Marvell Technology (MRVL) investor relations material

Executive summary

• Achieved record Q1 FY27 net revenue of $2.418B, up 28% year-over-year, surpassing guidance midpoint, driven by strong AI-related demand in the data center segment and recovery in communications and other end markets.

• Data center segment contributed 76% of total revenue, showing robust demand across interconnect, custom silicon, and switching.

• Completed acquisitions of Celestial AI and XConn Technologies, expanding AI and switching portfolios, with results included from acquisition dates.

• Issued $2B in Series A Convertible Preferred Stock to NVIDIA, establishing a strategic partnership and expanding collaboration in silicon and optical networking.

• Cash flow from operations reached a record $638.8M for the quarter, with cash and cash equivalents rising to $3.84B.

Financial highlights

• Q1 FY27 GAAP gross margin: 52.1%; non-GAAP gross margin: 58.9%.

• Q1 GAAP operating margin: 14%; non-GAAP operating margin: 35.7%.

• Q1 GAAP net income: $34.5M; non-GAAP net income: $718M.

• Q1 GAAP EPS: $0.04; non-GAAP EPS: $0.80, up 29% YoY.

• Cash and cash equivalents at quarter-end: $3.84B, up from $2.64B sequentially.

Outlook and guidance

• Q2 FY27 revenue guidance: $2.7B ±5%, up 12% sequentially and 35% YoY at midpoint.

• Q2 GAAP EPS: $0.32–$0.42; non-GAAP EPS: $0.88–$0.98.

• FY27 non-GAAP operating expense expected at ~$2.45B; FY28 non-GAAP opex to grow mid-to-high teens percent, well below revenue growth.

• Targeting operating margin model of 38–40% by FY28.

• Management expects continued strong demand in AI-related data center products but notes potential volatility due to macroeconomic and geopolitical risks.