Super Micro Computer (SMCI) is set to announce second-quarter earnings on Tuesday, February 3, after market close.
Wall Street expects the San Jose, Calif.-based company to post an EPS of $0.49 and revenue of $10.34B for the quarter.
SMCI’s CEO Charles Liang, during its Q1 earnings call, said that the company expects net sales in the range of $10B to $11B for Q2 fiscal 2026 and net sales of $36B for FY2026.
Analysts are cautious about SMCI due to concerns over the company’s gross margin pressure, shipment delays, volatile operations, and low profit margins despite strong AI infrastructure demand.
KeyBanc Capital Markets rated SMCI as Sector Weight, saying that SMCI could raise revenue guidance above $36B (60%+ y/y), but the brokerage firm is concerned that gross margins are likely flat at best from ~6.5% levels, suggesting limited gross profit dollar growth.
Wall Street analysts and Seeking Alpha’s Quant remain cautious, rating the stock Hold and Sell, respectively.
Seeking Alpha analyst Gytis Zizys highlighted that SMCI’s Q2 guidance suggests robust demand, with a $13B+ backlog and potential for further expansion, but margin contraction overshadows topline momentum.
However, Zizys still rated the stock Hold, warning about persistent margin pressures and unresolved accounting concerns, despite strong AI-driven revenue growth.
Over the last two years, SMCI has beaten EPS estimates 63% of the time and has beaten revenue estimates 50% of the time.
Over the last three months, EPS estimates have seen three upward revisions versus 13 downward moves, while revenue estimates have seen 15 upward revisions and no downward revisions.
Shares in the company, which provides IT solutions for AI, cloud, storage, and 5G/Edge, have gained around 1.64% in the past year, underperforming the broader S&P Index, which has gained around 14.3% during the same period.
However, Seeking Alpha analysts are bullish, rating SMCI a Buy.