Super Micro Computer beats on earnings as margins surge

Super Micro Computer Inc ( NASDAQ:SMCI ) reported a sharp increase in fourth quarter profit as margins improved, while revenue came in slightly below analysts’ expectations. The company's shares were up about 14% at about $36 on the report. For the quarter ended June 30, Supermicro reported adjusted earnings per share of $1.70, compared with the $0.92 expected by analysts. Revenue rose to $11.1 billion from $10.2 billion in the prior quarter and $5.8 billion a year earlier, but fell short of the $11.6 billion analyst estimate. Gross margin increased to 17.5% from 9.9% in the third quarter and 9.5% a year earlier. On a non-GAAP basis, gross margin was 17.6%. Net income rose to $1.18 billion, or $1.62 per diluted share, from $483 million, or 72 cents per share, in the prior quarter. Non-GAAP net income attributable to common stockholders was $1.70 per diluted share, compared with 41 cents a year earlier. Supermicro said it generated more than $60 billion in new orders during fiscal 2026 and entered fiscal 2027 with record backlog. The company also said it added several hundred enterprise and other customers over the past year. “Our Total AI/IT Solutions strategy continues to deliver strong results, we added several hundred enterprise and other customers in the past year, generated more than $60 billion in new orders, and booked record backlog entering fiscal 2027,” CEO Charles Liang said. “As demand accelerates, we are improving profitability through a richer enterprise customer mix and broader adoption of our optimized Data Center Building Block Solutions® (DCBBS) architecture.” For the full fiscal year, revenue increased to $39.1 billion from $22 billion a year earl...