Super Micro Computer delivered blowout fiscal fourth-quarter earnings Tuesday evening, obliterating analyst expectations and triggering a surge of more than 9% in after-hours trading.
Super Micro Computer, Inc., SMCI
The server manufacturer reported adjusted earnings per share of $1.70 on quarterly revenue of $11.1 billion. Wall Street had anticipated EPS of $0.92 and revenue of $11.6 billion. In the same quarter last year, SMCI delivered EPS of $0.41 on $5.8 billion in revenue.
Following the earnings release, shares traded at approximately $34.74 in the after-hours session, representing a gain of roughly $3.14 from the regular closing price of $31.60.
The company’s gross margin reached 17.6% during the quarter, surpassing its preliminary projection of 15% to 17% that was disclosed on July 21.
Chief Executive Officer Charles Liang attributed the performance to accelerating enterprise adoption, noting that the firm onboarded several hundred new clients over the past year while securing more than $60 billion in fresh orders.
“We booked record backlog entering fiscal 2027,” Liang stated in the earnings release.
The most striking element of the report was the first-quarter outlook. Super Micro projects Q1 revenue ranging from $14.5 billion to $15.5 billion. Wall Street analysts had forecasted $11.9 billion.
This guidance implies a year-over-year revenue increase of 189% to 209% compared to the $5.02 billion reported in the corresponding quarter last year.
For the complete fiscal year 2027, the company issued revenue guidance of $65 billion to $72 billion, substantially exceeding Wall Street’s $53 billion consensus estimate.
Super Micro continues to benefit from robust artificial intelligence infrastructure spending, as corporations aggressively expand their data center footprints. This elevated demand has also enhanced the company’s pricing leverage, enabling margin improvement from the depressed levels observed earlier this year.
Back in June, CEO Liang disclosed on X that Super Micro intends to collaborate on constructing a gigawatt-scale data center facility for SpaceX and xAI within a 12-month timeframe.
During that same month, the company revealed plans to secure up to $7 billion through equity-linked financing instruments to support its AI infrastructure expansion.
Despite the strong results, challenges remain. This past April, the Department of Justice brought charges against SMCI co-founder Yih-Shyan Liaw and two additional individuals for purportedly breaching U.S. export control regulations. Super Micro initiated an independent probe in response to the indictment.
The company itself was not charged in the matter.
Even with the impressive quarterly performance, SMCI shares have declined approximately 30% over the trailing 12 months. This contrasts sharply with competitors like HPE, which has gained roughly 160% during the same timeframe, and Dell Technologies, which has soared more than 230%.
Super Micro was not named as a defendant in the DOJ export controls case.
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