Latest quarter
Marvell reported Q2 FY2027 revenue of $2.7 billion, up 36.5% from Q2 FY2026, and diluted EPS of $0.33, up 50.0%. The consensus comparison recorded adjusted EPS of $0.94 against a $0.93 consensus, with adjusted EPS against consensus listed at 1.08%. Revenue as the consensus counts it was $2.7 billion against consensus revenue of $2.7 billion, while revenue against consensus was listed at 1.03%.
The filing attributed the revenue increase to 46% growth in data-center sales and 10% growth in communications and other sales. It said AI-related demand supported electro-optics, custom, storage and switching products, while communications demand recovered as customer inventory levels normalized. The filing said lower automotive ethernet sales, following the prior-year divestiture of that business, partly offset those increases.
Gross margin was 53.1%, compared with 50.4% a year earlier, while operating margin was 16.8%, compared with 14.5%. The filing attributed the gross-margin increase to better cost absorption from higher revenue and product mix. Free cash flow was $474.3 million, up 14.5% from Q2 FY2026.
| Q2 FY2027 | Q2 FY2026 | Change | |
|---|---|---|---|
| Revenue | $2.7 billion | $2.0 billion | 36.5% |
| Diluted EPS | $0.33 | $0.22 | 50.0% |
| Gross margin | 53.1% | 50.4% | 2.8 percentage points |
| Operating margin | 16.8% | 14.5% | 2.3 percentage points |
| Free cash flow | $474.3 million | $414.4 million | 14.5% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.94 | $0.93 | Beat by 1.08% |
| Revenue | $2.7 billion | $2.7 billion | Beat by 1.03% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
No earnings call was available for this page. Marvell’s filing said data-center revenue benefited from AI-related demand and that communications and other revenue continued to recover as customer inventory levels normalized.
Guidance
Marvell expects Q3 FY2027 revenue of $3.2 billion, plus or minus 5%. The company expects GAAP diluted EPS of $0.53, plus or minus $0.05, and non-GAAP diluted EPS of $1.10, plus or minus $0.05. Marvell expects GAAP gross margin of 52.9% to 53.9% and non-GAAP gross margin of 57.5% to 58.5%. The company also said it expects revenue growth to accelerate further through the remainder of FY2027.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| EPS, non-GAAP | Q3 FY2027 | $1.10, +/- $0.05 per share | — | New |
| EPS, GAAP | Q3 FY2027 | $0.53, +/- $0.05 per share | — | New |
| Units, Diluted Weighted Average Shares Outstanding | Q3 FY2027 | 921,000,000 | — | — |
| Units, Basic Weighted Average Shares Outstanding | Q3 FY2027 | 900,000,000 | — | — |
| Operating expenses, non-GAAP | Q3 FY2027 | $655.0 million | — | New |
| Operating expenses, GAAP | Q3 FY2027 | $1.0 billion | — | New |
| Gross margin, non-GAAP | Q3 FY2027 | 57.5%–58.5% | — | New |
| Gross margin, GAAP | Q3 FY2027 | 52.9%–53.9% | — | New |
| Revenue | Q3 FY2027 | $3.2 billion, +/- 5% | — | New |
| Revenue | FY2027 | Marvell expects revenue growth to accelerate further through the remainder of fiscal 2027. | — | — |