Marvell Technology beats estimates on AI demand strength

Investing.com -- Marvell Technology Inc (NASDAQ: MRVL) reported first-quarter fiscal 2027 results that exceeded analyst expectations, driven by strong demand for its AI and data center solutions, sending shares up 2.8% in after-hours trading Wednesday.

The semiconductor company posted adjusted earnings per share of $0.80, beating the analyst consensus of $0.79 by $0.01. Revenue reached a record $2.42 billion, surpassing the $2.4 billion estimate and representing a 28% increase YoY from $1.90 billion in the prior-year period. The company also completed acquisitions of Celestial AI on February 2, 2026, and XConn Technologies on February 10, 2026, with results included from their respective acquisition dates.

For the second quarter of fiscal 2027, Marvell issued guidance of $0.88 to $0.98 per share, with a midpoint of $0.93 that exceeds the analyst consensus of $0.90. The company expects second-quarter revenue of $2.7 billion, plus or minus 5%, with the midpoint above the $2.6 billion consensus estimate and representing 35% YoY growth.

"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," said Matt Murphy, Marvell's Chairman and CEO. "We are seeing exceptional AI-related bookings, and as a result, we are significantly raising Marvell's revenue outlook for both fiscal 2027 and fiscal 2028 compared with the guidance we provided last quarter."

Data center revenue, which accounted for 76% of total revenue, grew 27% YoY to $1.83 billion. The company reported GAAP gross margin of 52.1% and adjusted gross margin of 58.9%. Cash flow from operations reached a record $638.8 million.

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