly $11.5 billion The increase in our revenue outlook continues to be driven by our data center which we now expect to grow approximately 50% this fiscal year.”
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Murphy pulled the $3 billion quarterly-revenue milestone forward to Q3: Q2 is guided to double-digit sequential growth and Q3 and Q4 are each expected to grow at least 10% sequentially. show quote
“We are now guiding Q2 revenue to grow double digits sequentially, and we expect Q3 and Q4 revenue to also grow by at least 10% sequentially, as a result, we now expect $3 billion in quarterly revenue in Q3.”
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Murphy reaffirmed the long-term custom silicon target of over $10 billion in revenue in fiscal 2029, and confirmed it again under questioning from Vivek Arya (Bank of America). show quote
“We remain confident in achieving our target model for our custom business to deliver on over $10 billion in revenue in fiscal 29.”
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COO Christopher Koopmans said everything touching AI has been supply-constrained since the buildout began, and that Marvell manages it with tight relationships and 5-year forecasts with a small number of key suppliers (backed, per the call, by prepayments). show quote
“Everything that touches AI has been constrained basically since the beginning of this. And, ultimately, the way we have been able to manage this is by building very tight relationships with a small number of key suppliers giving them a 5 year forecast of what we need and hitting what we need each time along the way and doing what we said we were going to do.”
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as of 2026-08-10