Key Highlights
- 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 reaching 17.6%, nearly double the 9.6% recorded last year
- First-quarter revenue outlook of $14.5B to $15.5B substantially surpassed analyst projections of $11.8B
- Fiscal year 2027 revenue forecast of $65B to $72B significantly outpaces Wall Street’s $53B consensus
- Shares of SMCI climbed more than 9% during extended trading hours
Super Micro Computer delivered fiscal fourth-quarter financial results on Tuesday that significantly exceeded analyst projections, driving shares higher by over 9% in extended trading.
Super Micro Computer, Inc., SMCI
The company announced adjusted earnings of $1.70 per share alongside $11.1 billion in quarterly revenue. Wall Street analysts had forecast earnings of $0.92 per share on $11.6 billion in sales. These figures represent substantial growth compared to the prior-year period, which saw $0.41 EPS and $5.8 billion in revenue.
During after-hours trading, SMCI shares climbed to approximately $34.74, representing a gain of roughly $3.14 from the regular session closing price of $31.60.
The company’s gross profit margin reached 17.6% for the period, exceeding its previously issued preliminary range of 15% to 17% from its July 21 update.
Chief Executive Officer Charles Liang attributed the strong performance to accelerating enterprise adoption, noting that the company onboarded several hundred new clients over the past year while securing more than $60 billion worth of new orders.
“We entered fiscal 2027 with record backlog levels,” 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, substantially above the $11.9 billion consensus among analysts.
This outlook suggests year-over-year growth of 189% to 209% compared to the $5.02 billion recorded in the comparable quarter last year.
For the complete fiscal year 2027, management provided revenue guidance of $65 billion to $72 billion, significantly exceeding Wall Street’s $53 billion expectation.
The company continues to benefit from robust artificial intelligence infrastructure investment, as enterprises accelerate data center capacity expansion. This heightened demand has also enhanced Super Micro’s pricing leverage, contributing to margin improvement from earlier lows this year.
Back in June, CEO Liang announced on X that the company intended to collaborate on constructing a gigawatt-scale data center facility for SpaceX and xAI within a twelve-month timeframe.
During that same month, Super Micro 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. This past April, the Department of Justice brought criminal charges against SMCI co-founder Yih-Shyan Liaw alongside two additional individuals for purported violations of United States export control regulations. Super Micro initiated an independent review process following the indictment.
The company itself was not identified as a defendant in the legal proceedings.
Notwithstanding the impressive quarterly performance, SMCI stock continues to trade approximately 30% below its level from twelve months ago. This contrasts unfavorably with competitors including HPE, which has gained around 160% during the same timeframe, and Dell Technologies, which has advanced more than 230%.
Super Micro was not named as a defendant in the DOJ export controls case.
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