Marvell Q2 2027 Earnings Preview

Marvell Q2 2027 earnings preview: Traders watch AI data-center demand, company guidance and the Google custom ASIC partnership ahead of the Aug. 27 report.

August 24, 2026·3 min read
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Flat vector cover of a silicon die sprouting an optical module to depict Marvell Q2 2027 earnings and AI data-center demand.

KEY TAKEAWAYS

  • Company guided Q2 revenue to $2.7 billion ±5% and non-GAAP EPS to $0.93 ±$0.05.
  • Google custom ASIC deal includes warrants to buy about 58.97 million shares at $206.58.
  • Traders will watch whether guidance and AI data-center demand validate the raised multi-year revenue targets.

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Marvell Technology, Inc. (NASDAQ: MRVL) will report fiscal Q2 2027 earnings on Aug. 27 after the U.S. market close. Strong AI data-center demand and an expanded Google custom ASIC partnership have raised the company’s multi-year revenue targets while intensifying investor focus on valuation and execution risks.

Guidance and Analyst Expectations

Marvell guided Q2 revenue to $2.7 billion with a 5% margin of error and non-GAAP earnings per share (EPS) to $0.93 ±$0.05, setting a formal EPS range of $0.88 to $0.98. GAAP EPS guidance stands at $0.37 ±$0.05. The company projects GAAP gross margins between 52.1% and 53.1%, and non-GAAP gross margins between 58.25% and 59.25%.

Street consensus centers on roughly $2.71 billion in revenue and $0.93 non-GAAP EPS, implying about 35% and 38–39% year-over-year growth, respectively. Analyst revenue estimates range from $2.60 billion to $2.77 billion, with EPS forecasts between $0.88 and $0.94. Management attributes this outlook to strong AI-related bookings and growth in data-center optics and custom silicon programs.

For the medium term, Marvell raised revenue targets to nearly $11.5 billion for fiscal 2027 and about $16.5 billion for fiscal 2028, implying roughly 40% and 45% annual growth. Data-center revenue is expected to expand about 50% in fiscal 2027, with interconnect revenue growing more than 70%.

AI Infrastructure Growth and Strategic Partnerships

In fiscal Q4 2026, Marvell reported revenue of $2.219 billion, up 7% sequentially, and non-GAAP EPS of $0.80, slightly above guidance. Full-year revenue reached approximately $8.2 billion, with data-center sales exceeding $6 billion, a 46% increase year over year. CEO Matt Murphy described the demand as “record.”

The company highlighted strong momentum in its scale-out optical business, driven by robust demand for 800G products and “very strong bookings” for 1.6T solutions that began production in the second half of fiscal 2026. These products are expected to ramp rapidly in fiscal 2027 and contribute significantly in fiscal 2028. Scale-out switching revenue surpassed $300 million in fiscal 2026 and is projected to exceed $600 million in fiscal 2027.

Marvell expanded its long-term partnership with Google to develop custom chips supporting Google’s TPU ecosystem. This includes AI inference offload engines, storage controllers, NIC/SmartNIC/DPU-style controllers, and CXL-based memory interface controllers. The agreement grants Google warrants to purchase up to about 58.97 million Marvell shares at $206.58 each, representing roughly 7% of the company.

JPMorgan modeled the deal’s tranche structure as implying approximately $120 billion of potential ASIC attach revenue over about 6.25 years, or $19.2 billion annually. The bank views most of this revenue as incremental to prior company targets, supporting its bullish EPS outlook and Overweight rating with a $240 price target. RBC reiterated an Outperform rating with a $360 target. Other brokers have set targets in the low- to mid-$300s. Analysts generally regard Marvell as a leading AI chip infrastructure player but caution about elevated forward multiples, potential dilution from the warrants, and risks from hyperscalers bringing more silicon design in-house. Nvidia’s roughly $2 billion investment in Marvell earlier in 2026 has strengthened collaboration on interconnects and photonics.

Investors will watch the upcoming earnings report to assess whether management’s guidance and the Google partnership validate the company’s raised multi-year outlook and clarify the balance between rapid AI-driven growth and the execution and valuation risks noted by analysts.

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