Marvell Grows Data Center Revenue 58% to $2.006B, Plans $500M Photonic Segment
Marvell’s data center revenue rose 58% year-over-year to $2.006 billion in Q2 fiscal 2026, with the segment comprising 74% of total sales and fiscal 2027 revenue growth forecast at 22.8%. Marvell is integrating Celestial AI and XConn to deploy photonic fabrics with PCIe Gen 6/CXL switching, targeting $500 million Celestial revenue and $100 million XConn revenue by fiscal 2028.
1. Fiscal 2026 Q2 Results
Marvell reported $2.006 billion in Q2 fiscal 2026 revenue, up 58% year-over-year, driven by its data center segment which accounted for 74% of total sales. Analysts forecast fiscal 2027 revenue growth of 22.8% and earnings growth of 23.3% as AI infrastructure demand accelerates.
2. Photonic & Interconnect Strategy
The company is integrating recently acquired Celestial AI and XConn Technologies to combine photonic fabric technology with PCIe Gen 6 and CXL switching. Marvell aims to achieve $500 million in Celestial AI revenue and $100 million in XConn revenue by fiscal 2028, addressing memory disaggregation and bandwidth bottlenecks.
3. Competitive Risks and Outlook
Marvell faces pressure from hyperscalers bringing silicon design in-house and competition from lower-cost custom design firms, which may impact future data center ASIC wins. Successful adoption of optical interconnects and timely execution on photonic integration will be critical for sustaining margins and market share.