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# Supermicro Sales Hit $19.9 Billion, Nearly 4x Last Year, As Gross Margin Falls To 12.7%
- URL: https://www.bullished.co/supermicro-sales-hit-19-9-billion-nearly-4x-last-year-as-gross-margin-falls-to-12-7-b8ba6aa3/
- Published: 2026-11-03T21:53:39.000Z
- Updated: 2026-11-03T21:53:39.000Z
- Description: Net income reached $1,594 million, but the server maker kept less of each sales dollar than in the prior quarter.
- Author: Matteo Parrino
- Tags: Earnings, SMCI, Industry: Technology

[Super Micro Computer](https://www.bullished.co/tag/smci/), which makes AI servers, storage and networking gear, reported unaudited first-quarter [net sales of $19.9 billion](https://www.sec.gov/Archives/edgar/data/0001375365/000137536526000026/exhibit991%5F20260930.htm?ref=bullished.co), up from $5.0 billion a year earlier and $11.1 billion in the fourth quarter of fiscal 2026\. Gross margin fell to 12.7% from 17.5% in that prior quarter, the company said Tuesday in an [8-K](https://www.sec.gov/Archives/edgar/data/0001375365/000137536526000026/smci-20261103.htm?ref=bullished.co).

## Profit up, margin down

Gross margin was above the 9.3% of a year earlier. Net income was $1,594 million, against $1,178 million in the prior quarter and $168 million a year ago.

Diluted earnings per share were $1.75, versus $1.62 in the prior quarter and $0.26 a year earlier. On an adjusted basis, which excludes stock-based compensation, they were $1.81, against $0.35 a year earlier.

CEO Charles Liang said the company's shift into a "Total AI and IT Datacenter Solution provider continues to accelerate."

## Cash drained by receivables and inventory

Operations used $434 million in cash in the quarter. Receivables rose to $9.7 billion from $6.1 billion at June 30, and inventories to $15.1 billion from $12.9 billion.

Current deferred revenue stood at $4.3 billion at September 30, up from $1.6 billion at June 30\. Cash and equivalents were $6.9 billion, and bank debt and convertible notes totaled $8.6 billion.

Supermicro makes servers, storage and networking systems, including liquid-cooled rack-scale systems for AI, and builds most of them at its San Jose headquarters, according to its latest annual report.

## Second-quarter outlook

The company expects second-quarter sales, for the period ending December 31, of $19.5 billion to $21.5 billion, with adjusted earnings of $1.66 to $1.90 per diluted share. For fiscal 2027 it expects sales of $72.0 billion to $82.0 billion.

Management hosts its earnings call at 5:00 p.m. ET Tuesday. The board also declared a dividend of $0.875 per depositary share on its mandatory convertible preferred stock, payable December 1 to holders of record on November 15.

The company calls all figures preliminary, noting its auditor has not reviewed them.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — Super Micro Computer, Inc. (SMCI)](https://www.sec.gov/Archives/edgar/data/0001375365/000137536526000026/smci-20261103.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit exhibit991\_20260930.htm — Super Micro Computer, Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001375365/000137536526000026/exhibit991%5F20260930.htm?ref=bullished.co) — SEC EDGAR

### More on Super Micro Computer

- [Supermicro Estimates $18.5 Billion To $19.5 Billion In Quarterly Revenue, Against Guidance Of $14.5 Billion To $15.5 Billion](https://www.bullished.co/supermicro-estimates-18-5-billion-to-19-5-billion-in-quarterly-revenue-against-guidance-of-51068a28/)
- [Super Micro Names Mark Long CFO, Effective Immediately, With A $725,000 Salary](https://www.bullished.co/super-micro-names-mark-long-cfo-effective-immediately-with-a-725-000-salary-774dc4f1/)
- [Super Micro Names Ex-Intel Fellow Shesha Krishnapura Independent Director, As Judy Lin Retires From Board](https://www.bullished.co/super-micro-names-ex-intel-fellow-shesha-krishnapura-independent-director-as-judy-lin-80a40cfa/)

[All Super Micro Computer (SMCI) coverage →](https://www.bullished.co/tag/smci/)