Marvell Fails to Impress With Lackluster Revenue Outlook
Marvell Technology (MRVL.O) reported its second-quarter fiscal 2027 earnings after U.S. stock market hours on August 28 Beijing time.
The company raised its revenue outlook for both fiscal 2027 and 2028, but the increases were only slightly better than market expectations.
Marvell's management provided two-year revenue guidance, expecting $12 billion in revenue for fiscal 2027 and $18 billion for fiscal 2028.
The company's data center business saw a 19% quarter-over-quarter increase in revenue, driven by the growth of connectivity products. However, the custom ASIC business did not see an expected boost following a recent agreement with Google.
Marvell's adjusted gross margin was flat quarter-over-quarter at 58.3%, and the company expects its fourth-quarter revenue to be around $3.7 billion with quarter-over-quarter growth of 15-20% for both quarters.