OpenNashEarnings

Marvell (MRVL) · Semiconductors

Marvell Q1 FY2027 earnings: summary, key numbers & outlook

Results filed 27 May 2026 · Quarter ended 2 May 2026

Press release ↗Investor relations ↗

Summaries and transcripts are machine-generated and can contain errors.

In brief

Marvell reported record Q1 fiscal 2027 net revenue of $2.418 billion, up 28% year-on-year, with $0.04 GAAP and $0.80 non-GAAP diluted income per share.

Marvell posted record first-quarter revenue of $2.418 billion, up 28% from a year ago and $18.0 million above the midpoint of its guidance. Data center sales, about three-quarters of the total, grew 27% to $1,832.7 million. Non-GAAP profit was $718.0 million, or $0.80 per share. GAAP profit was only $34.5 million, because of a $331.8 million non-cash charge for contingent consideration and costs from the Celestial AI and XConn acquisitions. Operating cash flow was a record $638.8 million.

Management guided second-quarter revenue to $2.700 billion, plus or minus 5%, about 35% above last year. It said growth should keep accelerating each quarter this fiscal year and that it is significantly raising its fiscal 2027 and 2028 revenue outlook. The main risks are heavy dependence on a few large data center customers, the chance that customers build their own chips, and a non-GAAP gross margin that slipped to 58.9% from 59.8% a year ago.

Key numbers

Net revenue
$2.418 billion

grew by 28% year-on-year

GAAP net income · GAAP
$34.5 million

Non-GAAP net income · non-GAAP
$718.0 million

GAAP diluted income per share · GAAP
$0.04

Non-GAAP diluted income per share · non-GAAP
$0.80

GAAP gross margin · GAAP
52.1%

Non-GAAP gross margin · non-GAAP
58.9%

GAAP operating income · GAAP
$339.4M

Segment or metricValueChange
Data center revenue$1.8B27% year over year
Communications and other revenue$585.1M29% year over year
Where each number comes from
  • Net revenue: “Net revenue for the first quarter of fiscal 2027 was $2.418 billion, $18.0 million above the mid-point of the Company’s guidance provided on March 5, 2026.”
  • GAAP net income: “GAAP net income for the first quarter of fiscal 2027 was $34.5 million, or $0.04 per diluted share.”
  • Non-GAAP net income: “Non-GAAP net income for the first quarter of fiscal 2027 was $718.0 million, or $0.80 per diluted share.”
  • GAAP diluted income per share: “GAAP net income for the first quarter of fiscal 2027 was $34.5 million, or $0.04 per diluted share.”
  • Non-GAAP diluted income per share: “Non-GAAP net income for the first quarter of fiscal 2027 was $718.0 million, or $0.80 per diluted share.”
  • GAAP gross margin: “Q1 Gross Margin: 52.1% GAAP gross margin; 58.9% non-GAAP gross margin”
  • Non-GAAP gross margin: “Q1 Gross Margin: 52.1% GAAP gross margin; 58.9% non-GAAP gross margin”
  • GAAP operating income: “Total operating expenses | 921.4 | 743.5 | 681.8 Operating income | 339.4 | 404.4 | 270.6 Interest expense | (52.8) | (50.8) | (48.7)”
  • Data center revenue: “Data center | $1,832.7 | $1,651.3 | $1,440.6 | 27% | 11% Communications and other | 585.1 | 567.4 | 454.7 | 29% | 3%”
  • Communications and other revenue: “Data center | $1,832.7 | $1,651.3 | $1,440.6 | 27% | 11% Communications and other | 585.1 | 567.4 | 454.7 | 29% | 3%”

Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.

From the filingQ1 FY2027vs year agovs last quarter
Revenue$2.4B+27.6%+9.0%
Operating income$339.4M+25.4%−16.1%
Net income$34.5M−80.6%−91.3%
Diluted EPS$0.04−80.0%—
Free cash flow$483.1M+125.6%+86.2%
Gross margin52.1%+1.8 pts+0.4 pts
Operating margin14.0%−0.3 pts−4.2 pts

Calculated by code from XBRL, not by the model.

Outlook

MetricPeriodOutlook
Net revenuesecond quarter of fiscal 2027$2.700 billion +/- 5%
GAAP gross marginsecond quarter of fiscal 202752.1% to 53.1%
Non-GAAP gross marginsecond quarter of fiscal 202758.25% to 59.25%
GAAP operating expensessecond quarter of fiscal 2027approximately $960 million
Non-GAAP operating expensessecond quarter of fiscal 2027approximately $600 million
GAAP diluted net income per sharesecond quarter of fiscal 2027$0.37 +/- $0.05 per share
Non-GAAP diluted net income per sharesecond quarter of fiscal 2027$0.93 +/- $0.05 per share

Key takeaways

  1. Record revenue driven by data center

    Net revenue was $2.418 billion, up 28% year over year. Data center revenue was $1,832.7 million, 76% of the total.

  2. GAAP profit crushed by non-cash charges

    GAAP net income was $34.5 million against non-GAAP net income of $718.0 million. The cash flow statement shows a $331.8 million change in fair value of contingent consideration liability, partly offset by an $81.1 million gain on the forward stock purchase contract.

  3. Management expects accelerating growth

    Second-quarter revenue is guided to $2.700 billion +/- 5%, representing 35% year-over-year growth. Management is significantly raising its fiscal 2027 and fiscal 2028 revenue outlook.

  4. Non-GAAP gross margin edged lower

    Non-GAAP gross margin was 58.9%, versus 59.0% in the prior quarter and 59.8% a year earlier. Second-quarter non-GAAP gross margin is guided to 58.25% to 59.25%.

  5. Acquisitions and financing reshaped the balance sheet

    Marvell paid $1,270.9 million for acquisitions (net of cash acquired) and received $2,000.0 million from issuing preferred stock. Cash rose to $3,843.6 million and goodwill to $13,883.5 million.

Charts

Revenue$2.4B+27.6% y/yQ1 FY27
Q3 FY25: $1.5BQ3 25$1.5BQ4 FY25: $1.8B (worked out from the annual figure)Q4 25$1.8BQ1 FY26: $1.9BQ1 26$1.9BQ2 FY26: $2.0BQ2 26$2.0BQ3 FY26: $2.1BQ3 26$2.1BQ4 FY26: $2.2B (worked out from the annual figure)Q4 26$2.2BQ1 FY27: $2.4BQ1 27$2.4BQ2 FY27: $2.7BQ2 27$2.7B

Fourth quarter worked out from the annual figure.

Data
Q3 FY25$1.5B
Q4 FY25$1.8B *
Q1 FY26$1.9B
Q2 FY26$2.0B
Q3 FY26$2.1B
Q4 FY26$2.2B *
Q1 FY27$2.4B
Q2 FY27$2.7B
Diluted EPS (GAAP)$0.04−80.0% y/yQ1 FY27
Q3 FY25: -$0.78Q3 25-$0.78Q1 FY26: $0.20Q1 26$0.20Q2 FY26: $0.22Q2 26$0.22Q3 FY26: $2.20Q3 26$2.20Q1 FY27: $0.04Q1 27$0.04Q2 FY27: $0.33Q2 27$0.33
Data
Q3 FY25-$0.78
Q1 FY26$0.20
Q2 FY26$0.22
Q3 FY26$2.20
Q1 FY27$0.04
Q2 FY27$0.33

Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.

Operating margin14.0%−0.3 pts y/yQ1 FY27
Q3 FY25: -46.4%Q3 25-46.4%Q4 FY25: 12.9%Q4 2512.9%Q1 FY26: 14.3%Q1 2614.3%Q2 FY26: 14.5%Q2 2614.5%Q3 FY26: 17.2%Q3 2617.2%Q4 FY26: 18.2%Q4 2618.2%Q1 FY27: 14.0%Q1 2714.0%Q2 FY27: 16.8%Q2 2716.8%
Data
Q3 FY25-46.4%
Q4 FY2512.9%
Q1 FY2614.3%
Q2 FY2614.5%
Q3 FY2617.2%
Q4 FY2618.2%
Q1 FY2714.0%
Q2 FY2716.8%
Free cash flow$483.1M+125.6% y/yQ1 FY27
Q3 FY25: $461.3MQ3 25$461.3MQ4 FY25: $444.1MQ4 25$444.1MQ1 FY26: $214.1MQ1 26$214.1MQ2 FY26: $414.1MQ2 26$414.1MQ3 FY26: $508.8MQ3 26$508.8MQ4 FY26: $259.4MQ4 26$259.4MQ1 FY27: $483.1MQ1 27$483.1MQ2 FY27: $478.8MQ2 27$478.8M
Data
Q3 FY25$461.3M
Q4 FY25$444.1M
Q1 FY26$214.1M
Q2 FY26$414.1M
Q3 FY26$508.8M
Q4 FY26$259.4M
Q1 FY27$483.1M
Q2 FY27$478.8M

Operating cash flow minus capital expenditure, from cash flow statements.

Questions

What were Marvell's first-quarter fiscal 2027 results?

Net revenue was a record $2.418 billion, up 28% year over year. GAAP diluted income per share was $0.04 and non-GAAP was $0.80.

What is Marvell guiding for the second quarter of fiscal 2027?

Revenue of $2.700 billion +/- 5%, non-GAAP gross margin of 58.25% to 59.25%, and non-GAAP diluted EPS of $0.93 +/- $0.05. Management said revenue growth should keep accelerating each quarter through fiscal 2027.

Why is Marvell's GAAP income so much lower than non-GAAP income?

GAAP net income was $34.5 million versus $718.0 million non-GAAP. The gap reflects stock-based compensation of $207.6 million, amortization of acquired intangibles of $225.2 million and a $250.7 million fair-value charge on the contingent consideration liability, net of the forward stock purchase contract.

How did the data center business perform?

Data center revenue was $1,832.7 million, up 27% year over year and 11% from the prior quarter, and made up 76% of total revenue. Communications and other grew 29% year over year to $585.1 million.

How strong was Marvell's cash generation?

Cash flow from operations was a record $638.8 million, versus $332.9 million a year earlier. Cash and equivalents ended the quarter at $3,843.6 million.

Documents

SEC filing