Super Micro Computer (NASDAQ:SMCI) Announces Quarterly Earnings Results, Beats Expectations By $0.78 EPS

Super Micro Computer (NASDAQ:SMCI) issued its quarterly earnings results on Tuesday. The company reported $1.70 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.92 by $0.78, FiscalAI reports. The company had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. Super Micro Computer had a return on equity of 31.02% and a net margin of 5.71%.Super Micro Computer’s revenue was up 93.2% on a year-over-year basis. During the same period last year, the company earned $0.31 earnings per share. Super Micro Computer updated its Q1 2027 guidance to 1.010-1.100 EPS.

Here are the key takeaways from Super Micro Computer’s conference call:

• AI-driven growth accelerated: Fiscal 2026 revenue nearly doubled to $39.1 billion, while Supermicro received more than $60 billion in new Q4 orders and entered fiscal 2027 with record backlog.
• Profitability improved sharply in Q4. Non-GAAP gross margin rose to 17.6% from 10.1% in Q3, and non-GAAP EPS reached $1.70, well above guidance, driven mainly by favorable customer and product mix.
• Management forecast fiscal 2027 revenue of $65 billion to $72 billion and Q1 revenue of $14.5 billion to $15.5 billion, supported by continued AI demand, enterprise expansion, and growing data-center building-block solutions.
• Q4 revenue was near the low end of guidance because customers delayed deployments amid power, cooling, networking, and data-center readiness constraints. Inventory increased to $12.9 billion, the cash conversion cycle expanded to 149 days, and fiscal 2026 operating cash flow was negative $6.8 billion.
• The company is diversifying toward enterprise CPU servers, storage, IoT, agentic AI, and software/services to improve margins, but management acknowledged that Q4’s unusually strong margin benefited from one-time factors, including lower tariffs and inventory reserves.

Super Micro Computer Trading Up 19.0%

NASDAQ SMCI opened at $37.61 on Thursday. The stock has a market cap of $22.62 billion, a PE ratio of 11.75, a PEG ratio of 0.37 and a beta of 1.95. Super Micro Computer has a 12 month low of $19.48 and a 12 month high of $58.78. The company’s 50-day moving average price is $30.39 and its 200-day moving average price is $30.48. The company has a current ratio of 2.66, a quick ratio of 1.29 and a debt-to-equity ratio of 0.88.

Hedge Funds Weigh In On Super Micro Computer

Hedge funds have recently added to or reduced their stakes in the stock. Arax Advisory Partners purchased a new position in Super Micro Computer during the 4th quarter worth $28,000. Peterson Wealth Services lifted its holdings in shares of Super Micro Computer by 273.6% in the 4th quarter. Peterson Wealth Services now owns 1,274 shares of the company’s stock worth $37,000 after buying an additional 933 shares during the period. Advisors Asset Management Inc. bought a new position in shares of Super Micro Computer during the 1st quarter worth $39,000. iSAM Funds UK Ltd purchased a new position in shares of Super Micro Computer during the third quarter valued at $63,000. Finally, MUFG Securities EMEA plc bought a new stake in shares of Super Micro Computer in the second quarter valued at about $74,000. 84.06% of the stock is currently owned by institutional investors.

Key Super Micro Computer News

Here are the key news stories impacting Super Micro Computer this week:

• Positive Sentiment: Strong fiscal 2027 outlook: Supermicro forecast fiscal 2027 revenue of $65 billion to $72 billion, well above the roughly $53.1 billion analyst consensus. First-quarter revenue guidance of $14.5 billion to $15.5 billion also exceeded expectations, reinforcing confidence in sustained AI infrastructure spending. Super Micro forecasts upbeat annual revenue
• Positive Sentiment: Large earnings beat and margin rebound: Fiscal fourth-quarter adjusted EPS was $1.70, versus approximately $0.92 expected, while revenue rose 93.2% year over year to $11.12 billion. Gross margin reached about 17.5% to 17.6%, significantly above prior guidance, and quarterly profit surged. Super Micro Stock Surges as Earnings Smash Expectations and Revive AI Hope
• Positive Sentiment: Record demand and customer diversification: The company reported more than $60 billion in new orders and a book-to-bill ratio above 5x. Growth in enterprise and channel sales suggests Supermicro is expanding beyond lower-margin hyperscaler business, potentially improving profitability. Super Micro Computer’s $60 Billion Signal Changes the AI Story
• Positive Sentiment: Wall Street turned more constructive: Rosenblatt raised its price target to $51 and Needham maintained a Buy rating with a $46 target. Citi and Wedbush also lifted targets, though both retained Neutral ratings. The outlook additionally provided a favorable read-through for AI suppliers and partners including Nvidia, Dell and memory makers.
• Neutral Sentiment: Revenue missed the quarterly estimate: Fourth-quarter sales of $11.1 billion were below expectations of roughly $11.55 billion to $11.60 billion, reportedly because infrastructure-readiness delays pushed some customer deployments into later periods. Super Micro Guided Fiscal 2027 Revenue $16 Billion Above Wall Street and Missed the Quarter Anyway
• Negative Sentiment: Margin and dilution risks remain: Management’s first-quarter gross-margin outlook falls to approximately 10.4% to 10.8%, and higher share count following a roughly $7 billion equity and convertible financing could pressure per-share earnings. Investors also remain concerned about inventory exposure if large orders are delayed or canceled and about the lack of a clear free-cash-flow commitment.

Analysts Set New Price Targets

Several brokerages have recently weighed in on SMCI. Weiss Ratings reissued a “hold (c)” rating on shares of Super Micro Computer in a research note on Wednesday, June 24th. Rosenblatt Securities lifted their price target on shares of Super Micro Computer from $45.00 to $51.00 and gave the stock a “buy” rating in a research note on Wednesday. Stifel Nicolaus set a $42.00 price target on shares of Super Micro Computer in a report on Wednesday. The Goldman Sachs Group reissued a “sell” rating and issued a $34.00 price objective (up from $30.00) on shares of Super Micro Computer in a research report on Wednesday. Finally, Needham & Company LLC restated a “buy” rating and set a $46.00 target price on shares of Super Micro Computer in a research report on Wednesday. Four research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $41.80.

About Super Micro Computer

Super Micro Computer, Inc (Supermicro) is a technology company that designs, develops and manufactures high-performance server, storage and networking solutions for enterprise, cloud, data center, high performance computing (HPC) and edge computing customers. The company’s product portfolio includes rackmount and blade servers, storage subsystems, motherboards, chassis, power supplies and networking components, with an emphasis on high-density, energy-efficient configurations and platforms optimized for GPU-accelerated workloads and artificial intelligence applications.

Headquartered in San Jose, California, Supermicro combines in-house engineering with a global manufacturing and distribution footprint to deliver configurable, application-specific systems.