It has been about a month since the last earnings report for Marvell Technology (MRVL Quick QuoteMRVL - Free Report) . Shares have added about 37.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Marvell due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Marvell Technology Q1 Earnings Match Estimates, Revenues Rise Y/Y

Marvell came out with first-quarter fiscal 2027 earnings of 80 cents per share, in line with the Zacks Consensus Estimate. The company reported earnings of 62 cents per share a year ago. The bottom line increased 29% year over year.

MRVL’s first-quarter fiscal 2027 revenues of $2.42 billion surpassed the Zacks Consensus Estimate by 0.59%. MRVL reported revenues of $1.90 billion in the year-ago quarter.

MRVL Leans on Data Center Momentum

The top-line record was built on demand in both reported end markets. Data center revenues increased 27% year over year and 11% sequentially to $1.83 billion. Communications and other revenues were $585 million, up 29% year over year and 3% sequentially.

Management pointed to “exceptional AI-related bookings” across its data center lineup and guided for continued sequential acceleration as fiscal 2027 progresses. The message was that AI buildout is pulling through multiple product families, including optical interconnect, custom silicon and switching.

MRVL Broadens Its Connectivity Footprint

Marvell Technology emphasized strength in 800G PAM4 products, a quick ramp of 1.6T solutions and expanding traction in Ethernet switching as networking becomes more critical in larger AI clusters. The company also said the shift toward larger, multi-site AI systems is increasing the importance of data center interconnect modules.

Strategically, MRVL highlighted an expanded partnership with NVIDIA across optics, NVLink Fusion integration and AI-RAN, intended to connect its custom silicon and optical networking capabilities into the NVIDIA ecosystem. Management said it has a line of sight to a $1 billion annualized DCI module revenue run rate during fiscal 2028.

Marvell Technology’s Profitability

MRVL reported non-GAAP gross margin of 58.9%. Non-GAAP operating margin was 35.0%, supported by $846.9 million of non-GAAP operating income. MRVL’s non-GAAP operating expenses were $576.9 million as the company continued investing in AI growth priorities.

MRVL Generates Cash While Locking in Supply

Operating cash flow was a record $638.8 million in the quarter. Cash and cash equivalents ended the period at $3.84 billion compared with $2.64 billion posted on Jan. 31, 2026. MRVL’s total debt stood at $4.96 billion.

MRVL repurchased $200 million of stock and paid $53.8 million in dividends. To support AI-driven demand, the company is forecasting approximately $1 billion of prepayments during fiscal 2027 to secure additional capacity, with the first payments beginning in the second quarter.

MRVL completed the Celestial AI acquisition on Feb. 2, 2026, and the buyout of XConn on Feb. 10, 2026, and the quarter’s results included both businesses from their acquisition dates.

The company also highlighted the acquisition of Polariton Technologies, positioning plasmonic-based silicon photonics as a pathway to higher modulator bandwidth and scaling optical performance to 3.2T and beyond.

Guidance for Q2 & Fiscal 2027

For the second quarter of fiscal 2027, Marvell Technology guided revenues to $2.7 billion (+/-5%). Non-GAAP diluted earnings are expected to be 93 cents per share (+/- 5 cents).

Management also raised its broader outlook. MRVL now expects fiscal 2027 revenues to grow about 40% year over year to nearly $11.5 billion and sees fiscal 2028 revenues rising about 45% to roughly $16.5 billion.

The company expects data center growth of about 50% in fiscal 2027 and about 55% in fiscal 2028, with interconnect positioned as a key swing factor.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted -8.27% due to these changes.

VGM Scores

At this time, Marvell has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock has a score of F on the value side, putting it in the lowest quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Marvell has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Marvell belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Applied Materials (AMAT Quick QuoteAMAT - Free Report) , has gained 48.6% over the past month. More than a month has passed since the company reported results for the quarter ended April 2026.

Applied Materials reported revenues of $7.91 billion in the last reported quarter, representing a year-over-year change of +11.4%. EPS of $2.86 for the same period compares with $2.39 a year ago.

Applied Materials is expected to post earnings of $3.35 per share for the current quarter, representing a year-over-year change of +35.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Applied Materials. Also, the stock has a VGM Score of F.