Super Micro earnings report sends shares higher after strong forecast
Super Micro shares rose 6.7% after hours after a profit beat, stronger margins and fiscal 2027 sales guidance.
By Frankie Delgado · News Reporter
2 min read
Super Micro earnings report day ended with shares up 6.7% in after-hours trading Tuesday, Aug. 11, after the server maker posted a profit beat, a sharp margin improvement and a fiscal first-quarter outlook above Wall Street expectations cited by MarketWatch.
The company reported unaudited results for the quarter ended June 30, closing out fiscal 2026. Sales came in at $11.1 billion, short of the $11.6 billion FactSet consensus reported by MarketWatch. But non-GAAP diluted earnings were $1.70 a share, ahead of the 92-cent expectation cited by the outlet.
On a GAAP basis, Super Micro reported fourth-quarter net income of $1.18 billion, or $1.62 per diluted share. Its GAAP gross margin was 17.5%, while its non-GAAP gross margin reached 17.6%, according to the company’s quarterly results.
What did Super Micro forecast for fiscal 2027?
For the fiscal first quarter ending Sept. 30, Super Micro projected revenue of $14.5 billion to $15.5 billion and non-GAAP earnings of $1.01 to $1.10 a share. MarketWatch said the midpoint of that sales forecast was above FactSet’s $11.8 billion consensus, while the profit range topped the cited 72-cent forecast.
The company also issued a full-year fiscal 2027 revenue target of $65 billion to $72 billion. That is company guidance, not a guarantee of future performance.
The standout figure in the completed quarter was margin. Super Micro’s 17.6% non-GAAP gross margin was above the 15% to 17% preliminary range it set in July and far ahead of its original 8.2% to 8.4% forecast. The company said a more favorable mix of customers and products drove the improvement; its non-GAAP calculation excluded $9 million in stock-based compensation expense.
Super Micro said it received more than $60 billion in new orders during the quarter and entered fiscal 2027 with record backlog. Investors should treat that number with care: in its July update, the company warned that some reported orders may not be firm commitments and can be cancelled or delayed.
Chief executive Charles Liang said Super Micro added several hundred enterprise and other customers over the past year. The company sells IT systems for areas including artificial intelligence, cloud computing, storage and 5G.
What risks did Super Micro disclose?
The company said its board is conducting an independent review of certain transactions connected with export-control issues. Super Micro cautioned that the review’s outcome could affect its forecasts, preliminary results and prior-period results.
It also flagged possible swings in quarterly performance, more concentrated customers as it pursues bigger deals, margin pressure, lower average selling prices and adverse economic conditions, including tariffs. The Tuesday after-hours move reported by MarketWatch reflects the immediate market reaction and does not indicate how the shares will trade later.
This story draws on original reporting from MarketWatch.