Supermicro Lifts First-Quarter Sales Outlook

The Tip Desk · October 22, 2026 · 3 min read

Preliminary first-quarter fiscal 2027 sales are estimated at $18.5 billion to $19.5 billion, versus prior guidance of $14.5 billion to $15.5 billion.

Super Micro Computer (SMCI), an AI, enterprise, storage and 5G/edge IT solutions provider, said preliminary first-quarter fiscal 2027 revenue is estimated at $18.5 billion to $19.5 billion, versus guidance of $14.5 billion to $15.5 billion, primarily due to increased demand for AI platforms.

The raise of about $4.0 billion at both ends of the range is the quarter’s defining development. The company had issued that $14.5 billion to $15.5 billion sales outlook with its fourth-quarter fiscal 2026 results, along with GAAP diluted earnings of $0.89 to $0.98 a share and non-GAAP diluted earnings of $1.01 to $1.10 a share, assuming tax rates of about 20.1% and 20.5% and diluted share counts of 745 million and 761 million.

Gross margin is also being lifted. Preliminary first-quarter fiscal 2027 gross margins are estimated at 12.0% to 12.5%, versus prior guidance of 10.4% to 10.8%, which the company attributed primarily to customer and product mix.

The figures are unaudited, based on preliminary results and management’s estimates, and subject to revision as the company completes its financial closing. Actual results may differ materially from the preliminary ranges.

The lift follows a fourth quarter in which Supermicro already beat its own margin outlook. Net sales for the quarter ended June 30, 2026, were $11.1 billion, up from $10.2 billion in the third quarter of fiscal 2026 and $5.8 billion a year earlier. GAAP gross margin was 17.5%, versus 9.9% in the third quarter and 9.5% a year earlier; non-GAAP gross margin was 17.6%.

Net income was $1,178 million, or $1.62 a share, versus $483 million, or $0.72 a share, in the third quarter and $195 million, or $0.31 a share, a year earlier. Cash flow from operations was $747 million.

In a July preliminary update, the company had said fourth-quarter revenue was estimated near the low end of $11.0 billion to $12.5 billion guidance, and that GAAP and non-GAAP gross margins were estimated at 15% to 17%, significantly higher than guidance of 8.2% to 8.4%, primarily due to a favorable customer and product mix. Those margin estimates were then confirmed at 17.5% GAAP and 17.6% non-GAAP.

Backlog rose to record levels at the end of fiscal 2026, with total new orders in excess of $60 billion received during the fourth quarter of fiscal 2026, expected to be delivered over future quarters. Founder, President and CEO Charles Liang said the company added several hundred enterprise and other customers in the past year, generated more than $60 billion in new orders, and booked record backlog entering fiscal 2027.

For the full fiscal year ended June 30, 2026, net sales were $39.1 billion, versus $22.0 billion for the year ended June 30, 2025. Full-year gross margin was 10.8%, versus 11.1% a year earlier. Net income was $2.2 billion, or $3.26 a share, versus $1.0 billion, or $1.68 a share. As of June 30, 2026, cash and cash equivalents were $7.5 billion and total bank debt and convertible notes were $8.7 billion.

Supermicro will present first-quarter fiscal 2027 results on November 3, 2026, at 5:00 p.m. ET.