Super Micro Computer Q4 Earnings Call Highlights

Record growth and strong outlook: Fiscal 2026 revenue reached $39.1 billion, up 78% year over year, while Supermicro forecast fiscal 2027 revenue of $65 billion to $72 billion after securing more than $60 billion in fourth-quarter orders and entering the year with a record backlog. Fourth-quarter results exceeded guidance: Revenue rose 93% year over year to $11.1 billion, while non-GAAP gross margin climbed to 17.6% and non-GAAP EPS reached $1.70. Some customer projects were delayed by power, cooling and networking readiness issues, but management expects the revenue to shift into later quarters. Expansion and profitability focus: Supermicro is transitioning toward integrated data-center building-block solutions, expanding manufacturing capacity and raising $5.6 billion through equity offerings to fund working capital. Management expects AI-related products to exceed 80% of future revenue while pursuing a better mix of higher-margin enterprise, storage, CPU and services offerings.

Super Micro Computer NASDAQ: SMCI reported record fiscal 2026 revenue of $39.1 billion, up 78% from $22 billion in fiscal 2025, as demand for artificial intelligence infrastructure continued to drive growth. The company also projected fiscal 2027 revenue of $65 billion to $72 billion and said it entered the new year with a record backlog after receiving more than $60 billion in new orders during the fourth quarter. Founder, President, Chief Executive Officer and Chairman Charles Liang said the company is expanding beyond its historical role as a U.S.-based server manufacturer into a provider of total data-center building-block solutions, or DCBBS. Those offerings combine compute, storage, direct liquid cooling, networking, management software and lifecycle services.

The demand for our AI IT solutions is even stronger than ever before, Liang said, describing the company as a one-stop supplier for customers building data centers and AI factories.

For the fiscal fourth quarter, Supermicro reported revenue of $11.1 billion, up 93% from a year earlier and 9% sequentially. Revenue was near the low end of the company’s $11 billion to $12.5 billion outlook because of customer delays related to power availability, cooling and networking readiness, according to Chief Financial Officer David Weigand. Weigand said the delayed revenue is expected to be recognized in later quarters. Liang characterized the issue as a timing matter rather than a change in demand.

Fourth-quarter non-GAAP gross margin rose to 17.6%, from 10.1% in the prior quarter and well above the company’s 8.2% to 8.4% guidance. Non-GAAP diluted earnings per share were $1.70, compared with the forecast range of $0.65 to $0.79. GAAP diluted EPS was $1.62. Weigand said approximately 75% of the sequential gross-margin improvement resulted from a better-than-expected customer and product mix, including the deferral of several contracts into fiscal 2027. Lower tariff costs and lower inventory reserves accounted for the remaining improvement. The company said it did not record a tariff rebate during the quarter, though it is pursuing refunds. Weigand described the lower tariff and excess-and-obsolete inventory costs as potentially nonrecurring benefits. Fiscal 2026 non-GAAP diluted EPS rose 76% to $3.63. Fiscal 2026 GAAP diluted EPS was $3.26, compared with $1.68 in fiscal 2025. Fiscal 2026 non-GAAP operating margin increased to 8.1% from 7.1% a year earlier. Fiscal 2026 non-GAAP ...