Super Micro Computer Earnings and AI Outlook
Super Micro Computer earnings showed >$60B in orders, record backlog and $65-$72B FY27 guidance that could prompt model re-rates for traders.
KEY TAKEAWAYS
- More than $60 billion in new orders and a record backlog underpin the bullish fiscal 2027 outlook.
- Management guided fiscal 2027 revenue to $65 billion-$72 billion, implying roughly 66%-84% year-over-year growth.
- Q4 revenue was $11.1 billion with non-GAAP gross margin 17.6% and non-GAAP EPS $1.70.
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Super Micro Computer Inc. (SMCI) reported on Aug. 11 that its fourth-quarter earnings showed stronger sales and wider margins. Management linked a bullish fiscal 2027 revenue outlook to AI server demand, supported by a record backlog.
Quarter Results and Margins
Net sales in the fourth fiscal quarter reached $11.1 billion, up from $10.2 billion in the prior quarter and $5.8 billion a year earlier. The company attributed the revenue growth to a shift toward higher-performance systems that support its optimistic outlook.
The non-GAAP gross margin was 17.6%, with a GAAP gross margin of 17.5%. GAAP net income totaled about $1.2 billion, with diluted net income per common share of $1.62 on a GAAP basis and $1.70 non-GAAP. Despite the wider quarterly profitability, management indicated near-term margin expectations would normalize.
Guidance and Order Backlog
Super Micro added several hundred enterprise and other customers over the past year, generated more than $60 billion in new orders, and entered fiscal 2027 with a record backlog. The company said its Total AI/IT Solutions strategy continues to deliver strong results.
Management guided fiscal 2027 revenue to a range of $65 billion to $72 billion, well above the market consensus of $52.5 billion. This outlook implies roughly 66% to 84% year-over-year growth from fiscal 2026. For the first quarter of fiscal 2027, revenue guidance is $14.5 billion to $15.5 billion, with non-GAAP gross margin expected between 10.4% and 10.8%, and non-GAAP diluted EPS of $1.01 to $1.10.
Transcript coverage described about 70% of the new orders as pure AI systems, with the remainder split between CPU-based AI and edge AI applications. Some fourth-quarter revenue recognition was delayed due to customer readiness, with expectations to recognize it in later quarters. This strong order flow and record backlog underpin the company’s optimistic revenue forecast and could prompt investors to re-rate growth models if order conversion holds.
