Super Micro Computer reported first‑quarter FY2026 results that fell short of analyst expectations, with revenue of $5.0 billion and non‑GAAP earnings per share of $0.35, compared with consensus estimates ranging from $0.29 to $0.46. The company’s GAAP EPS was $0.26, below the $0.29 consensus. Revenue was 17.5%–22.3% below the $5.8 billion–$6.46 billion consensus range, reflecting a 15% year‑over‑year decline driven by customer delivery delays and the ramp‑up of new, higher‑cost AI platforms.
Revenue decline was largely driven by the company’s AI GPU platform segment, which accounts for more than 75% of total sales. While demand for AI infrastructure remained strong, the mix shift toward newer, higher‑cost platforms and inventory build‑out for large design wins reduced overall revenue growth. Customer delays in deploying upgraded rack platforms further dampened top‑line momentum, causing the 15% YoY drop.
Gross margin contracted to 9.3%–9.5% from 13.1% in Q1 FY2025, a compression of roughly 300 basis points. The decline is attributed to the higher cost of the new AI platforms, increased raw‑material costs, and a shift in the product mix toward lower‑margin items. Management noted that the margin squeeze is temporary and linked to the strategic investment in next‑generation hardware.
Guidance signals a rebound in the second quarter and a more optimistic full‑year outlook. Super Micro projected Q2 revenue of $10.0–$11.0 billion, well above the $8.05 billion consensus, while EPS guidance of $0.46–$0.54 fell short of the $0.61–$0.62 consensus. The company raised its full‑year revenue target to at least $36 billion from $33 billion, reflecting confidence in sustained AI demand and a growing order book of over $13 billion.
Management emphasized the strategic focus on AI infrastructure and the importance of inventory and pricing management. CEO Charles Liang highlighted the company’s evolution into a “leading AI platform and data‑center infrastructure total solution company” and cited a robust order book, including more than $13 billion in Blackwell Ultra orders. CFO David Weigand explained that the Q1 miss was due to a customer rack‑platform upgrade for a large design win and logistics delays that pushed shipments into Q2. He also noted that gross margins are expected to decline further in Q2 as the company ramps the new GB300 platform.
Investors reacted negatively to the earnings miss and mixed guidance. The stock fell 6.4% in regular trading and an additional 4.12% in after‑hours, with early post‑market trading showing a 9% drop. The decline reflects concerns over the revenue miss, margin compression, and the lower Q2 EPS guidance, despite the optimistic full‑year revenue outlook.
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