Super Micro Computer's sales nearly doubled last quarter, current quarter and new fiscal year guidance far exceeds expectations | Earnings Report Highlights

Super Micro Computer's financial report for the fourth fiscal quarter ending June 30, 2026, sends a clear signal: although revenue was slightly below Wall Street expectations, profitability improved significantly, and the guidance for the new fiscal quarter was much higher than market forecasts, becoming the core factor driving the stock price to surge in after-hours trading.

In the fourth fiscal quarter, the company reported net sales of $11.12 billion, about 1.2% below analyst expectations but nearly double year-on-year; non-GAAP adjusted earnings per share (EPS) grew by 315% year-on-year to $1.70, almost 7% higher than market expectations. More critically, the company's gross margin saw a marked recovery. The fourth-quarter gross margin reached 17.5%, with the adjusted gross margin at 17.6%—not only above the previously raised guidance of 15% to 17%, but also well over the initial guidance of 8.2% to 8.4%.

Looking ahead to this fiscal quarter, Super Micro Computer provided even stronger guidance. The company expects first-quarter net sales between $14.5 billion and $15.5 billion, with the midpoint about 25% higher than analyst projections; adjusted EPS is expected at $1.01 to $1.10, nearly 43% above market expectations. This means that despite previous market anticipation about AI server demand, the company’s order conversion and revenue growth trajectory still exceeded estimates.

Management attributed the performance improvement to the advancement of its AI and total IT solutions strategy, a rising number of enterprise customers, optimization of client and product mix, and the expanded adoption of its modular data center architecture solution (DCBBS). CEO Charles Liang stated that the company added hundreds of enterprise and other customers over the past year, saw new orders exceeding $60 billion in the fourth quarter, and entered fiscal 2027 with a record backlog of orders.

After the report, Super Micro Computer's share price, which closed up 0.45% on Tuesday, jumped sharply in after-hours trading, at one point surging over 10%. This performance reflects the market's reassessment of growth and profitability resilience. Analysts believe factors supporting the stock price increase include: last quarter’s adjusted EPS far exceeding expectations, indicating stronger-than-anticipated profit flexibility; significant improvement in gross margin, alleviating margin compression concerns; and revenue guidance for this fiscal quarter and year far above expectations, reinforcing the logic of continued expansion in AI server demand.

In the fourth quarter, Super Micro Computer reported net sales of $11.12 billion, below analysts’ expectations of $11.26 billion and toward the low end of its own guidance range of $11 billion to $12.5 billion. However, compared with $5.76 billion a year ago, revenue grew 91.4% year-on-year, nearly doubling, illustrating the continued robust demand for AI servers, data center infrastructure, and related IT solutions.

The company’s management explained that the revenue miss was mainly due to certain customers facing delays in power, cooling, and network deployment. These delays do not mean orders will be lost, but that revenue recognition is pushed back. The company stated that it expects delayed revenues to be recognized gradually over the next few quarters.

This is also the “flaw” in this quarter’s report that the market can relatively accept: revenue did not significantly beat expectations, but the main reason was delivery and infrastructure rhythm, rather than weak demand. Considering the company also disclosed more than $60 billion in new orders for the fourth quarter and a record year-end backlog, investors are more focused on the company's revenue realization ability in the coming quarters.

Compared to the slight revenue miss, Super Micro Computer’s profit performance was significantly better than the market expected.

In the fourth quarter, the company reported net profit of $1.17 billion, about six times the $195.2 million of a year earlier—a fivefold year-on-year increase; diluted EPS was $1.62, 5.2 times last year’s $0.31. Excluding some one-off items, adjusted EPS was $1.70, above analyst expectations of $1.59.

This indicates that the company is not just benefiting from AI server-driven scale growth, but is also improving profit quality via a better product and client structure. For Super Micro Computer, which had previously faced market doubts over gross margin volatility and financial transparency, the improvement in profitability is especially important.

From the market’s reaction, investors did not focus on the slight revenue miss, but paid more attention to the beat on EPS, gross margin improvement, and upward revenue guidance. This is also the main reason for the after-hours stock surge.

One of the most closely watched indicators in this report is gross margin.

Super Micro Computer’s fourth-quarter gross margin reached 17.5%, with adjusted gross margin at 17.6%. This level is higher than the 15%–17% range provided in July and much higher than the initial 8.2%–8.4% guidance.

Management stated that the improvement in gross margin came mainly from optimizing customer and product mix, including a more diversified enterprise client structure, broader product lines, and the optimized modular data center solution. The company also noted that some one-time positive factors benefited gross margin this quarter, but that the main driver was strategic adjustment of customer and product structures.

For Super Micro Computer, gross margin improvement is doubly significant:

On one hand, the market previously worried about intensifying competition in the AI server industry, the relatively low gross margin of customized projects, and the high concentration of major clients potentially squeezing profit margins; on the other hand, the company’s gross margin rebounded sharply this quarter, showing that it is not simply relying on low-margin volume for growth in the AI infrastructure supply chain, but has the capability to improve profitability through solution-based offerings, modularization, and enterprise client expansion.

However, the company expects first-quarter gross margin of 10.4% to 10.8%, a considerable drop from the fourth quarter. This indicates that the high gross margin in the fourth quarter may not be linearly extendable, and investors should continue to monitor the sustainability of its high margin levels going forward.

The true after-hours rally trigger was the strong outlook provided for the first fiscal quarter.

Super Micro Computer expects first-quarter net sales of $14.5 billion to $15.5 billion, with the midpoint at $15 billion—well above analyst expectations of $11.99 billion. Using the midpoint, first-quarter revenue would be a substantial jump over the fourth quarter.

In terms of profits, the company expects first-quarter adjusted EPS to be $1.01 to $1.10, higher than the market expectation of $0.74. Even considering that the gross margin is expected to fall compared to the fourth quarter, the expansion in revenue scale is still expected to support a profit beat.

This guidance indicates that Super Micro Computer’s order backlog is gradually converting to revenue. Especially amid ongoing expansion of AI data centers, robust GPU server demand, and power and liquid cooling infrastructure as critical bottlenecks, the company, as a supplier of AI servers and total solutions, remains in a high-growth demand cycle.

In addition to first-quarter guidance, Super Micro Computer also provided a full-year fiscal 2027 outlook: it expects net sales of $65 billion to $72 billion for the year. The midpoint of the guidance range is more than 29% above analysts’ current estimate of about $52.99 billion.

If the company achieves the midpoint, this year’s revenue would represent about 75% year-on-year growth, rather than the less than 36% increase expected by analysts. Compared to company guidance, Wall Street clearly underestimates its full-year growth potential.

This ambitious full-year target is backed by orders. The company revealed that new orders exceeded $60 billion in the fourth quarter, driving backlog to a record high as it enters fiscal 2027. CEO Charles Liang stated that the company’s “Total AI/IT Solutions” strategy continues to deliver strong results, with hundreds of new enterprise and other customers added over the past year.

This also suggests Super Micro Computer is striving to eliminate market concerns over its heavy reliance on a small number of mega-clients, and is enhancing revenue stability and profit margins by broadening its enterprise customer base, expanding its product portfolio, and advancing modular data center solutions.

Although revenue was slightly below expectations, management attributed this to delays by some customers in power, cooling, and network infrastructure. This is noteworthy, as infrastructure is currently one of the major bottlenecks for AI data center expansion.

For AI server manufacturers, orders do not immediately translate to revenue. Customers must complete site, power, cooling, network, and deployment environment preparations before server delivery and revenue recognition can take place. Thus, the company’s revenue being at the lower end of its guidance this quarter does not necessarily indicate weaker demand, but may instead reflect a mismatch in delivery timing across the AI infrastructure build-out chain.

However, this also brings a subsequent risk: if power, liquid cooling, or networking bottlenecks persist, the company’s strong order book may continue to face delayed revenue recognition. The market will next focus on whether the company can successfully convert its record backlog into sales and cash flow over the next several quarters.