Marvell Technology First-Quarter Revenue Rises 28% Year-on-Year; After-Hours Stock Price Jumps Over 10% to Hit Record High

Tradingkey - On May 27, Eastern Time, Marvell Technology ( MRVL) released its first-quarter financial results for fiscal year 2027 during post-market trading, delivering revenue that exceeded market expectations.

During the period, Marvell's first-quarter revenue hit a record high of $2.418 billion, compared with $1.895 billion in the same period last year, a year-on-year increase of 28%, slightly above the market expectation of $2.4 billion. This figure was $18 million higher than the midpoint of the previous guidance.

Breaking down the revenue structure, data center remains the primary source of revenue for Marvell, accounting for 76% of the total. However, the communications business also maintained a strong growth trend, with both segments growing by more than 27%.

Specifically, the data center business achieved revenue of $1.833 billion, a year-on-year increase of 27.22%; the communications and other segment recorded revenue of $585 million, up 28.68% year-on-year.

It is worth noting that the bottom line showed negative growth. Under GAAP, Marvell's net income was $34.5 million, a significant year-on-year decline of 80.61%, corresponding to diluted earnings per share of $0.04. Non-GAAP net income was $718 million, or $0.80 per diluted share, which was higher than the market expectation of $0.75 to $0.79. GAAP gross margin was 52.1%, and non-GAAP gross margin was 58.9%.

Regarding guidance, the AI ASIC company expects second-quarter revenue to be $2.7 billion (plus or minus 5%); GAAP gross margin is expected to be between 52.1% and 53.1%; non-GAAP gross margin is expected to be between 58.25% and 59.25%.

Adjusted earnings per share under GAAP are expected to be $0.37 (plus or minus $0.05); non-GAAP adjusted earnings per share are expected to be $0.93 (plus or minus $0.05).

Boosted by first-quarter results that beat market expectations, Marvell's shares jumped more than 10% in after-hours trading. At the time of writing, the stock was up 10.42% at $219.41, a record high.

CEO Matt Murphy stated: "We expect revenue growth to continue accelerating through each quarter of fiscal 2027, driven by sustained strong growth in our data center business."

He further noted: "The upward revision of our revenue outlook for fiscal 2027 and 2028 is primarily driven by strong market demand for our full suite of solutions, including 800G and 1.6T scale-out optical modules, 51.2T Ethernet scale-out switches, scale-up optical solutions for Near-Packaged Optics (NPO) and Co-Packaged Optics (CPO) applications, inter-domain data center interconnect modules, as well as custom XPU and XPU attachment solutions."