Supermicro Earnings Rise on AI Demand
Supermicro earnings beat its preliminary range and raised fiscal 2027 guidance, a combo that should refocus traders on growth versus margin and cash risk.
KEY TAKEAWAYS
- Finalized revenue reached $19.9B, exceeding the company's preliminary range.
- Fiscal 2027 revenue guidance was raised to $72.0B-$82.0B, tied to AI server demand.
- SambaNova collaboration planned initial deployment of 10,000 SN50 RDUs in inference racks.
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Super Micro Computer Inc. (SMCI) reported fiscal first-quarter results on Nov. 3, 2026, with finalized revenue exceeding its preliminary range. The company raised its full-year revenue outlook, citing strong demand for AI-capable servers and a strategic collaboration with SambaNova.
Quarter Results and Fiscal 2027 Guidance
Net sales for the quarter ended Sept. 30, 2026, reached $19.9 billion, up from $11.1 billion in the prior quarter and $5.0 billion a year earlier. Gross margin declined to 12.7% from 17.5% in the previous quarter but improved from 9.3% in the year-ago period. Net income rose to $1.6 billion, compared with $1.2 billion in the prior quarter and $168 million a year earlier. Diluted GAAP earnings per share were $1.75, with non-GAAP diluted earnings at $1.81 per share.
Operating cash flow was negative $434 million for the quarter, while capital expenditures and investments totaled $47 million. The company described the financial results as unaudited.
For fiscal 2027, Supermicro set revenue guidance between $72.0 billion and $82.0 billion, linking the outlook to AI server demand and strength in data-center systems.
SambaNova Partnership and AI System Deployment
Supermicro plans to initially use 10,000 SambaNova SN50 reconfigurable dataflow unit chips to build disaggregated AI-inference systems paired with NVIDIA GPUs, according to a joint announcement. Under the partnership, Supermicro will integrate, test, deliver, and support these systems, including on-site service. SambaNova engineers will assist with model deployment and tuning.
Initial deployments will target NeoClouds and sovereign clouds before expanding to enterprises operating AI in their own data centers. SambaNova said, “Supermicro will work with SambaNova to develop leading-edge SN50 inference racks that operate alongside NVIDIA GPUs.”
Supermicro attributed its results and raised outlook to demand for AI-capable data-center systems. Investors will consider the stronger revenue and guidance alongside the quarter’s compressed margin and negative operating cash flow as AI spending patterns evolve.
