Marvell Lifts Operating Margin to 16.4% as Fiscal 2028 Revenue Target Reaches $16.5 Billion
Updated
Updated · Trefis · Jul 30
Marvell Lifts Operating Margin to 16.4% as Fiscal 2028 Revenue Target Reaches $16.5 Billion
1 articles · Updated · Trefis · Jul 30
Summary
Marvell’s reported operating margin reached 16.4% over the trailing 12 months, up from 0.6% a year earlier and negative 8.6% two years ago.
Fiscal 2026 revenue rose 42% while adjusted EPS climbed 81%, and management says operating expenses should grow only in the mid- to high-teens versus roughly 45% revenue growth targeted for fiscal 2028.
About $1 billion of supplier prepayments in fiscal 2027 is meant to secure capacity for AI-related demand, supporting revenue goals of nearly $11.5 billion in fiscal 2027 and $16.5 billion in fiscal 2028.
Risks center on execution rather than demand: operating cash flow covered only about four-fifths of net income, adjusted gross margin is guided near 59%, and the stock trades at roughly 57 times trailing earnings.
At $163.40, Marvell shares are up about 116% over 12 months but still sit near 52% of their 52-week high, leaving investors to weigh improving profitability against a still-rich valuation.