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Marvell Data Center Revenue Rises 46%

Marvell's fiscal Q2 revenue rose 37% to $2.739 billion, led by 46% data center growth, while its fiscal Q3 revenue guidance midpoint reached $3.15 billion.

By All We Need Editorial System

Marvell reported on August 27 that fiscal 2027 second-quarter revenue reached $2.739 billion, up 37% year over year, with data center revenue rising 46%. Its fiscal third-quarter revenue guidance midpoint increased to $3.15 billion. The central change is not the modest upside to pre-earnings expectations, but the way AI data infrastructure demand is continuing to raise Marvell's quarterly revenue baseline without a corresponding rise in guided margins.

Growth Accelerated From the First Quarter

Second-quarter revenue increased about 13% sequentially from the first quarter's $2.418 billion, while year-over-year growth accelerated from 28% to 37%. GAAP EPS was $0.33, non-GAAP EPS was $0.94, and operating cash flow reached $605.5 million. Revenue was $39 million above the midpoint of Marvell's May guidance, while non-GAAP EPS was slightly above the prior $0.93 midpoint, showing that the expansion was not solely a low-base effect.

Data Centers Led, but Margins Remain Constrained

Data center revenue grew 46% year over year, faster than Marvell overall, making AI and data infrastructure the clearest operating driver. For the third quarter, Marvell guided to a non-GAAP gross margin of 57.5% to 58.5%, with the midpoint below the second-quarter actual level. Revenue is therefore accelerating, but product mix, investment requirements or supply costs may still limit simultaneous margin expansion. That is the strongest countercase to an unqualified demand-growth thesis.

The More Important Signal Is the Next Revenue Step

Marvell expects fiscal third-quarter revenue of $3.15 billion, plus or minus 5%, implying roughly 15% sequential growth at the midpoint. It also guided to non-GAAP EPS of $1.10, plus or minus $0.05. TipRanks had cited a Wall Street benchmark of about $2.72 billion in fiscal second-quarter revenue and $0.93 in non-GAAP EPS, only slightly below the actual figures. The more meaningful operating signal is therefore the next-quarter revenue level rather than a one-quarter expectation gap.

What to watch next

The next test is whether fiscal third-quarter revenue approaches the $3.15 billion midpoint, whether data center growth continues to outpace the company overall, and whether non-GAAP gross margin lands within the 57.5% to 58.5% range. Continued revenue acceleration alongside weaker margins would sharpen the divide between demand growth and earnings conversion; improvement in both would support the operating-leverage case.

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