TLDR
- Super Micro delivered Q4 adjusted earnings per share of $1.70, significantly exceeding the $0.92 consensus estimate
- The company generated $11.1 billion in quarterly revenue with gross profit margins expanding to 17.6% from 9.6% year-over-year
- First-quarter revenue outlook of $14.5B-$15.5B substantially surpassed analyst projections of $11.8B
- Fiscal year 2027 revenue forecast of $65B-$72B dwarfs Street expectations of $53B
- Shares climbed more than 9% during extended trading hours following the announcement
Super Micro Computer delivered a fiscal fourth-quarter performance Tuesday that significantly exceeded analyst projections, propelling shares upward by more than 9% during after-hours trading sessions.
Super Micro Computer, Inc., SMCI
The server manufacturer reported adjusted earnings per share of $1.70 alongside quarterly revenue totaling $11.1 billion. Wall Street consensus had anticipated EPS of $0.92 with revenue projections of $11.6 billion. In the comparable period last year, Super Micro delivered EPS of $0.41 on $5.8 billion in revenue.
Following the earnings release, shares traded at approximately $34.74 in extended hours, representing a gain of roughly $3.14 above the regular trading session closing price of $31.60.
The company’s gross profit margin reached 17.6% during the quarter, surpassing Super Micro’s preliminary projection range of 15% to 17% that management communicated on July 21.
Chief Executive Officer Charles Liang attributed the performance to accelerating enterprise demand, noting the organization onboarded several hundred new clients over the past twelve months while securing more than $60 billion in fresh orders.
“We entered fiscal 2027 with record backlog,” Liang stated in the company’s earnings announcement.
Forward Outlook Dramatically Exceeds Projections
The most striking element of the report was the first-quarter forecast. Super Micro projects Q1 revenue ranging from $14.5 billion to $15.5 billion. The analyst community had anticipated approximately $11.9 billion.
This guidance implies a year-over-year revenue increase of 189% to 209% compared to the prior year’s first-quarter revenue of $5.02 billion.
For the complete fiscal year 2027, management issued revenue guidance between $65 billion and $72 billion, substantially exceeding the $53 billion Wall Street consensus estimate.
The organization has benefited from robust artificial intelligence infrastructure demand as enterprises accelerate investments in data center capabilities. This heightened demand has simultaneously enhanced Super Micro’s pricing leverage, enabling margin expansion from earlier lows experienced during the year.
During June, CEO Liang announced via X that the company intended to collaborate on constructing a gigawatt-scale data center facility for SpaceX and xAI within a twelve-month timeframe.
That same month, the server manufacturer revealed plans to secure up to $7 billion through equity-linked financing instruments to support its AI infrastructure expansion initiatives.
Legal Challenges Persist
However, challenges remain. The Department of Justice filed charges in April against SMCI co-founder Yih-Shyan Liaw along with two additional individuals for purportedly breaching U.S. export control regulations. Super Micro initiated an independent probe in response to the indictment.
The organization itself was not identified as a defendant in the legal proceedings.
Notwithstanding the impressive quarterly performance, SMCI shares remain approximately 30% lower over the trailing twelve-month period. This underperformance contrasts sharply with competitor HPE, which has gained around 160% during the same timeframe, and Dell Technologies, which has advanced more than 230%.
Super Micro was not designated as a defendant in the DOJ export controls matter.
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