Super Micro Computer, Inc. (SMCI) Earnings & Analysis

Latest quarter

Super Micro reported Q4 FY2026 revenue of $11.1 billion, up 93.2% from a year earlier. The company’s reported revenue exceeded the $11.0 billion consensus by 1.09%. Super Micro also reported earnings per share of $1.70, compared with the $0.68 consensus, a 150% surprise; reported-quarter earnings were $1.70 versus $0.41 a year earlier.

The company reported gross margin of 17.5%, compared with 9.45% in Q4 FY2025, and operating margin of 13.4%, compared with 3.97% a year earlier. Super Micro said enterprise and channel revenue represented 50.0% of Q4 FY2026 revenue, compared with 28% in the prior quarter. Free cash flow was $732.1 million, compared with $840.9 million in Q4 FY2025.

Super Micro’s Q4 revenue of $11.1 billion was within its prior $11.0 billion to $12.5 billion range, while its 17.5% gross margin was above its prior 8.20% to 8.40% range.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On the Q3 FY2026 earnings call, Chief Executive Officer Charles Liang said customer-site power and networking readiness delayed some cloud deployments, while the company expected to recognize the deferred revenue in upcoming quarters. Chief Financial Officer David Weigand said orders and backlog remained strong across the customer base, with AI GPU-related platforms contributing more than 80% of Q3 revenue.

Liang said the company was expanding its enterprise, channel, cloud and data-center customer base and was selling more complete DCBPS offerings that combine hardware, cooling, networking, software and services. He said DCBPS customers were increasing and that he expected at least 20% of net income to come from DCBPS, including management software, over the next two years. Liang also said DCBPS profit margins were most often above 20%, while the company’s enterprise focus was intended to improve gross and net margins.

Weigand said Q3 gross margin benefited from customer and product mix as well as lower tariffs, expedite charges and inventory-reserve charges. He said the margin mix for the following quarter would depend principally on the customers and products ultimately sold. Liang said memory, SSD, CPU and GPU shortages had affected the company, while Weigand said supply challenges were expected to continue but not at the level experienced in the preceding six months.

Liang said Super Micro was expanding production capacity in Taiwan, Malaysia and the United States, including a Silicon Valley DCBPS campus, and was on track to produce more than 6 thousand racks per month. Weigand said the company had established and begun using a $1.8 billion Taiwan revolving credit facility to support working-capital requirements.

Analysts asked about customer diversification, deferred revenue, margins and backlog. Weigand said revenue recognition depended on when customer data centers were ready and did not quantify backlog, while Liang said the company was adding large, mid-sized and smaller customers.

Guidance

Super Micro now expects Q1 FY2027 revenue of $14.5 billion to $15.5 billion, compared with its prior Q4 FY2026 revenue guide of $11.0 billion to $12.5 billion. The company now expects Q1 FY2027 gross margin of 10.4% to 10.8%, compared with its prior Q4 FY2026 gross-margin guide of 8.20% to 8.40%.