Marvell Reports Revenue Growth and Raises Data Center Projections
Marvell's Q2 revenue rose 37% to $2.74 billion, exceeding expectations, with an adjusted EPS of $0.94. For Q3, the company targets $3.15 billion in revenue and $1.10 EPS, while projecting 60% growth in data center operations through FY2027.
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Marvell anticipates a $3.15 billion revenue target for Q3, with an adjusted EPS of $1.10. The company now expects approximately 60% growth in data center operations for FY2027, up from 50%, with further growth above 60% in FY2028.
Revenue from the partnership with Google could reach up to $120 billion over six years, though this figure is conditional, and expectations were already integrated into Marvell's forecasts. The optical segment is projected to grow sequentially by 25% in October, highlighting strong demand for 800G technologies.
Marvell plans to maintain a gross margin of about 58% in Q3 and aims for long-term operational margins of 38% to 40%. The market may face challenges in reconciling strong growth projections with existing expectations.
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