Marvell Technology, Inc. · Q2 FY2027 call

we now expect overall Marvell revenue in fiscal 2027 to grow approximately 45% year over year to roughly $12 billion, up from our prior outlook of approximately $11.5 billion just one quarter ago.

we now expect fiscal 2028 revenue of approximately $18 billion, up $1.5 billion from the $16.5 billion outlook we provided just one quarter ago. Importantly, even as our revenue base becomes significantly larger, our growth rate is accelerating.

we expect this acceleration to continue, with data center revenue forecasted to grow more than 20% sequentially and roughly 75% year-over-year.

The warrant agreement encompasses custom programs already in execution that were awarded to Marvell over the past several years, new design wins, and future potential programs.

For the third fiscal quarter, we expect revenue to decline in the low to mid-teens percentage range, both sequentially and year over year, followed by a solid sequential recovery in the fourth quarter.

Cash flow from operations was $606 million in the second quarter, down slightly quarter-over-quarter, primarily reflecting the higher capacity prepayments to suppliers in support of Marvell's future growth.

Revenue levels and product mix remain key determinants of gross margin in any given quarter, with the forecasted acceleration of our custom business creating the sequential headwind in the fiscal third quarter.

For fiscal 2027, we expect non-GAAP operating expenses of approximately $2.55 billion, slightly above our prior expectation of $2.45 billion, reflecting the significantly larger revenue opportunity we now see.

we expect significant operating leverage, with non-GAAP operating margin likely to enter our 38%-40% long-term target range in Q4 of this fiscal year.

We remain on pace to make approximately $1 billion of capacity prepayments to suppliers in fiscal 2027, consistent with the guidance we provided last quarter.