TLDR
- Super Micro Computer reported Q1 revenue of $5 billion, missing estimates by $800 million and down 15% year-over-year, with adjusted EPS of $0.35 versus $0.39 expected.
- The stock dropped 9% in early trading Wednesday following the earnings miss, despite having already pre-announced the weak revenue figure last month.
- The company issued Q2 revenue guidance of $10-11 billion, crushing analyst expectations of $8.05 billion, driven by anticipated strong demand for new Nvidia AI systems.
- Super Micro raised its full fiscal year 2026 revenue target to at least $36 billion from $33 billion, supported by a $13 billion order book tied to Nvidia’s Blackwell Ultra platform.
- The company did not provide full-year EPS guidance, leaving investors uncertain about profitability despite the raised revenue outlook.
Super Micro Computer shares fell sharply on Wednesday morning after the company reported first-quarter results that fell short of Wall Street expectations. The stock dropped 9% in early trading despite a forward-looking revenue forecast that beat estimates by a wide margin.
The San Jose-based server and storage company posted revenue of $5 billion for the quarter ending September 30. That figure came in roughly $800 million below analyst consensus estimates. Revenue declined 15% compared to the same period last year.
The miss wasn’t entirely unexpected. Super Micro had already provided preliminary revenue numbers last month when it pre-announced weaker-than-expected results.
Adjusted earnings per share reached $0.35 for the quarter. Analysts had been expecting $0.39. GAAP earnings per share came in at $0.26, while gross margin slipped slightly to 9.5%.
The disappointing quarterly performance prompted the immediate stock decline. But the company’s forward guidance painted a very different picture.
Revenue Forecast Crushes Expectations
Super Micro issued second-quarter revenue guidance between $10 billion and $11 billion. That range far exceeded the $8.05 billion that analysts had been projecting. The company expects adjusted EPS for the current quarter between $0.46 and $0.54, though this came in below the $0.61 analyst estimate.
The dramatic revenue jump reflects anticipated demand for new AI-related products. Super Micro specifically cited strong orders for new Nvidia HGX B300 and GB300 NVL72 systems.
CEO Charles Liang also raised the company’s full fiscal year 2026 revenue target. The new outlook calls for at least $36 billion in revenue. That’s up from the prior $33 billion target and above the current analyst consensus of $32.25 billion.
Order Book Backs Up Optimistic Forecast
The company pointed to concrete factors supporting its bullish outlook. Super Micro disclosed a $13 billion order book tied to Nvidia’s Blackwell Ultra platform. This substantial backlog provides visibility into future revenue.
The AI hardware market continues to drive demand for Super Micro’s products. The company has positioned itself as a key supplier in the fast-growing server market that supports AI workloads.
Super Micro stock has gained 56% to 58% so far this year. That performance outpaces the Nasdaq Composite index, which has risen 21% over the same period.
However, the company left out one key piece of information that investors wanted. Super Micro did not provide earnings per share guidance for the full fiscal year. Revenue guidance alone doesn’t tell the complete profitability story.
The lack of full-year EPS guidance created uncertainty despite the raised revenue targets. Investors couldn’t assess whether the company would maintain or improve profit margins as it scales up production.
The mixed earnings report highlights Super Micro’s current position. Near-term execution fell short of expectations. But the company’s pipeline of AI-related orders points to strong future demand tied to its relationship with Nvidia’s latest hardware platforms.
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