Super Micro Computer, Inc.
SMCI · NASDAQ-GS
Next quarter
Expected to report Feb 2, 2027 — estimated from last year’s reporting date.
Consensus is $1.66 EPS for Dec 2026 across 6 estimates, ranging $1.58 to $1.76.
SMCI Sep 2026
- 63.46%
- -5.70%
- $1.04
- $1.70
- —
- $19.95B
Reported results
- $19.95B
- 12.74%
- $2.06B
- 10.35%
- $1.59B
- $1.75
Highlights
- Record sales: Q1 FY2027 net sales were $19.95 billion, up 298% year over year from $5.02 billion and 80% sequentially from $11.1 billion.
- EPS beat: GAAP diluted EPS was $1.75 versus consensus of $1.04; the supplied estimate data report the result as $1.70 and a 63.46% surprise.
- Net income: Net income reached $1.59 billion, up from $168 million a year earlier and $1.18 billion in Q4 FY2026.
- Gross margin: GAAP gross margin was 12.7%, up from 9.3% a year earlier but down from 17.5% in Q4; non-GAAP gross margin was 12.8%.
- Operating profit: Operating income rose to $2.06 billion from $182 million a year earlier; adjusted EBITDA was $2.23 billion, or 11.2% of sales.
- Cash conversion: Operations used $434 million of cash, as a $3.56 billion increase in receivables and $2.48 billion increase in inventory outweighed cash generated by higher deferred revenue.
- Q2 outlook: Supermicro expects sales of $19.5 billion to $21.5 billion and GAAP diluted EPS of $1.59 to $1.83 for the quarter ending December 31, 2026.
- FY2027 outlook: The company expects full-year sales of $72 billion to $82 billion; its Q1 financial results are preliminary and unaudited.
Analysis
Supermicro delivered a sharp acceleration in its first quarter of fiscal 2027: sales of $19.95 billion were nearly four times the $5.02 billion reported a year earlier and 80% above Q4 FY2026’s $11.1 billion. GAAP diluted EPS was $1.75, versus consensus of $1.04; the supplied estimate data use $1.70 as reported EPS and calculate a 63.46% beat. Net income rose to $1.59 billion from $168 million a year ago and $1.18 billion in the prior quarter. These preliminary results establish a record revenue and earnings quarter, though the release provides no revenue-consensus comparison.
Margins and cash conversion temper the scale of the growth. Gross margin improved to 12.7% from 9.3% year over year, but fell from 17.5% sequentially; non-GAAP gross margin was 12.8%. Operating cash flow was negative $434 million as receivables and inventory absorbed cash, despite a sizable increase in deferred revenue. For Q2, management guided to sales of $19.5 billion to $21.5 billion and GAAP diluted EPS of $1.59 to $1.83, and forecast FY2027 sales of $72 billion to $82 billion. The release cautions that Q1 figures remain subject to financial close and review.
Record sales and earnings
- Sales: Revenue was $19.95 billion, compared with $5.02 billion in Q1 FY2026 and $11.1 billion in Q4 FY2026. The year-over-year increase was about 298%, and sequential growth was about 80%.
- Profit: Net income was $1.59 billion, versus $168 million a year earlier and $1.18 billion in the prior quarter. Operating income reached $2.06 billion, compared with $182 million a year earlier.
- EPS: GAAP diluted EPS was $1.75, versus $0.26 a year earlier and $1.62 in Q4. Against the supplied $1.04 consensus, the reported estimate data give a 63.46% surprise using $1.70; the company release reports $1.75.
Gross margin
- Sequential comparison: GAAP gross margin was 12.7%, down 4.8 percentage points from 17.5% in Q4 FY2026 despite much higher sales.
- Year-over-year comparison: Margin improved from 9.3% in Q1 FY2026. Non-GAAP gross margin, which excludes stock-based compensation, was 12.8%, versus 9.5% a year earlier.
- Profitability: Adjusted EBITDA was $2.23 billion, equal to 11.2% of sales, compared with $335 million and 6.7% of sales a year earlier.
Cash and working capital
- Operating cash flow: The company used $434 million of cash in operations, compared with $918 million used a year earlier, despite reporting $1.59 billion of net income.
- Working capital: Receivables consumed $3.56 billion and inventory consumed $2.48 billion of cash. A $3.05 billion increase in deferred revenue and cash generated by other operating liabilities partly offset those uses.
- Balance sheet: Cash and cash equivalents were $6.9 billion at September 30, while bank debt and convertible notes totaled $8.6 billion. Capital expenditures and investments were $47 million.
Sales outlook
- Q2 FY2027: Management expects net sales of $19.5 billion to $21.5 billion and GAAP diluted EPS of $1.59 to $1.83 for the quarter ending December 31, 2026. Non-GAAP diluted EPS guidance is $1.66 to $1.90.
- Full year: The company expects FY2027 sales of $72 billion to $82 billion.
- Share and tax assumptions: Q2 GAAP EPS guidance assumes 753 million diluted shares and a 21.2% tax rate; non-GAAP guidance assumes 769 million shares and a 21.1% tax rate.
Preliminary results
The release describes the Q1 financial information as preliminary and unaudited because quarter-end closing procedures were not complete. Management says final results may differ materially after its review and the completion of financial close processes.
