Key Takeaways
- Super Micro Computer delivered Q4 FY2026 adjusted EPS of $1.70, surpassing analyst estimates of $1.59 by 7%
- The company achieved a gross margin of 17.6%, approximately 892 basis points higher than Wall Street projections
- Quarterly revenue totaled $11.12 billion, falling just short of the $11.26 billion consensus amid timing delays on client projects
- Fiscal year 2027 revenue outlook of $65B to $72B significantly exceeded the Street’s $54.4B forecast
- Multiple Wall Street firms boosted price targets, with Bernstein moving to $42 and BofA lifting to $33 despite maintaining an Underperform stance
Shares of Super Micro Computer (SMCI) climbed 14% in Tuesday’s trading session following the release of fourth-quarter fiscal 2026 financial results that exceeded profitability forecasts and delivered forward revenue guidance far surpassing analyst projections.
The stock changed hands around the $36 level during market hours.
Super Micro Computer, Inc., SMCI
The server technology company recorded adjusted earnings of $1.70 per share for the fourth quarter of fiscal 2026, representing a 7% beat versus the Street’s $1.59 consensus. Quarterly revenue climbed to $11.12 billion, marking a 9% sequential increase, though landing marginally below the $11.26 billion Wall Street forecast as certain large-scale artificial intelligence customer deployments experienced timing shifts.
These project postponements stemmed from customer infrastructure challenges involving power availability, thermal management systems, and networking capabilities, resulting in revenue recognition being pushed into the first quarter of fiscal 2027.
The metric that truly captured investor enthusiasm was profitability expansion. SMCI achieved a quarterly gross margin of 17.6%, representing an approximately 892 basis point outperformance relative to analyst models.
This marks a dramatic improvement from the company’s trailing twelve-month gross margin figure hovering around 10.8%.
Company leadership attributed roughly 75% of the quarter-over-quarter margin enhancement to an improved customer profile and product portfolio, including increased CPU server shipments and Enterprise and Channel customers representing 50% of total revenue. The remaining 25% of the improvement resulted from reduced tariff expenses and lower inventory reserve requirements.
Artificial intelligence-focused solutions represented approximately 60% of fourth-quarter revenue, which is below historical patterns. However, management indicated that the current order backlog points to AI-related products comprising more than 80% of future revenue streams.
Forward Outlook Substantially Exceeds Projections
Looking ahead to fiscal 2027, SMCI provided revenue guidance spanning $65 billion to $72 billion. This range sits considerably above the Wall Street consensus forecast of $54.4 billion previously in place.
For the first quarter of fiscal 2027 specifically, management guided to revenue between $14.5 billion and $15.5 billion compared with analyst consensus of $12 billion. First-quarter EPS guidance of $1.01 to $1.10 similarly exceeded the Street’s $0.74 estimate.
Management also disclosed receiving $60 billion in fresh orders throughout the June quarter.
Wall Street Analyst Response
Bernstein elevated its SMCI price target from $37 to $42 while maintaining a Market Perform rating. The research firm increased its fiscal 2027 and fiscal 2028 earnings estimates to $3.99 and $3.53, respectively, up from prior forecasts of $2.80 and $3.25.
BofA Securities lifted its price objective from $28 to $33 while retaining an Underperform rating. The investment bank expressed skepticism about the sustainability of fourth-quarter margin performance, highlighting ongoing headwinds from competitive dynamics, component pricing pressures, and expanding research and development expenses.
Rosenblatt Securities increased its target to $51 accompanied by a Buy rating. Needham maintained its Buy recommendation with a $46 price target. Mizuho established a $35 target alongside a Neutral rating.
BofA analysts additionally highlighted that SMCI’s first-quarter gross margin guidance points to just 10.6% at the midpoint, representing a 700 basis point sequential decline from the fourth quarter.
According to InvestingPro data, five analysts have revised their earnings projections upward for the coming period.
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