Supermicro: Fiscal 1Q26 Financial Results

Super Micro Computer, Inc., an IT solution provider for AI, cloud, storage, and 5G/Edge, announced unaudited financial results for its first quarter of fiscal year 2026 ended September 30, 2025.First Quarter Fiscal Year 2026 Highlights

Net sales of $5.0 billion versus $5.8 billion in Q4’25 and $5.9 billion in Q1’25
Gross margin of 9.3% versus 9.5% in Q4’25 and 13.1% in Q1’25
Net income of $168 million versus $195 million in Q4’25 and $424 million in Q1’25
Diluted net income per common share of $0.26 versus $0.31 in Q4’25 and $0.67 in Q1’25
Non-GAAP diluted net income per common share of $0.35 versus $0.73 in Q1’25
Cash flow used by operations for Q1’26 of $918 million and capital expenditures of $32 million

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“Powered by DCBBS, Supermicro is expanding/transforming into a leading AI and datacenter infrastructure company, delivering total solutions that simplify deployment, accelerate time-to-market, and reduce TCO,” said Charles Liang, founder, president and CEO, Supermicro. “With a rapidly expanding order book, including more than $13B in Blackwell Ultra orders, we expect at least $36 billion in revenue for fiscal year 2026.”

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The Non-GAAP gross margin for the first quarter of fiscal year 2026 was 9.5% with adjustments for stock-based compensation expenses of $7 million. The Non-GAAP diluted net income per common share for the first quarter of fiscal year 2026 was $0.35.

As of September 30, 2025, total cash and cash equivalents was $4.2 billion and total bank debt and convertible notes were $4.8 billion.

Business Outlook
The Company expects net sales of $10.0 billion to $11.0 billion for the second quarter of fiscal year 2026 ending December 31, 2025, GAAP net income per diluted share of $0.37 to $0.45 and non-GAAP net income per diluted share of $0.46 to $0.54. The Company’s projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 15.6% and 16.8%, respectively, and a fully diluted share count of 666 million shares for GAAP and fully diluted share count of 680 million shares for non-GAAP. The outlook for the second quarter of fiscal year 2026 GAAP net income per diluted share includes approximately $64 million in expected stock-based compensation, net of related tax effects of $18 million that are excluded from non-GAAP net income per diluted share.

For fiscal year 2026, the Company expects net sales of at least $36.0 billion.

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Comments

Supermicro reported solid quarterly revenue, though the results appear somewhat paradoxical given broader market trends and the intense AI-driven demand for infrastructure systems. Revenue reached $5 billion for the quarter, representing a 13% decline quarter over quarter and a 15% decrease year over year. Despite this short-term contraction, the previous fiscal year delivered very strong performance, which should still support a robust FY2026 by year end.

The company’s strategic emphasis on its Data Center Building Blocks approach—designed to address a wide spectrum of infrastructure components—has proven effective, as reflected in overall business momentum. As expected, NVIDIA-based solutions have been particularly successful for Supermicro, as they have been across the industry, significantly driving demand. In this context, Supermicro’s scale and execution capability are critical factors in its standing with the leading GPU supplier. At the same time, platforms built around alternative processing architectures have also performed well, contributing to a more balanced and resilient product portfolio.

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Momentum is clearly building, and what Charles Liang has described as SMCI 3.0 and 4.0 has been well received by the market. These new phases signal a maturation of the company’s strategy and operating model, aligning product innovation with large-scale infrastructure demand.

In parallel, Supermicro has significantly expanded its manufacturing capabilities, both through the addition of new facilities and the enlargement of existing sites, strengthening its ability to support growing volumes and increasingly complex system configurations.

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