# Marvell (MRVL) Q1 FY2027 earnings

Results filed 2026-05-27 for the quarter ended 2026-05-02. Source page: https://earnings.opennash.com/companies/mrvl/2027-q1/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1835632/000183563226000014/0001835632-26-000014-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Net revenue | $2.418 billion | grew by 28% year-on-year |  |
| GAAP net income | $34.5 million |  | GAAP |
| Non-GAAP net income | $718.0 million |  | non-GAAP |
| GAAP diluted income per share | $0.04 |  | GAAP |
| Non-GAAP diluted income per share | $0.80 |  | non-GAAP |
| GAAP gross margin | 52.1% |  | GAAP |
| Non-GAAP gross margin | 58.9% |  | non-GAAP |
| GAAP operating income (in millions) | 339.4 |  | GAAP |
| Non-GAAP operating income (in millions) | 846.9 |  | non-GAAP |
| GAAP operating margin | 14.0% |  | GAAP |
| Non-GAAP operating margin | 35.0% |  | non-GAAP |
| Cash flow from operations | $638.8 million |  |  |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Data center revenue (in millions) | $1,832.7 | 27% year over year |
| Communications and other revenue (in millions) | 585.1 | 29% year over year |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Net revenue | second quarter of fiscal 2027 | $2.700 billion +/- 5% |
| GAAP gross margin | second quarter of fiscal 2027 | 52.1% to 53.1% |
| Non-GAAP gross margin | second quarter of fiscal 2027 | 58.25% to 59.25% |
| GAAP operating expenses | second quarter of fiscal 2027 | approximately $960 million |
| Non-GAAP operating expenses | second quarter of fiscal 2027 | approximately $600 million |
| GAAP diluted net income per share | second quarter of fiscal 2027 | $0.37 +/- $0.05 per share |
| Non-GAAP diluted net income per share | second 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.

## 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.