Marvell Technology (MRVL) investor relations material

Executive summary

• Achieved record Q2 FY27 revenue of $2.739B, up 37% year-over-year and 13% sequentially, driven by strong data center demand and surpassing guidance midpoint by $39M.

• Data center revenue reached $2.172B, up 46% year-over-year and 18% sequentially, now representing 79% of total revenue; communications and other revenue was $568M, up 10% year-over-year but down 3% sequentially.

• Raised FY27 revenue outlook to ~$12B (45% YoY growth), up $500M from prior guidance, and FY28 outlook to ~$18B (50% YoY growth), up $1.5B from prior guidance.

• Announced expanded commercial agreement and warrant with a major hyperscaler for custom silicon programs, including TPU ecosystem attach, validating custom silicon leadership and future growth potential.

• Completed acquisitions of Celestial AI ($3.5B) and XConn Technologies ($469M), expanding AI and switching portfolios.

Financial highlights

• Q2 FY27 non-GAAP EPS was $0.94, up 40% year-over-year; GAAP EPS was $0.33; non-GAAP gross margin was 58.9%, GAAP gross margin 53.1%.

• Q2 GAAP operating margin: 16.8%; non-GAAP operating margin: 36.6%, up 180bps YoY and 160bps QoQ.

• Cash flow from operations: $606M; cash and cash equivalents at quarter-end: $3.93B; inventories: $1.36B.

• Returned $254M to shareholders in Q2 FY27 ($200M buybacks, $54M dividends); $400M in stock repurchases YTD.

• Total debt: $4.96B; gross debt/EBITDA: 1.32x; net debt/EBITDA: 0.27x.

Outlook and guidance

• Q3 FY27 revenue guidance: $3.15B (+15% QoQ, +50% YoY), GAAP gross margin 52.9%-53.9%, non-GAAP gross margin 57.5%-58.5%.

• Q3 non-GAAP EPS: $1.05-$1.15; GAAP EPS: $0.48-$0.58.

• FY27 non-GAAP operating expenses expected at ~$2.55B; FY28 non-GAAP opex to grow at half the rate of revenue.

• Non-GAAP operating margin expected to reach 38%-40% target range in Q4 FY27 and upper end in FY28.

• Management expects continued strong demand in the data center market, driven by AI infrastructure investments.