Companies /Technology

Super Micro Computer Inc

NASDAQ: SMCI Computer Hardware
$39.09
▼ $1.26 (−3.12%) today
Markets closed · 12:14am ET

Q3 2025 Earnings

Reported May 6, 2025, 4:07pm ET · SEC source
$0.31
Beat +3.78%
EPS · est. $0.30
$4.6B
Miss −8.92%
Revenue · est. $5.1B
+25.9%
Beating market
SMCI vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+3%+6%+9%May 6May 7report 4:07pm ETearnings+0.4%+4.9%
0+3%+6%+9%May 6May 7earnings+0.4%+4.9%
SMCI +4.9%S&P 500 +0.4%
0+3%+6%+9%May 6May 7report 4:07pm ETearnings+0.4%+4.9%
0+3%+6%+9%May 6May 7earnings+0.4%+4.9%
SMCI +4.9%NASDAQ +0.4%
0+20%+40%May 5May 14report 4:07pm ETearnings+5.2%+41.3%
0+20%+40%May 5May 14earnings+5.2%+41.3%
SMCI +41.3%S&P 500 +5.2%
0+20%+40%May 5May 14report 4:07pm ETearnings+7.7%+41.3%
0+20%+40%May 5May 14earnings+7.7%+41.3%
SMCI +41.3%NASDAQ +7.7%
−1.40%
Day of report
−1.14%
Next session
+38.55%
One week
+32.76%
30 days

S&P 500 over the same 30 days: +6.87%.

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 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

“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.”

Super Micro Computer CEO, on the earnings call

Forward Guidance & Outlook

For fiscal Q4 2025 (ending June 30, 2025), Supermicro expects net sales of $5.6 billion to $6.4 billion, GAAP diluted EPS of $0.30 to $0.40, and non-GAAP diluted EPS of $0.40 to $0.50, assuming tax rates of approximately 14.9% (GAAP) and 16.5% (non-GAAP) and fully diluted share counts of 628 million (GAAP) and 642 million (non-GAAP). For full fiscal year 2025, the company lowered its revenue guidance from $23.5–$25.0 billion to $21.8–$22.6 billion. Management expects deferred customer commitments to land in the June and September quarters but cautioned that economic uncertainty and tariff impacts may have a short-term effect.

SMCI YoY Financials

Revenue$4.6B
Gross Profit$440.2M
Operating Income$146.8M
Net Income$108.8M

Figures from SEC filings and company reports. Not investment advice.