Supermicro (SMCI) tumbled 9% during early post-market trading after reporting its first quarter fiscal 2026 financial results, which fell far short of market expectations, but its revenue outlook crushed estimates.
For the quarter ended September 30, the storage and server company reported adjusted earnings per share of $0.35 versus the consensus estimate of $0.39. GAAP EPS came in at $0.26 compared to the $0.27 estimate.
Revenue for the quarter totaled $5B, which was $800M less than the $5.8B consensus. It also reflected a year-over-year revenue loss of 15%. Adjusted gross margin for the quarter was 9.5%, which was just below the 9.6% estimate.
Peering ahead, the San Jose-based company expects second-quarter revenue ranging from $10B to $11B, with a midpoint of $10.5B more than $2B above the consensus of $8.05B. Supermicro projects second quarter adjusted EPS to range from $0.46 to $0.54 versus the $0.62 estimate.
“Super Micro Computer’s top line miss this quarter (1Q26) signifies that the company is exposed to the timing of cloud customer schedules,” said Seeking Alpha analyst The Techie. “Simultaneously, its outlook for Q2 confirms that it still has close-to-golden positioning within the AI server supply chain and will continue to benefit from next-generation product ramps, specifically Nvidia (NVDA) HGX B300 systems and GB300 NVL72. I don’t see anything out of the ordinary in SMCI’s results, particularly given the heads-up we got last month on the preliminary results. So, to me, the stock price crashing in extended trading is more the market letting out AI panic than any major shortcoming from SMCI itself.”
Supermicro expects strong revenue gains in fiscal 2026.
“With a rapidly expanding order book, including more than $13B in Blackwell Ultra orders, we expect at least $36 billion in revenue for fiscal year 2026,” said Supermicro founder and CEO Charles Liang.