Marvell Technology Q1 Fiscal 2027 10-Q: Revenue Rises 28%, Acquisitions Expand AI Connectivity Portfolio

Total net revenue for the quarter; growth driven by data center and communications & other end markets.

Prior-year comparable quarter net revenue.

Represents 76% of total net revenue; growth attributed to AI-related demand for electro-optics, custom, storage, and switching products.

Prior-year comparable quarter data center revenue; also 76% of total net revenue.

Represents 24% of total net revenue; recovery attributed to normalizing customer inventory levels, partially offset by automotive ethernet divestiture.

Prior-year comparable quarter communications and other revenue; also 24% of total net revenue.

Gross profit increased due to better cost absorption from higher revenues, partially offset by product mix shift.

Increased 1.8 percentage points year over year.

Prior-year comparable quarter gross margin.

COGS as a percentage of net revenue improved to 47.9% from 49.7%.

27.0% of net revenue; increase driven by higher headcount including acquisition-related employees and $22.3 million in higher acquisition-related costs.

10.7% of net revenue; increase included $42.6 million in higher acquisition-related costs.

Net charges under the Fiscal 2025 Plan, primarily related to contractual obligations.

Prior-year period reflected a net gain, primarily from a gain on sale of restructuring-affected property.

14.0% of net revenue.

14.3% of net revenue in the prior-year period.

Includes interest, amortization of debt issuance costs, and accretion of discount on outstanding debt.

Primarily driven by $331.8 million increase in fair value of the Celestial contingent consideration liability, partially offset by $81.1 million unrealized gain on forward stock purchase contract.

10.6% of net revenue; increased $201.4 million year over year primarily due to contingent consideration fair value change.

Significant decrease year over year driven by the rise in other expense, net.

Effective tax rate increase driven by non-deductible adjustments to contingent consideration liability, net of forward stock purchase contract tax impacts.

1.4% of net revenue; significantly lower than prior year primarily due to fair value change in contingent consideration liability.

Prior-year comparable quarter net income; 9.4% of net revenue.

Weighted-average basic shares outstanding of 882.0 million.

Weighted-average diluted shares outstanding of 893.3 million.

Prior-year comparable quarter basic EPS.

Prior-year comparable quarter diluted EPS.

Includes common stock and preferred stock on an as-converted basis under the two-class method.

Includes effect of dilutive stock-based awards, warrant shares, and conversion of preferred stock.

Increased $1.2 billion from $2,638.8 million at January 31, 2026.

Increased from $22,285.3 million at January 31, 2026, primarily reflecting the Celestial and XConn acquisitions.

Increased approximately $2.8 billion in the quarter due to Celestial, XConn, and an immaterial acquisition.

Includes $1,297.0 million of in-process R&D and $1,264.5 million of amortizable intangible assets.

Includes long-term debt of $4,961.3 million and other non-current liabilities of $1,490.6 million.

Total face value of borrowings was $4,999.9 million after repayment of 2026 Senior Notes and issuance of 2036 Senior Notes.

Increased from $14,308.4 million at January 31, 2026, primarily due to $2.0 billion preferred stock issuance to NVIDIA and common stock issued in acquisitions.

Includes significant non-cash add-backs including $331.8 million contingent consideration fair value change and $207.6 million stock-based compensation.

Primarily reflects $1,270.9 million in acquisition payments (net of cash acquired) and $155.7 million in capital expenditures.

Primarily reflects $2,000.0 million preferred stock proceeds and $998.9 million debt proceeds, partially offset by $500.0 million debt repayment and $200.0 million share repurchases.

Purchases of property and equipment.

Non-cash; included in cash flow reconciliation.

Decreased from $245.7 million in the prior-year quarter.

Excludes amortization of acquired intangible assets, which is separately disclosed.

Non-cash charge recorded in Other expense, net; relates to the Celestial acquisition earn-out.

Level 3 fair value; increased from initial measurement of $315.8 million at acquisition date to $647.6 million at quarter end.

Total dividends paid were $53.8 million.

1.4 million shares repurchased; $5.3 billion remained available under the repurchase program as of May 2, 2026.

44% of total net revenue; up from 37% in the prior-year quarter. Filing notes a substantial majority of China shipments relate to non-China-based customers with manufacturing operations in China.

21% of total net revenue; up from 17% in the prior-year quarter.

7% of total net revenue; down from 16% in the prior-year quarter.

49% of total net revenue; down from 56% in the prior-year quarter.

51% of total net revenue; up from 44% in the prior-year quarter. Single distributor (Distributor A) represented 45% of total net revenue.

As reported in the filing cover page.

Includes $2,265.2 million due in the remainder of fiscal 2027.

Comprised of cash, common stock (24.5 million shares), replacement equity awards, and contingent consideration.

Comprised of cash, common stock (2.1 million shares), replacement equity awards, and settlement of pre-existing contractual relationship.

2.0 million shares issued to NVIDIA Corporation at $1,000 stated value per share; initially convertible into approximately 21.8 million common shares at ~$91.84 per share.