Marvell Tops Q2 Estimates, But Shares Slip Post-Market

Marvell Technology, Inc. (NASDAQ: MRVL) reported record second-quarter fiscal 2027 results after Thursday’s close, beating Wall Street expectations, though shares slipped roughly 1.5% in after-hours trading as investors digested the results against lofty pre-earnings expectations.

The Santa Clara-based chipmaker posted net revenue of $2.739 billion, up 37% year-over-year and above the midpoint of its prior guidance, and ahead of the Yahoo Finance analyst consensus of approximately $2.71 billion. Non-GAAP earnings per diluted share came in at $0.94, edging out the consensus estimate of $0.93, while GAAP diluted EPS was $0.33.

Growth was driven by Marvell’s Data Center segment, which surged 46% year-over-year to $2.17 billion and now accounts for 79% of total revenue, reflecting continued strong demand for AI infrastructure, custom silicon, and networking connectivity products. Communications and other revenue rose a more modest 10% to $567.8 million.

GAAP gross margin was 53.1%, with non-GAAP gross margin at 58.9%. Cash flow from operations totaled $605.5 million for the quarter, and the company ended the period with $3.93 billion in cash and equivalents.

CEO Matt Murphy said AI-related bookings “remain exceptionally robust” and that the company expects growth to accelerate further through the remainder of fiscal 2027, citing strength in Connectivity and an anticipated acceleration in its Custom silicon business in the back half of the year.

For the third quarter, Marvell guided revenue to $3.150 billion (+/-5%), with non-GAAP EPS of $1.10 (+/-$0.05) — both ahead of prior estimates.

Despite the beat, the modest pullback suggests investors may have been pricing in even stronger upside following Nvidia’s blockbuster results earlier in the week. Marvell will host an Investor Day on October 6, 2026, to detail its long-term AI infrastructure strategy.