Super Micro Posts Q1 Earnings Beat and Raises Revenue Forecast

SMCI reported fiscal first-quarter net sales of $19.95 billion for the quarter ended Sept. 30, 2026, up from $5.0 billion a year earlier, along with non-GAAP earnings of $1.81 per share (GAAP: $1.75) in results released Tuesday, Nov. 3. Zacks said the adjusted figure beat a $1.24 consensus estimate and that revenue also topped expectations. MarketBeat listed a revenue consensus of $17.53 billion, and the result also exceeded the company's own Oct. 20 preliminary range of $18.5 billion to $19.5 billion.

For the December quarter, the company's release guided net sales of $19.5 billion to $21.5 billion and non-GAAP EPS of $1.66 to $1.90 (GAAP: $1.59 to $1.83). It also set fiscal 2027 net sales guidance at $72 billion to $82 billion, raising its outlook. CEO Charles Liang said the company's transformation into a Total AI and IT Datacenter Solution provider continues to accelerate, and CFO Mark Long told MarketWatch the company is building a "high-quality customer base" that is fueling revenue growth.

The bear case sits below the top line. GAAP gross margin was 12.7%, down from 17.5% in the prior quarter, though up from 9.3% a year earlier. Cash flow used in operations was $434 million in the quarter, against GAAP net income of $1,594 million.

Zacks also noted the stock has underperformed the S&P 500 year to date. Watch whether gross margin and cash flow improve in the December quarter, how net sales land against the guided range, and the NetApp report due Dec. 1.