TLDR
- SMCI jumps 18.65% overnight after strong AI server revenue growth
- Supermicro reports higher Q3 profit and improving gross margins
- AI infrastructure demand drives Supermicro overnight stock surge
- Supermicro forecasts up to $12.5B revenue for fiscal Q4 2026
- SMCI gains sharply as datacenter expansion boosts growth outlook
Super Micro Computer, Inc.(SMCI) shares surged in overnight trading after reporting stronger quarterly earnings and improved margins. The stock climbed to $33.02, gaining 18.65% after closing the regular session at $27.83. The sharp move followed rising demand for AI server infrastructure and expanding datacenter operations.
Super Micro Computer, Inc., SMCI
Supermicro Reports Higher Earnings and Margin Recovery
Supermicro posted third-quarter fiscal 2026 net sales of $10.2 billion. However, revenue declined from $12.7 billion reported during the previous quarter. The company still delivered major yearly growth compared to $4.6 billion recorded during fiscal 2025’s third quarter.
Net income reached $483 million during the quarter ended March 31, 2026. Meanwhile, quarterly profit improved from $401 million during the prior quarter. Earnings also increased sharply from $109 million reported one year earlier.
Diluted earnings per share reached $0.72 during the quarter. In comparison, diluted earnings stood at $0.60 during the previous quarter. The company also reported non-GAAP diluted earnings per share of $0.84, compared with $0.31 one year earlier.
AI Infrastructure Expansion Supports Business Momentum
Supermicro continued expanding its AI datacenter infrastructure business during the quarter. The company increased manufacturing capabilities through new facilities located in Silicon Valley. Consequently, the expansion strengthened production capacity for AI servers and enterprise computing systems.
Gross margin improved to 9.9% during the quarter from 6.3% in the previous quarter. Non-GAAP gross margin also reached 10.1%, improving from 9.7% reported during the same period last year. The stronger margins reflected improved operational efficiency and higher demand for AI-related products.
The company also increased its Datacenter Building Block Solutions business during the quarter. Rising enterprise demand supported stronger shipment activity across AI, cloud, and storage markets. The overnight stock rally reflected positive market reaction toward those developments.
Supermicro Forecasts Strong Fourth Quarter Revenue
Supermicro projected fourth-quarter fiscal 2026 net sales between $11.0 billion and $12.5 billion. The company also forecast GAAP diluted earnings per share between $0.53 and $0.67. Non-GAAP diluted earnings per share could range between $0.65 and $0.79.
The company expects stock-based compensation expenses of approximately $95 million during the upcoming quarter. Projected tax rates could reach 19.4% for GAAP results and 20.4% for non-GAAP results. Supermicro based guidance on diluted share counts exceeding 695 million shares.
Supermicro ended the quarter with $1.3 billion in cash and cash equivalents. However, total bank debt and convertible notes reached $8.8 billion during the same period. Despite higher debt levels, expanding AI infrastructure demand continued supporting the company’s growth outlook.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
