Super Micro profit surges to $1.17B on AI server demand

Super Micro Computer reported fiscal fourth-quarter profit of $1.17 billion, up from $195.2 million a year earlier, as sales nearly doubled on AI server demand.

"Significantly stronger gross margins highlight the pre-announcement," analysts at Wedbush wrote in a note, citing the company's preliminary margin range of 15% to 17%.

Revenue reached about $11.55 billion for the quarter ended June 30, near the low end of the company's $11 billion to $12.5 billion guidance and roughly double the $5.76 billion reported a year earlier. Earnings of $1.62 a share compared with 31 cents in the year-ago quarter, above the adjusted consensus of about 94 cents. New orders exceeded $60 billion during the quarter, pushing backlog to a record, while full-year sales reached about $39.49 billion, up from $21.97 billion in fiscal 2025. The roughly 101 percent year-over-year growth reflects the pace of AI infrastructure spending, with Nvidia partner Super Micro among the main beneficiaries of hyperscaler demand.

Metric	Actual	Consensus	Beat/Miss
Revenue	~$11.55B	~$11.55B	In line
EPS	$1.62	~$0.94	+$0.68
Gross margin	15%-17%	8.2%-8.4% guide	~2x

The gross margin roughly doubled the 8.2 percent to 8.4 percent the company had guided for, a swing management attributed to a favorable customer and product mix. The figure breaks from a year in which margins bounced between 6.3 percent and 9.9 percent, leaving investors to judge whether the quarter was a reset or a one-off. The company cautioned that some of the $60 billion in new orders may not be firm commitments and could face cancellation or delays.

Shares trade in the low $30s, down about 45 percent from their 52-week high, at roughly nine times expected forward earnings. Just one of five analysts tracked by Visible Alpha rates the stock a buy, with a mean target near $34. The company's board is conducting an independent review tied to alleged export-control issues, and Super Micro said the outcome could affect its forecasts. Growth has also been expensive to fund: the company used $6.6 billion of cash in operations in the fiscal third quarter and raised about $7 billion in June through common stock and mandatory-convertible preferred offerings.

The margin jump is the number investors will test against the fiscal 2027 outlook due on the earnings call at 5 p.m. ET. A guide built on mid-teens margins would mark a reset in the business's economics; a return to single digits would suggest the quarter was a one-off.

This article is for informational purposes only and does not constitute investment advice.