Supermicro shares surge 20% as robust margins, $60B backlog eclipse soft revenue

Investing.com -- Shares of Super Micro Computer (NASDAQ: SMCI) rocketed 20% in after-hours trading on Tuesday, driven by a blockbuster preliminary fourth-quarter update that showcased record-breaking demand and a massive leap in profitability.

Despite projecting top-line revenue near the lower end of its expected range, the server and AI infrastructure giant completely reset the market’s profitability narrative. Supermicro announced that its GAAP and non-GAAP gross margins for the quarter ended June 30, 2026, are estimated to land between 15% and 17%. This severely outpaces the company’s previous forecast of 8.2% to 8.4%, an expansion management directly attributed to a highly favorable product and customer mix.

While the company expects revenue to hover near the bottom of its $11.0 billion to $12.5 billion guidance, investors overwhelmingly cheered the margin expansion and unprecedented forward-looking indicators.

Supermicro revealed that its order backlog swelled to an all-time high at the close of fiscal 2026. The company raked in a staggering $60 billion in new orders during the fourth quarter alone. These orders lock in a massive delivery pipeline, which Supermicro expects to fulfill over the coming quarters.

The dramatic after-hours rally highlights a market prioritizing bottom-line execution and sustained AI infrastructure demand over near-term revenue maximization.

The company is scheduled to release its full fourth-quarter and fiscal 2026 financial results during its upcoming earnings call on August 11 at 5:00 p.m. EDT.

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