Supermicro shares rally on guidance after Q3 revenue falls short of estimates

Shares in Super Micro Computer Inc. surged more than 18% in after-hours trading today after the server maker reported a mixed fiscal 2026 third quarter, missing revenue estimates but topping earnings expectations and issuing strong guidance for the current quarter.

For the quarter that ended on March 31, Supermicro reported adjusted earnings per share of 84 cents, up from 31 cents per share in the same quarter of the previous fiscal year, on revenue of $10.2 billion, up 122.7% year-over-year. Analysts had been expecting earnings of 62 cents per share and revenue of $12.33 billion.

Revenue more than doubled from $4.6 billion in the same quarter a year ago but came in well below the $12.7 billion Supermicro reported in the previous quarter.

Supermicro saw net income climb to $483 million, up from $109 million in the year-ago quarter. Gross margin expanded to 9.9%, up from 9.6% a year earlier and a solid improvement from 6.3% in the previous quarter.

The company reported cash flow used in operations of $6.6 billion as it built out inventory and accounts receivable to support large customer commitments. Capital expenditures and investments totaled $97 million. Cash and cash equivalents stood at $1.3 billion as of March 31, against $8.8 billion in total bank debt and convertible notes.

“Supermicro’s transformation into a total datacenter infrastructure provider is accelerating,” said Charles Liang, founder, president and chief executive of Supermicro, in the company’s earnings release. “Our margin recovery and the rapid growth of our DCBBS business demonstrate that our business remains robust. With the addition of our new U.S. manufacturing facilities in Silicon Valley, we are exceptionally well-positioned to meet the massive demand for various AI and enterprise verticals.”

Supermicro markets its data center building block solutions, or DCBBS, as preconfigured rack-scale systems that bundle servers, networking, storage and liquid cooling for hyperscale artificial intelligence deployments. The company has been racing to expand U.S. production capacity as customers chase Nvidia Corp.-based AI clusters.

The result comes as Supermicro continues to work through the fallout of an ongoing board-led independent review of certain transactions tied to export-control issues, a matter the company said could affect prior-period results.

For its fiscal 2026 fourth quarter ending June 30, Supermicro expects net sales in the range of $11 billion to $12.5 billion, with adjusted earnings per share of 65 cents to 79 cents. The company also lifted its full-year fiscal 2026 outlook to net sales of $38.9 billion to $40.4 billion.

The guidance came in well above analysts’ expectations and was the key driver of the after-hours stock rally despite the headline revenue miss.

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