Marvell Technology reported record fiscal second-quarter 2027 revenue as continued demand for artificial intelligence infrastructure accelerated growth across its Data Center business and supported another increase in the company’s financial outlook.
Net revenue reached a record $2.739 billion, increasing 37% year-over-year.
The quarterly result was also approximately $39 million above the midpoint of Marvell’s previous guidance.
Data Center was the principal growth engine, with revenue from the business increasing 46% year-over-year.
Management attributed the acceleration to continued broad-based demand across Marvell’s connectivity and custom silicon portfolio.
The Data Center performance is increasingly important to Marvell’s overall growth profile as hyperscalers and other large technology companies build increasingly complex infrastructure for AI training and inference.
AI systems require not only compute processors, but also networking, connectivity, storage and custom silicon capable of moving enormous amounts of data between chips, racks and data centers.
Marvell’s portfolio gives the company exposure to several of those infrastructure layers.
The rapid growth translated into significant operating leverage.
GAAP operating income increased to $459.7 million from $290.1 million in the prior-year quarter, representing growth of approximately 58%.
That means operating income increased substantially faster than the company’s 37% revenue growth.
Gross profit also rose sharply to $1.456 billion from $1.011 billion.
GAAP net income reached $308 million, or $0.33 per diluted share.
On a non-GAAP basis, net income was $865.9 million, or $0.94 per diluted share.
Cash flow from operations reached $605.5 million.
The forward outlook suggests that Marvell expects the AI-driven growth cycle to continue accelerating.
For the fiscal third quarter, the company projects approximately $3.15 billion of revenue, plus or minus 5%.
At the midpoint, the outlook would represent roughly 15% sequential growth from the record $2.739 billion reported in Q2.
Non-GAAP diluted EPS is projected at $1.10, plus or minus $0.05.
Management also raised its revenue expectations for both fiscal 2027 and fiscal 2028.
The longer-range increases are significant because they indicate that Marvell views the current AI demand environment as more than a one-quarter increase in hardware spending.
AI-related bookings remain exceptionally strong, and management expects Marvell’s Custom business to accelerate significantly during the second half of fiscal 2027.
Custom silicon represents an important component of the broader AI infrastructure market as hyperscalers increasingly design purpose-built processors and other chips optimized for their own workloads.
Marvell’s role in helping customers develop and deploy custom solutions can create longer-duration relationships while expanding its exposure to AI infrastructure investment.
The strongest aspect of the quarter is therefore the combination of current growth and forward acceleration.
Data Center revenue grew 46%, overall revenue reached a record $2.74 billion, operating income increased 58%, and the next-quarter revenue midpoint implies another substantial sequential step higher.
Those trends indicate that Marvell is converting expanding AI infrastructure demand into both top-line growth and improving earnings leverage.
KEY QUOTES:
“Marvell delivered record second-quarter fiscal 2027 revenue of $2.739 billion, up 37% year over year, driven by continued strong demand across our Data Center portfolio, where revenue growth accelerated to 46% year over year.”
“AI-related bookings remain exceptionally robust, and we expect our revenue growth to accelerate further through the remainder of fiscal 2027.”
Matt Murphy, Chairman and Chief Executive Officer of Marvell Technology
