Super Micro Computer (NASDAQ:SMCI) reported record fiscal 2026 revenue of $39.1 billion, up 78% from $22 billion in fiscal 2025, as demand for artificial intelligence infrastructure continued to drive growth. The company also projected fiscal 2027 revenue of $65 billion to $72 billion and said it entered the new year with a record backlog after receiving more than $60 billion in new orders during the fourth quarter.
Founder, President, Chief Executive Officer and Chairman Charles Liang said the company is expanding beyond its historical role as a U.S.-based server manufacturer into a provider of total data-center building-block solutions, or DCBBS. Those offerings combine compute, storage, direct liquid cooling, networking, management software and lifecycle services.
Fourth-Quarter Results Surpass Guidance
For the fiscal fourth quarter, Supermicro reported revenue of $11.1 billion, up 93% from a year earlier and 9% sequentially. Revenue was near the low end of the company’s $11 billion to $12.5 billion outlook because of customer delays related to power availability, cooling and networking readiness, according to Chief Financial Officer David Weigand.
Weigand said the delayed revenue is expected to be recognized in later quarters. Liang characterized the issue as a timing matter rather than a change in demand.
Fourth-quarter non-GAAP gross margin rose to 17.6%, from 10.1% in the prior quarter and well above the company’s 8.2% to 8.4% guidance. Non-GAAP diluted earnings per share were $1.70, compared with the forecast range of $0.65 to $0.79. GAAP diluted EPS was $1.62.
Weigand said approximately 75% of the sequential gross-margin improvement resulted from a better-than-expected customer and product mix, including the deferral of several contracts into fiscal 2027. Lower tariff costs and lower inventory reserves accounted for the remaining improvement.
The company said it did not record a tariff rebate during the quarter, though it is pursuing refunds. Weigand described the lower tariff and excess-and-obsolete inventory costs as potentially nonrecurring benefits.
- Fiscal 2026 non-GAAP diluted EPS rose 76% to $3.63.
- Fiscal 2026 GAAP diluted EPS was $3.26, compared with $1.68 in fiscal 2025.
- Fiscal 2026 non-GAAP operating margin increased to 8.1% from 7.1% a year earlier.
- Fiscal 2026 non-GAAP gross margin was 10.9%, compared with 11.2% in fiscal 2025.
AI Mix, Enterprise Growth and Margin Focus
AI solutions represented about 60% of fourth-quarter revenue, down from more than 80% in the preceding quarter because of timing in large AI project ramps. Based on backlog, management expects more than 80% of future revenue to be AI-related.
Liang said the company views a portion of its AI business as CPU-based AI, agentic AI and edge-AI applications, in addition to traditional GPU-based AI. He said pure AI could account for roughly 60% to 70% of revenue, with another 10% to 20% tied to CPU-based, agentic or edge-AI applications. The remaining portion consists of traditional servers, storage and internet-of-things products.
Enterprise and channel revenue reached $5.6 billion in the fourth quarter, representing 50% of sales and increasing 172% year over year. OEM appliance and large-data-center revenue also totaled $5.5 billion, or 50% of sales, rising 50% year over year but declining 26% sequentially.
Management said it has expanded its enterprise sales force and product offerings for CPU servers, storage and IoT applications in an effort to improve the balance between revenue growth and profitability. Liang said high-volume GPU systems generally carry lower margins than CPU, storage, IoT and enterprise products.
“We will be very carefully control of balance between revenue and profitability,” Liang said. He added that the company expects its maturing DCBBS product line, including hardware, software, services and switching products, to support higher long-term margins.
Capacity, Capital and Fiscal 2027 Outlook
Supermicro said it is expanding manufacturing capacity across the U.S., Taiwan, Malaysia and the Netherlands. The company recently announced a 32-acre DCBBS campus in Silicon Valley and said its U.S. footprint is approaching 4 million square feet. Total manufacturing capacity is on track to exceed 6,000 racks per month, including more than 3,000 direct-liquid-cooling racks per month.
During the quarter, the company completed public equity offerings that raised $5.6 billion after expenses, including $1.4 billion of common stock and $4.2 billion of mandatory convertible preferred shares. The proceeds are intended primarily to support working-capital requirements associated with new orders.
Cash and cash equivalents totaled $7.5 billion at quarter end, while bank borrowings and convertible note debt totaled $8.7 billion, leaving net debt of $1.2 billion. That compared with net debt of $7.5 billion at the end of the prior quarter.
For the first quarter of fiscal 2027, Supermicro forecast revenue of $14.5 billion to $15.5 billion, GAAP diluted EPS of $0.89 to $0.98 and non-GAAP diluted EPS of $1.01 to $1.10. It expects gross margin of 10.4% to 10.8%.
Weigand said the company expects its cash conversion cycle to normalize as it fulfills backlog carrying improved customer terms. Liang said Supermicro believes its current cash flow will support its fiscal 2027 revenue target, though additional cash could be needed if revenue opportunities exceeded the company’s stated range substantially.
The company also said it expects to provide an update shortly on a board inquiry, without offering further details.
About Super Micro Computer (NASDAQ:SMCI)
Super Micro Computer, Inc (Supermicro) is a technology company that designs, develops and manufactures high-performance server, storage and networking solutions for enterprise, cloud, data center, high performance computing (HPC) and edge computing customers. The company’s product portfolio includes rackmount and blade servers, storage subsystems, motherboards, chassis, power supplies and networking components, with an emphasis on high-density, energy-efficient configurations and platforms optimized for GPU-accelerated workloads and artificial intelligence applications.
Headquartered in San Jose, California, Supermicro combines in-house engineering with a global manufacturing and distribution footprint to deliver configurable, application-specific systems.
