Super Micro Revenue Nearly Quadruples to $19.9 Billion as It Raises Full-Year Outlook

Revenue rose 298% from $5 billion a year earlier, Investing.com reported. That was well above the roughly $16.3 billion analysts had expected, and above the $18.5 billion to $19.5 billion range the company gave in its preliminary update on October 20. Adjusted earnings per share were $1.81, against a consensus estimate of $1.23.

Investing.com put adjusted gross margin at 12.8%, up from 9.5% a year earlier, while Rolling Out reported 12.7%. Both figures are above the 12.0% to 12.5% range Super Micro gave in its October update and well above the 10.4% to 10.8% it had originally guided for the quarter.

Guidance Moves Higher

For the fiscal second quarter, Super Micro guided revenue of $19.5 billion to $21.5 billion. Analysts had expected about $17.5 billion. The reports give slightly different ranges for adjusted earnings per share: Investing.com says $1.66 to $1.90, Rolling Out says $1.60 to $1.90. Both compare with a consensus of $1.14.

The company now expects fiscal 2027 revenue of $72 billion to $82 billion, up from its earlier range of $65 billion to $72 billion. The new midpoint of $77 billion is above the roughly $70.27 billion analysts had pencilled in, according to Investing.com.

"Supermicro's transformation into a Total AI and IT Datacenter Solution provider continues to accelerate," chief executive Charles Liang said, as quoted by Investing.com. Rolling Out, citing Reuters, said the sales growth reflects strong demand for servers built on Nvidia chips.

Cash and Customer Concentration

The headline numbers came with some strain. Investing.com reported that operations used $434 million of cash in the quarter. As of September 30, the company had $6.9 billion in cash and equivalents against $8.6 billion in bank debt and convertible notes. Assembling servers at this scale means buying large amounts of components before customers pay.

Analysts are also looking at who is doing the buying. On Bloomberg Television, Matt Bryson, managing director of hardware equity research at Wedbush Securities, said the outlook looked strong. The central question, he said, is whether AI-related spending will continue, given how much of Super Micro's business comes from neocloud customers, the specialist GPU cloud providers investors worry about most. Bank of America rates the stock underperform and has warned of pressure on margins, according to an earnings preview carried by Yahoo Finance.

Before the results, the stock closed at $31.46, Rolling Out reported. It is down about 34% over the past year and well below its 52-week high of $51.40. Super Micro appointed Mark Long, formerly of Western Digital, as chief financial officer last month. Also last month, a contractor pleaded guilty to charges linked to illegally exporting servers containing advanced Nvidia chips to China. The company has said its board is carrying out an independent review of certain transactions related to export controls, and that the outcome could affect its forecasts and results.

For Gulf readers, the results show how quickly orders for AI infrastructure are turning into revenue for the companies that assemble GPU servers. The question Bryson raised, about how long this spending will last, applies just as much to the sovereign and neocloud projects being planned across the region.