Marvell Technology (MRVL) Q1 2027 earnings summary

Executive summary

• Achieved record Q1 FY27 revenue of $2.418B, up 28% year-over-year and 9% sequentially, surpassing guidance midpoint, driven by strong data center demand and AI-related growth.

• Data center segment contributed 76% of total revenue, reaching $1.83B, up 27% year-over-year and 11% sequentially; communications and other revenue was $585M, up 29% year-over-year and 3% sequentially.

• Raised FY27 revenue outlook to nearly $11.5B (up ~40% YoY) and FY28 to $16.5B (up ~45% YoY), both above prior guidance.

• Completed acquisitions of Celestial AI and XConn Technologies, and acquired Polariton, expanding AI, photonics, and switching portfolios.

• Announced expanded partnership with NVIDIA, including $2B Series A Convertible Preferred Stock issuance and integration of custom silicon and optical networking.

Financial highlights

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

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

• Q1 GAAP EPS: $0.04 (impacted by acquisition costs); non-GAAP EPS: $0.80, up 29% YoY.

• Q1 operating cash flow: $638.8M, nearly double year-over-year; cash and cash equivalents rose to $3.84B.

• Total debt: $4.96B; gross debt/EBITDA: 1.44x; net debt/EBITDA: 0.32x.

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.

• Revenue growth expected to accelerate each quarter in FY27, driven by data center and AI demand.