Large design wins drive data-center server sales
Net sales growth was driven by fulfillment and shipment of orders supporting customers' data center deployment, including large design wins from a few customers.
Source: 10-K Item 7 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Fiscal 2026 was defined by explosive data-center demand that nearly doubled Super Micro's business, as management attributed the growth to large design wins from a few customers and strong Hyper Server and GPU & Super Rack billings, with GPU & Super Rack revenue up 83.4%. The tension is that the expansion came with compressed unit economics and a working-capital drain: gross margin declined 0.3 percentage point on competitive pricing and mix, and operating cash flow swung to a $6.8B outflow. The company's auditor expressed an unqualified opinion on the financial statements but an adverse opinion on internal control over financial reporting, a contrast investors should note.
Revenue
$39.06B
+77.79% YoY
EPS (Diluted)
$3.26
+94.05% YoY
Gross Margin
10.8%
-0.2 pts YoY
Operating Income
$2.77B
+121.11% YoY
Audit Opinion: Unqualified opinion on consolidated financial statements; adverse opinion on internal control over financial reporting(Report of Independent Registered Public Accounting Firm)
Source: SEC XBRL
Super Micro Computer (SMCI) reported FY2026 revenue of $39.06B, up 77.8% year over year. Operating margin was 7.1%, up 1.4 points from 5.7% a year earlier. Operating cash flow was negative $6.81B.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.70 | 0.98 | Beat +74.1% |
| Mar 2026 | 0.84 | 0.63 | Beat +32.3% |
| Dec 2025 | 0.69 | 0.50 | Beat +38.7% |
| Sep 2025 | 0.35 | 0.41 | Miss -14.9% |
Reported EPS of $1.70 versus the $0.98 analyst consensus — a +74.1% beat for Jun 2026.
Compiled by AI from 10-K Item 7 of this filing
Net sales growth was driven by fulfillment and shipment of orders supporting customers' data center deployment, including large design wins from a few customers.
Source: 10-K Item 7 MD&A
Server and storage system net sales rose 77.8%, with Hyper Servers, GPU & Super Racks up 83.4%, primarily related to GB200 and GB300 systems, including liquid-cooled and air-cooled servers.
Source: 10-K Item 7 MD&A
Gross margin decreased to 10.8% from 11.1% primarily due to a strategy of offering competitive pricing to gain market share, change in product and customer mix, and higher manufacturing related expenses.
Source: 10-K Item 7 MD&A
Cost of sales growth included a $237.7M, or 228.3%, increase in tariff expenses driven by new trade policies and a $312.9M, or 24.9%, decrease in vendor rebates, partially offset by a $43.8M decrease in inventory write-down adjustments.
Source: 10-K Item 7 MD&A
Services and software net sales increased from $330.5M in fiscal 2025 to $538.3M in fiscal 2026, contributing to overall growth, though product revenue remained the primary driver.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 3 high, 2 medium, 0 low
Sales are concentrated in a few large customers, with one customer accounting for 10% or more of net sales in fiscal 2026 and four customers in fiscal 2025. Losing any key customer or experiencing a significant reduction in sales to them could substantially decrease revenue and harm financial condition.
Source: 10-K Item 1A Risk Factors
The company was delinquent in certain SEC reporting obligations in prior fiscal years and previously identified material weaknesses in internal control over financial reporting. If not remediated, these issues could affect timely and accurate reporting and increase the risk of SEC enforcement actions.
Source: 10-K Item 1A Risk Factors
Reliance on Ablecom and Compuware, related-party contract manufacturers for chassis and certain components, creates conflicts of interest and limited-source manufacturing risks. Disruption to these relationships could adversely affect operations and product delivery.
Source: 10-K Item 1A Risk Factors
Prices and availability of GPUs, CPUs, memory, SSDs, and other core components are volatile, and the company often buys on a purchase order basis without long-term contracts. Shortages or delays, especially amid AI demand, could impair its ability to meet customer orders and hurt revenue.
Source: 10-K Item 1A Risk Factors
A significant portion of recent success has been driven by the AI industry, which involves rapid change and uncertainty. If AI-related demand slows or the company fails to keep pace with evolving technology, revenue and profitability could be materially affected.
Source: 10-K Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 39.06 $B | 21.97 $B | +77.79% |
Cost of Revenue $B | 34.84 $B | 19.54 $B | +78.26% |
Gross Profit $B | 4.23 $B | 2.43 $B | +73.97% |
Operating Income $B | 2.77 $B | 1.25 $B | +121.11% |
Net Income $B | 2.23 $B | 1.05 $B | +112.66% |
EPS (Basic) $ | 3.65 $ | 1.77 $ | +106.21% |
EPS (Diluted) $ | 3.26 $ | 1.68 $ | +94.05% |
R&D Expense $M | 771.23 $M | 636.55 $M | +21.16% |
Answers draw on this SEC filing and the data on this page
SMCI reported a significant increase in revenue and net income for Q3 FY2026, driven by strong operational performance and effective cost management, despite a substantial increase in liabilities and negative operating cash flow.
SMCI reported a significant revenue increase of 123.4% in Q2 FY2026, driven by strong sales growth, despite facing pressure on gross margins.
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