Super Micro Computer stock surges 9% as guidance shatters expectations

Investing.com -- Super Micro Computer Inc. (NASDAQ: SMCI) sent shares rallying 9% after reporting robust fourth-quarter profits and issuing aggressive forward guidance that blew past Wall Street consensus. The blowout outlook served as a sharp positive surprise for investors, who had braced for headwind after the AI server provider signaled soft Q4 revenue in its preliminary update on July 21.

Super Micro reported fourth-quarter adjusted earnings per share of $1.70, beating the analyst estimate of $1.59, while revenue of $11.12 billion came in slightly below the consensus of $11.26 billion. Revenue surged 93% YoY from $5.8 billion in the same quarter last year.

The company issued first-quarter revenue guidance of $14.5 billion to $15.5 billion, with a midpoint of $15 billion significantly exceeding the analyst estimate of $11.99 billion. Adjusted EPS guidance of $1.01 to $1.10, with a midpoint of $1.06, also topped the consensus of 74 cents. For fiscal year 2027, Supermicro expects revenue between $65 billion and $72 billion, compared to the analyst estimate of $54.43 billion.

"Our Total AI/IT Solutions strategy continues to deliver strong results, we 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," said Charles Liang, Founder, President and CEO of Supermicro.

The company’s fourth-quarter gross margin expanded to 17.5%, up from 9.9% in the third quarter and 9.5% in the same quarter last year. Adjusted gross margin reached 17.6%, compared to 9.6% in the fourth quarter of fiscal 2025. Net income totaled $1.18 billion, or $1.62 per diluted share, versus $195 million, or $0.31 per diluted share, in the year-ago period.

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