Marvell Technology Q2 Earnings Call Highlights

Marvell reported record fiscal Q2 revenue of $2.739 billion , up 37% year over year, and raised its fiscal 2027 revenue outlook to approximately $12 billion.

The company also lifted its fiscal 2028 outlook to about $18 billion.

Data-center demand remains the primary growth driver , with revenue up 46% year over year to $2.17 billion, or 79% of total sales.

Strong demand spans AI connectivity, switching, optical interconnects and custom silicon.

Marvell expects fiscal Q3 revenue of approximately $3.15 billion, representing more than 50% year-over-year growth at the midpoint, while custom silicon is expected to ramp significantly in the second half of fiscal 2027 and more than double in fiscal 2028.

Marvell Technology NASDAQ: MRVL reported record fiscal second-quarter 2027 revenue of $2.739 billion, up 13% sequentially and 37% from a year earlier, as demand for data-center connectivity and custom silicon products continued to rise.

Chairman and Chief Executive Officer Matt Murphy said revenue and non-GAAP earnings per share of $0.94 both exceeded the midpoint of the company’s guidance.

The company raised its fiscal 2027 revenue outlook to roughly $12 billion, representing approximately 45% year-over-year growth, from a prior projection of about $11.5 billion.

Marvell also raised its fiscal 2028 revenue outlook to approximately $18 billion, up from its prior forecast of $16.5 billion.

The company now expects fiscal 2028 revenue growth of about 50%, with data-center revenue projected to increase by more than 60% year over year.

Data-center revenue reached a record $2.17 billion in the fiscal second quarter, accounting for 79% of Marvell’s total revenue.

The segment grew 18% sequentially and 46% from the prior-year period.

For the fiscal third quarter, Marvell expects data-center revenue to rise more than 20% sequentially and about 75% year over year.

Murphy said the company is seeing broad AI-related demand across interconnect, switching and custom silicon.

He said demand remains strong for 800G optical digital signal processors, while the company’s 1.6T business is ramping and is expected to accelerate further in fiscal 2028.

Marvell’s scale-out switching business is on track to more than double during fiscal 2027, driven by the ramp of 51.2T products across a widening group of customers, according to Murphy.

Demand for broadband analog transimpedance amplifiers and drivers also continues to exceed the company’s expectations.

The company is additionally investing in scale-up networking technologies, which connect increasingly large AI computing domains.

Murphy said customers are initially using copper interconnects in these environments, but limitations in reach and bandwidth are expected to increase adoption of optical interconnects over time.

Marvell said it is pursuing both near-packaged optics, or NPO, and co-packaged optics, or CPO, approaches, supported by silicon photonics, modulation technologies, broadband analog components and switching products.

Murphy said the company’s fiscal 2028 revenue outlook for scale-up optics had increased “meaningfully” from prior expectations, with NPO adoption gaining traction at multiple customers.

Marvell expects its data-center custom business to ramp significantly in the second half of fiscal 2027 and to more than double year over year in fiscal 2028.

The company said growth will come from both XPU products and...