Supermicro Sales Hit $19.9 Billion, Nearly 4x Last Year, As Gross Margin Falls To 12.7%

Super Micro Computer, which makes AI servers, storage and networking gear, reported unaudited first-quarter net sales of $19.9 billion, 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.

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.

Sources

• 8-K Filing — Super Micro Computer, Inc. (SMCI) — SEC EDGAR
• Exhibit exhibit991_20260930.htm — Super Micro Computer, Inc. 8-K exhibit — SEC EDGAR

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