Marvell Technology reported record revenue of $2.418 billion for its first quarter of fiscal 2027, up 28% year-over-year, as demand from AI infrastructure customers continued to accelerate across its data center portfolio. The result came in $18 million above the midpoint of Marvell’s prior guidance. Non-GAAP net income reached $718 million, or $0.80 per diluted share, while cash flow from operations hit a company record $638.8 million.
The company pointed to sustained momentum across nearly every layer of AI cluster networking and interconnect. Marvell said customer demand is strengthening for 800G and 1.6T optical modules, 51.2T Ethernet switch silicon, optical technologies supporting near-packaged optics (NPO) and co-packaged optics (CPO), data center interconnect platforms, and its custom XPU and XPU-attach programs. The breadth of that list underscores Marvell’s increasingly central role in both scale-out Ethernet fabrics and emerging scale-up optical interconnect architectures inside AI infrastructure.
Marvell also raised expectations for the remainder of the year. For the second quarter of fiscal 2027, the company expects revenue of $2.7 billion ±5%, which would represent roughly 35% year-over-year growth at the midpoint. CEO Matt Murphy said the company is seeing “exceptional AI-related bookings” and significantly increased its revenue outlook for both fiscal 2027 and fiscal 2028. Results also include the first quarter contribution from the recently completed acquisitions of Celestial AI and XConn Technologies, both of which strengthen Marvell’s position in AI system connectivity.
- Q1 FY27 revenue: $2.418 billion (record)
- Year-over-year growth: +28%
- Q1 GAAP EPS: $0.04
- Q1 non-GAAP EPS: $0.80
- Operating cash flow: $638.8 million (record)
- Q2 FY27 revenue outlook: $2.7 billion ±5%
- Q2 non-GAAP EPS outlook: $0.93 ± $0.05
“Marvell delivered record first-quarter fiscal 2027 revenue of $2.418 billion, up 28% year-over-year, and guided second-quarter revenue to $2.7 billion at the mid-point, representing 35% year-over-year growth. We expect revenue growth to continue accelerating each quarter throughout fiscal 2027, driven by continued strength in our data center business,” said Matt Murphy, Chairman and CEO of Marvell Technology.
Investor call addendum — incremental points from management Q&A and prepared remarks:
- Marvell now expects fiscal 2027 revenue to reach nearly $11.5 billion, with fiscal 2028 revenue projected at about $16.5 billion.
- Management said data center revenue should grow about 50% in fiscal 2027 and about 55% in fiscal 2028.
- Interconnect is now expected to grow more than 70% year-over-year in fiscal 2027, above the prior 50% expectation.
- Marvell expects its DCI module business to reach a $1 billion annualized revenue run rate during fiscal 2028, roughly double fiscal 2026 levels.
- Management described “scale-across” networking as a new growth driver, with AI clusters spanning multiple data centers because of power and space constraints.
- Marvell said scale-across architectures could require more than 10x the aggregate bandwidth of current front-end DCI networks.
- The company expects scale-up optics revenue in fiscal 2028 to more than double its prior outlook of roughly $150 million.
- Marvell highlighted its third-generation 6.4T light engine for NPO and CPO deployments, with engagements at multiple Tier 1 customers.
- Celestial AI’s photonic fabric technology was selected by a Tier 1 hyperscaler for next-generation XPU scale-up networks.
- The Polariton acquisition adds plasmonic silicon photonics technology, including modulators with demonstrated bandwidth above 1 THz, aimed at 3.2T and beyond.
- Scale-out switch revenue is expected to exceed $600 million in fiscal 2027 and track toward more than $1 billion annualized revenue in fiscal 2028.
- Management said scale-up switching remains largely upside to current forecasts, with Marvell pursuing UALink, eSUN, and NVLink Fusion opportunities.
- Marvell said each major scale-up switch engagement could represent a multibillion-dollar lifetime revenue opportunity.
- The company cited design wins for its active electrical cable “golden cable” program with three Tier 1 U.S. hyperscalers.
- Retimers and AECs are expected to more than double year-over-year in fiscal 2027 and continue growing rapidly in fiscal 2028.
- XConn adds PCIe and CXL switching capabilities, including PCIe Gen 6 and CXL 3.1 solutions.
- Custom silicon revenue remains on track to grow more than 20% in fiscal 2027 and more than double in fiscal 2028.
- Marvell reaffirmed its long-term custom silicon target of more than $10 billion in fiscal 2029 revenue.
- Management said fiscal 2028 custom growth should come in roughly equal thirds from existing programs, XPU-attach programs, and a new Tier 1 XPU program.
- Marvell said more than 10 XPU-attach programs are moving toward higher production volumes, especially around NIC and CXL memory-attach use cases.
- Management pointed to Agentic AI as a demand driver because multi-step agent workflows increase cluster traffic, memory requirements, CPU deployment, NIC demand, PCIe switching, and retimer usage.
- Marvell plans about $1 billion in supplier prepayments during fiscal 2027 to secure capacity for AI-related demand.
- Non-GAAP operating expense is expected to grow in the mid-to-high teens percentage range in fiscal 2028, well below the company’s projected 45% revenue growth rate.
- Management expects to reach the upper end of its 38%–40% target operating margin model during fiscal 2028.
