Marvell Technology Q2 2027 earnings: record revenue as AI chip demand drives raised guidance
Marvell posted record quarterly revenue on booming AI data-center chip demand and raised its full-year sales forecast for a second straight quarter.
| Q2 2027 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $0.94 | $0.94 | -0.3% |
| Revenue | $2.74B | $2.77B | -1.0% |
Key takeaways
- Marvell’s results were essentially in line with what Wall Street had penciled in, with revenue landing just shy of analyst estimates even as the company posted its highest quarterly sales ever.
- The star of the quarter was Marvell’s data center business — the chips that power AI and cloud computing servers — which grew 46% from a year earlier and now makes up about 79% of everything Marvell sells, up from a smaller share previously.
- Management raised its sales forecast for the current quarter to around $3.15 billion and lifted its outlook for the full fiscal year to roughly $12 billion, about 45% growth, marking the second straight quarter the company has raised its annual guidance.
- Marvell expanded its custom chip partnership with Google, including a warrant that could hand Google up to 7% of Marvell’s shares as revenue milestones are hit — a structure that ties the two companies together for years and signals confidence in sustained AI chip demand.
- Profitability metrics over the past year show a business that keeps more of each sales dollar as profit than it used to: gross margin (money left after production costs) stood at about 51.5%, and operating margin (profit after running the business) at roughly 36.6%, both consistent with a shift toward higher-value AI and custom chip products.
- Net profit margin was about 29% over the trailing year, and return on equity — a measure of how efficiently the company turns shareholders’ investment into profit — was around 16.8%, both pointing to solid underlying profitability even as Marvell keeps investing heavily in new AI chip programs.
- Looking further out, Marvell said it now expects roughly $18 billion in revenue for the following fiscal year (about 50% growth), driven by broadening demand across networking, interconnect, and custom AI chip products for large cloud customers.
Q2 2027 in context
| Metric | Aug 2026 | Aug 2025 | Change |
|---|---|---|---|
| Revenue | $2.7B | $2.0B | +36.5% |
| Net income | $308M | $195M | +58.1% |
| Free cash flow | $479M | $414M | +15.6% |
| Diluted EPS | $0.33 | $0.22 | +50.0% |
| Gross margin | 53.1% | 50.4% | +2.8 pts |
| Operating margin | 16.8% | 14.5% | +2.3 pts |
| Net margin | 11.2% | 9.7% | +1.5 pts |
Figures for the quarter ended Aug 2026 and the quarter ended Aug 2025, as reported to the SEC.
How the stock took it
Marvell Technology Inc closed at $245.11 on Aug 26, 2026, the last session before the report, and at $216.62 on Aug 28, 2026, the first session after it — -11.6% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 51.5% | Trailing 12 months |
| Operating margin | 36.6% | Trailing 12 months |
| Net profit margin | 29.0% | Trailing 12 months |
| Pretax margin | 33.4% | Trailing 12 months |
| EPS | $2.92 | Trailing 12 months |
| Revenue growth (YoY) | 34.1% | Trailing 12 months |
| EPS growth (YoY) | -81.0% | Latest quarter |
| Return on equity | 16.8% | Trailing 12 months |
Sources: company report · earnings call · qz.com · 247wallst.com