Super Micro Computer

SMCI Q3 2025 Earnings

Reported May 6, 2025 at 4:07 PM ET · SEC Source

Q3 25 EPS

$0.31

BEAT +3.78%

Est. $0.30

Q3 25 Revenue

$4.60B

MISS 8.92%

Est. $5.05B

vs S&P Since Q3 25

-32.3%

TRAILING MARKET

SMCI -2.4% vs S&P +29.9%

Market Reaction

Did SMCI Beat Earnings? Q3 2025 Results

Super Micro Computer delivered a bruising fiscal third quarter, posting non-GAAP diluted EPS of $0.31 on revenue of $4.60 billion, falling well short of Wall Street expectations as customer hesitation over AI platform decisions created a pronounced d… Read more Super Micro Computer delivered a bruising fiscal third quarter, posting non-GAAP diluted EPS of $0.31 on revenue of $4.60 billion, falling well short of Wall Street expectations as customer hesitation over AI platform decisions created a pronounced demand gap. The results marked a 19% sequential revenue decline from $5.68 billion in Q2 FY2025, and while year-over-year sales grew 19.5% from $3.85 billion, profitability deteriorated sharply, with GAAP gross margin collapsing to 9.6% from 15.5% a year ago. CEO Charles Liang pointed to customers delaying platform commitments amid the transition between GPU generations as the primary culprit, a dynamic he expects to unwind in the June and September quarters. Compounding the pressure, the company acknowledged that economic uncertainty and tariff impacts could create near-term headwinds, prompting a second consecutive cut to full-year FY2025 revenue guidance, now set at $21.80 billion to $22.60 billion. For Q4 FY2025, Supermicro guided net sales of $5.60 billion to $6.40 billion and non-GAAP EPS of $0.40 to $0.50.

Key Takeaways

  • 19.5% year-over-year revenue growth driven by AI infrastructure demand
  • Customer platform decision delays negatively impacted sequential revenue
  • Gross margin compression to 9.6% from 15.5% year-over-year
  • Strong operating cash flow of $627 million in Q3
  • Loss on extinguishment of convertible notes of $30.3 million
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SMCI YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

“We continue to make great progress with our DCBBS (Data Center Building Block Solution), DLC (Direct Liquid Cooled-2) and AI technology leadership, but some customers delayed making platform decisions in the quarter.”

— Charles Liang, Q3 2025 Earnings Press Release