Companies /Technology

Super Micro Computer Inc

NASDAQ: SMCI Computer Hardware
$39.09
▼ $1.26 (−3.12%) today
Markets closed · 6:11am ET

Q1 2026 Earnings

Reported Nov 4, 2025, 4:08pm ET · SEC source
$0.35
Miss −10.07%
EPS · est. $0.39
$5.0B
Miss −13.42%
Revenue · est. $5.8B
−28.4%
Trailing market
SMCI vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+5%+10%Nov 4Nov 5report 4:08pm ETearnings+0.3%−0.9%
0+5%+10%Nov 4Nov 5earnings+0.3%−0.9%
SMCI −0.9%S&P 500 +0.3%
0+5%+10%Nov 4Nov 5report 4:08pm ETearnings+0.6%−0.9%
0+5%+10%Nov 4Nov 5earnings+0.6%−0.9%
SMCI −0.9%NASDAQ +0.6%
−10%0+10%+20%Nov 3Nov 12report 4:08pm ETearnings+1.1%−11.6%
−10%0+10%+20%Nov 3Nov 12earnings+1.1%−11.6%
SMCI −11.6%S&P 500 +1.1%
−10%0+10%+20%Nov 3Nov 12report 4:08pm ETearnings+0.3%−11.6%
−10%0+10%+20%Nov 3Nov 12earnings+0.3%−11.6%
SMCI −11.6%NASDAQ +0.3%
−6.60%
Day of report
−11.33%
Next session
−18.10%
One week
−26.81%
30 days

S&P 500 over the same 30 days: +1.55%.

Did SMCI Beat Earnings? Q1 2026 Results

Super Micro Computer delivered a bruising fiscal Q1 2026, missing on both top and bottom lines as revenue of $5.02 billion fell 13.42% short of the $5.80 billion consensus and slid 15.5% from the year-ago quarter's $5.94 billion. Non-GAAP diluted EPS of $0.35 trailed the $0.39 analyst estimate by 10.07%, with GAAP net income collapsing to $168.28 million from $424.33 million a year earlier. The core culprit was severe gross margin compression, with GAAP margins shrinking to 9.3% from 13.1% in the prior-year period, reflecting intense pricing pressure in the AI server market even as Supermicro actively showcased next-generation liquid-cooled Blackwell GPU platforms. Operations consumed $917.52 million in cash, driven largely by a $1.09 billion inventory build that signals aggressive positioning for anticipated shipments. Management framed Q1 as a deliberate trough, pointing to more than $13.00 billion in Blackwell Ultra orders and guiding Q2 revenue to $10.00 to $11.00 billion, with full fiscal year 2026 revenue expected to reach at least $36.00 billion.

Key Takeaways
  • AI datacenter infrastructure demand driving order book expansion
  • More than $13 billion in Blackwell Ultra orders
  • Inventory build-up of $5.7 billion ahead of anticipated shipment ramp
  • Deferred revenue increased to $597 million current and $431 million non-current

“Powered by DCBBS, Supermicro is expanding/transforming into a leading AI and datacenter infrastructure company, delivering total solutions that simplify deployment, accelerate time-to-market, and reduce TCO.”

Super Micro Computer CEO, on the earnings call

Forward Guidance & Outlook

For Q2 FY2026 (ending December 31, 2025), Supermicro expects net sales of $10.0 billion to $11.0 billion, GAAP diluted EPS of $0.37 to $0.45, and non-GAAP diluted EPS of $0.46 to $0.54 (assuming ~15.6% GAAP and ~16.8% non-GAAP tax rates, with 666 million GAAP and 680 million non-GAAP fully diluted shares). Q2 guidance includes approximately $64 million in expected stock-based compensation net of $18 million in tax effects. For full fiscal year 2026, the company expects net sales of at least $36.0 billion. The company cited a rapidly expanding order book with more than $13 billion in Blackwell Ultra orders.

SMCI YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$2.0B$4.0B$6.0B$5.9B$5.0BRevenue$775.6M$467.4MGross Profit$509.2M$182.3MOperating Income$424.3M$168.3MNet Income
$0$2.0B$4.0B$6.0BRevenueGross ProfitOperating IncomeNet Income

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