Marvell Technology, Inc. (MRVL) Earnings

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Jul 2026upcoming

Next quarter

Reports Aug 27, 2026, after the close.

Consensus is $0.65 EPS for Jul 2026 across 8 estimates, ranging $0.64 to $0.68.

MRVL Apr 2026

Reported May 27, 2026

: 3.28%
: +3.09%

: $0.61
: $0.59
: —
: $2.42B

Reported results

: $2.42B; from $1.90B
: $339.40M; from $270.60M
: $34.50M; from $177.90M
: $0.04; from $0.20

Highlights

Record revenue: Q1 FY27 revenue was $2.418 billion, up 28% year over year and 9% sequentially, $18 million above the midpoint of guidance.
AI demand: Data-center revenue increased 27% year over year to $1.833 billion and represented 76% of sales, driven by AI-related demand across optics, switching, storage and custom silicon.
Raised outlook: Q2 revenue is guided to $2.7 billion plus or minus 5%, implying 35% year-over-year growth at the midpoint; management said it materially raised its FY27 and FY28 revenue outlooks.
Earnings comparison: Supplied consensus EPS was $0.61 versus reported EPS of $0.59, a 3.28% miss; Marvell separately reported $0.80 of non-GAAP diluted EPS and $0.04 of GAAP diluted EPS.
Cash generation: Operating cash flow reached a record $638.8 million, up from $332.9 million a year earlier, despite GAAP net income falling to $34.5 million from $177.9 million.
Acquisition-heavy quarter: Marvell completed the $3.5 billion Celestial AI acquisition and the $469 million XConn acquisition; the two businesses contributed immaterial revenue during the quarter.
NVIDIA financing and dilution: NVIDIA invested $2.0 billion for Series A convertible preferred stock, initially convertible into as many as 21.8 million common shares at approximately $91.84 per share.
Accounting volatility: Celestial contingent consideration was revalued upward by $331.8 million, contributing to a $256.1 million GAAP interest and other loss and weighing heavily on reported earnings.
Margin and spending: GAAP gross margin improved to 52.1% from 50.3% a year earlier, while GAAP operating expenses rose 35% to $921.4 million as Marvell expanded R&D and absorbed acquisition costs.

Analysis

Marvell’s first quarter of fiscal 2027 was primarily a record-growth and outlook-reset quarter, even though the supplied EPS comparison was disappointing: reported EPS of $0.59 trailed the $0.61 consensus by 3.28%. Revenue reached a record $2.418 billion, up 28% from $1.895 billion a year earlier and 9% from $2.219 billion in the prior quarter. The company also delivered $0.80 of non-GAAP diluted EPS, versus $0.62 a year earlier and $0.80 in the prior quarter, while GAAP diluted EPS was $0.04 compared with $0.20 a year earlier and $0.46 in the prior quarter.

The defining feature was accelerating AI infrastructure demand. Data-center revenue rose 27% year over year to $1.833 billion, and management guided to $2.7 billion of second-quarter revenue, or 35% year-over-year growth at the midpoint. Marvell said it significantly raised its FY27 and FY28 revenue outlooks, citing bookings across optical interconnect, Ethernet switching and custom XPU solutions. The quarter also marked a major strategic expansion: Celestial AI and XConn closed in February, while NVIDIA provided $2.0 billion of preferred-stock funding. Those moves increased strategic breadth but also added dilution, acquisition costs and substantial accounting volatility.

AI demand and outlook

Data center: Revenue rose 27% year over year to $1.833 billion and 11% sequentially, accounting for 76% of total revenue. Management attributed the growth to AI-related demand for electro-optics, custom silicon, storage and switching.
Product breadth: Management highlighted 800G and 1.6T scale-out optics, 51.2T Ethernet switches, scale-up optical solutions for NPO and CPO applications, data-center interconnect modules, and custom XPU and XPU-attach products.
Second quarter: Revenue is guided to $2.7 billion plus or minus 5%, with non-GAAP gross margin of 58.25% to 59.25% and non-GAAP diluted EPS of $0.93 plus or minus $0.05. The midpoint would represent 35% year-over-year growth.
Longer-term reset: CEO Matt Murphy said exceptional AI-related bookings led Marvell to significantly raise its revenue outlook for both fiscal 2027 and fiscal 2028, with growth expected to accelerate each quarter through FY27.

Celestial and XConn

Celestial AI: Marvell closed the acquisition on February 2 for total consideration of $3.537 billion, including $1.280 billion of cash, $1.929 billion of common stock and $315.8 million of contingent consideration. Celestial’s quarterly revenue and earnings contribution was immaterial.
XConn: The February 10 acquisition cost $469 million, including $272.1 million of cash and $168.9 million of common stock. XConn adds PCIe and CXL switching silicon and strengthens Marvell’s UALink scale-up switching capabilities; its quarterly contribution was also immaterial.
Balance-sheet effect: Goodwill increased by approximately $2.8 billion during the quarter to $13.9 billion, while acquired intangible assets rose to $2.6 billion from $1.8 billion at January 31.
Earnout exposure: Celestial contingent consideration rose to a $647.6 million fair-value liability after a $331.8 million non-cash remeasurement. The arrangement could ultimately require approximately $233 million of cash and as many as 22.4 million common shares.

NVIDIA strategic investment

Marvell issued 2.0 million shares of Series A Convertible Preferred Stock to NVIDIA on March 31 for $2.0 billion in cash. The preferred stock is initially convertible into approximately 21.8 million common shares at a conversion price of about $91.84 per share, subject to regulatory requirements, and participates in dividends on an as-converted basis. The transaction supports Marvell’s partnership with NVIDIA around custom XPUs and scale-up networking for AI infrastructure, while adding potential dilution and a new strategic shareholder. The preferred stock was included in diluted share calculations, contributing to a quarter-average diluted share count of 893.3 million versus 875.6 million a year earlier.

Revenue, margins and costs

Revenue mix: Communications and other revenue increased 29% year over year to $585.1 million and 3% sequentially, reflecting recovery as customer inventories normalized. Data center remained the dominant market at 76% of sales.
Gross margin: GAAP gross margin improved 180 basis points year over year to 52.1%, primarily from better cost absorption at higher volumes, partly offset by product mix. Non-GAAP gross margin was 58.9%, down from 59.8% a year earlier.
Operating expenses: GAAP operating expenses increased 35% year over year to $921.4 million. R&D rose 28% to $652.3 million, while SG&A rose 39% to $258.4 million, reflecting higher headcount and acquisition-related costs.
Profitability: GAAP operating income rose to $339.4 million from $270.6 million a year earlier, but operating margin slipped to 14.0% from 14.3%. Non-GAAP operating income increased to $846.9 million from $647.3 million, with a 35.0% margin.

Cash, debt and capital return

Operating cash flow: Cash flow from operations was a record $638.8 million, compared with $332.9 million a year earlier. The increase benefited from non-cash acquisition and compensation items and a $314.9 million reduction in accounts receivable.
Liquidity: Cash and cash equivalents rose to $3.844 billion from $2.639 billion at January 31, aided by the NVIDIA preferred-stock issuance and new borrowings. Marvell had $5.0 billion of senior-note borrowings outstanding and an undrawn $1.5 billion revolving facility.
Capacity commitments: After quarter end, Marvell committed to $870 million of deposits to secure wafer and substrate capacity through fiscal 2030 and 2033, payable from Q2 FY27 through Q2 FY28.
Shareholder returns: Marvell repurchased $200 million of common stock and paid $53.8 million in dividends during the quarter, returning $253.8 million in total. A further $200 million of repurchases occurred through May 26.

Marvell Technology, Inc.

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