Q2 FY2027 net revenue reached $2,739.3M, up 37% year-over-year, with data center revenue growing 46% to $2,171.5M (79% of total) driven by AI-related demand across electro-optics, custom, storage, and switching products; gross margin improved to 53.1% from 50.4% prior year on better cost absorption and product mix, while communications and other end market revenue rose 10% on normalizing customer inventory levels.
During Q1 FY2027, Marvell announced a strategic partnership with NVIDIA to connect Marvell's custom XPUs and compatible scale-up networking with NVIDIA's AI infrastructure ecosystem, and on March 31, 2026, completed the issuance of 2.0 million shares of Series A Convertible Preferred Stock to NVIDIA for $2.0 billion in cash; the preferred shares are initially convertible into up to ~21.8 million common shares at approximately $91.84 per share, subject to HSR waiting period expiration, and no conversion had occurred as of August 1, 2026.
Marvell completed two strategic acquisitions in Q1 FY2027 that expanded its AI data center connectivity portfolio: Celestial AI (Feb 2, 2026, $3.5B total consideration including contingent earnout through fiscal 2029) for its Photonic Fabric scale-up interconnect technology, and XConn Technologies (Feb 10, 2026, $469M) for advanced PCIe/CXL switching silicon augmenting the UALink scale-up switch team; both companies' revenue and earnings contributions were not material to the quarter, and the Celestial contingent consideration liability increased $101.9M in Q2 to $749.5M.
Subsequent to quarter end on August 18, 2026, Marvell issued a warrant to a customer for up to 59.0 million common shares at an exercise price of $206.58 per share over a seven-year term expiring August 2033, tied to a commercial agreement for custom semiconductor product development; the warrant vests from Q3 FY2027 through fiscal 2033 upon meeting specified revenue milestone or time-based conditions, following a similar 1.0 million share customer warrant issued during fiscal 2026.
The company disclosed a tight supply environment for AI-related components and manufacturing resources, including advanced wafer fabrication, advanced packaging, and large body substrates, resulting in increased lead times, inability to fully meet demand, and higher costs; TSMC remains the sole foundry source for all advanced process-node wafers, and China shipment-destination revenue rose to 42% of total from 29% a year earlier, though the filing notes a substantial majority of China shipments serve non-China-based customers with contract manufacturing operations in China.
(Filed on May 28, 2026)
+27.6%
52.1%
$3.8B
Completed two acquisitions in Q1 FY2027: Celestial AI (Feb 2) for $3.5B total consideration (cash, stock, and contingent consideration through FY2029) to add a Photonic Fabric scale-up interconnect platform for next-gen AI and cloud data centers; and XConn Technologies (Feb 10) for $469M to add advanced PCIe/CXL switching silicon and augment the UALink scale-up switch team. Both deals are preliminary in purchase-price allocation; Celestial contributed $951M in IPR&D and $2.4B goodwill; XConn contributed $395M goodwill. Revenue and earnings from both acquisitions since closing were not material.
Announced a strategic partnership with NVIDIA to connect Marvell's custom XPUs and compatible scale-up networking with NVIDIA's AI infrastructure ecosystem, and on March 31, 2026 completed the sale of 2.0 million shares of Series A Convertible Preferred Stock to NVIDIA for $2.0 billion cash. The preferred shares are initially convertible into approximately 21.8 million common shares at ~$91.84/share, subject to HSR waiting-period expiration; no conversion had occurred as of May 2, 2026. In April 2026 Marvell also entered a $300M 12-month forward stock purchase contract to hedge stock-price exposure on the Celestial contingent consideration, recording an $81.1M unrealized gain in the quarter.
Q1 FY2027 net revenue was $2.42B, up 28% YoY, with data center revenue of $1.83B (76% of total) up 27% driven by AI-related demand across electro-optics, custom silicon, storage, and switching, and communications/other up 29% on normalizing customer inventory levels. China-destination shipments rose to 44% of revenue (from 37% a year prior), and customer concentration intensified: three customers represented 75% of gross receivables, with one distributor accounting for 45% of revenue and one direct customer for 16%. Gross margin improved 180 bps to 52.1% on better cost absorption; net income was $34.5M, pressured by a $331.8M non-cash increase in the Celestial contingent-consideration liability and $10.7M of restructuring charges.
The Fiscal 2025 restructuring plan—aimed at shifting R&D investment toward the data center end market and canceling certain future product releases in other end markets—continued with $8.7M of net charges in Q1 FY2027, primarily contractual obligations and other costs. The remaining restructuring liability stood at $247.4M ($62.6M current, $184.8M non-current), and the company expects the plan to be substantially complete by the end of fiscal 2027.
Subsequent to quarter end, Marvell entered agreements to secure long-term wafer and substrate manufacturing capacity through fiscal 2030 and 2033, committing $870M in deposits payable in quarterly installments from Q2 FY2027 through Q2 FY2028. Existing unconditional purchase commitments to foundries, test, and assembly partners total $2.76B, with $2.27B due in the remainder of fiscal 2027, reflecting tight AI-related component and advanced-packaging supply conditions the company cited as a continued industry constraint.
(Filed on March 11, 2026)
+22.1%
51.7%
$2.6B
Annual context (fiscal year ended January 31, 2026): Marvell reported net revenue of $8.19 billion, up 42% year-over-year, with data center revenue of $6.10 billion (74% of total) growing 46% on AI-related demand for custom products and electro-optics, and communications and other revenue of $2.09 billion growing 31% as customer inventory normalized; gross margin improved 9.7 points to 51.0%, and the company returned $2.2 billion to shareholders via buybacks and dividends. In Q4 specifically, the company repurchased 3.3 million shares and settled its accelerated share repurchase agreement (cumulative 11.7 million shares at an average $85.21), with $5.5 billion remaining under the repurchase authorization.
Beginning in Q4 fiscal 2026, Marvell consolidated revenue previously reported under four separate end markets (enterprise networking, carrier infrastructure, consumer, and automotive/industrial) into a single 'communications and other' segment; the data center end market composition was unchanged. The automotive/industrial category had been partially divested when the company sold its automotive ethernet business to Infineon Technologies on August 14, 2025 for $2.5 billion in cash (Q3 fiscal 2026, generating a $1.8 billion pre-tax gain).
Subsequent to fiscal year-end, Marvell completed two acquisitions that materially expand its AI connectivity and switching portfolio: Celestial AI (closed February 2, 2026, approximately $1.3 billion cash plus 24.5 million shares, with contingent cash and equity payments possible through fiscal 2029) for its Photonic Fabric scale-up interconnect platform, and XConn Technologies (closed February 10, 2026, approximately $280 million cash plus 2.1 million shares) for advanced PCIe and CXL switching silicon that augments the company's UALink scale-up switch team. In connection with the Celestial deal, Marvell issued a warrant to a customer for up to 1.0 million shares at an $87.00 exercise price, vesting on that customer's purchases of photonic fabric products through December 31, 2030.
The Fiscal 2025 restructuring plan, initiated in Q3 fiscal 2025 to redirect R&D investment toward the data center end market and cancel certain product releases in other end markets, generated $30.0 million in charges during fiscal 2026 (versus $702.7 million in fiscal 2025, which included $528.8 million in impairment and write-off charges); the company expects the plan's actions to be substantially completed by the end of fiscal 2027. Total net restructuring charges for fiscal 2026 were $15.5 million.
On the product roadmap, Marvell has successfully executed multiple 5-nanometer custom ASIC designs, is progressing 3-nm designs, and is developing its advanced 2-nm-generation platform; it is also developing UALink and ESUN scale-up switches leveraging its Teralynx switch architecture and 224G SerDes for next-generation AI data center fabrics. The Celestial acquisition adds a first-generation Photonic Fabric chiplet integrating drivers, TIAs, equalizers, SerDes, modulators, photodiodes, and waveguides for large AI cluster scale-out networking. As of January 31, 2026, the company employed 7,480 people globally, with a fiscal 2026 voluntary turnover rate of approximately 7%.
(Filed on December 3, 2025)
+36.8%
51.6%
$2.7B
Marvell completed the sale of its automotive ethernet business to Infineon Technologies AG on August 14, 2025 for $2.5 billion in cash, recording a $1.8 billion pre-tax gain in Q3 FY2026 and derecognizing $524.7 million of associated goodwill; the divestiture drove the 58% YoY decline in automotive/industrial revenue (to $35.0M) for the quarter. Q3 FY2026 net revenue rose 37% to $2.07 billion, with data center (driven by AI-related demand for custom products and electro-optics) growing 38% to $1.52 billion (73% of revenue), carrier infrastructure up 98%, and enterprise networking up 57% as both markets continued recovering from prior inventory corrections.
The Fiscal 2025 restructuring plan—initiated in Q3 FY2025 to increase R&D investment in data center and reduce new-product development in other end markets, including cancellation of certain future product releases—continued with modest Q3 FY2026 charges of $9.6 million (versus $358.3 million in the prior-year quarter). During the quarter the company ceased use of a 10-year technology licensing agreement (with $268.5 million in remaining fees still payable quarterly over the contract term) and recognized $7.1 million in contractual-obligation recognition charges. The plan is expected to be substantially completed by the end of fiscal 2027.
Subsequent to quarter end (December 2, 2025), Marvell announced its intent to acquire Celestial AI Inc., a provider of a photonic fabric platform purpose-built for next-generation scale-up interconnect, in a transaction valued at approximately $3.25 billion at close and potentially up to $5.5 billion with earn-out milestones, funded with a mix of cash and common stock. The acquisition is expected to close in Q1 calendar 2026 subject to regulatory approval; a new customer warrant for up to 1.0 million shares at $87.00 per share was also issued in connection with the deal.
Customer and geographic concentration remained pronounced: three customers accounted for 70% of gross accounts receivable at November 1, 2025, a single distributor (Distributor A) represented 38% of Q3 revenue, and China-destination shipments comprised 40% of quarterly net revenue ($838.7M), with total Asia-destination shipments at 77%. Sales to customers with operations outside the U.S. are primarily in Asia, where the majority of products are manufactured by third-party foundries concentrated in Taiwan.
On the capital-return side, the Board authorized a $5.0 billion addition to the stock repurchase program on September 24, 2025, and Marvell executed a $1.0 billion accelerated share repurchase (ASR) the same day (initial delivery of ~10.7 million shares at an average price of $69.31); total Q3 repurchases were 15.0 million shares for $1.3 billion, leaving $5.7 billion of remaining authorization as of November 1, 2025. Cash and equivalents rose to $2.7 billion (from $948.3 million at fiscal year-start) largely reflecting the Infineon divestiture proceeds.
