Super Micro Computer (NASDAQ:SMCI) Announces Earnings Results, Beats Expectations By $0.20 EPS

Super Micro Computer (NASDAQ:SMCI) announced its earnings results on Tuesday. The company reported $0.69 EPS for the quarter, beating analysts’ consensus estimates of $0.49 by $0.20, FiscalAI reports. Super Micro Computer had a net margin of 3.77% and a return on equity of 12.70%. The business had revenue of $12.68 billion during the quarter, compared to analysts’ expectations of $10.34 billion. During the same period in the prior year, the company earned $0.59 earnings per share. The business’s revenue was up 123.4% compared to the same quarter last year. Super Micro Computer updated its Q3 2026 guidance to 0.600- EPS.

Here are the key takeaways from Super Micro Computer’s conference call:

• Super Micro reported a record Q2 revenue of $12.68 billion (up 123% YoY), driven by AI GPU platforms (>90% of sales), and guided at least $12.3B for Q3 and $40B+ for FY26.
• Gross margin compressed to 6.4% (non?GAAP) from 9.5% due to customer/product mix (large model builders with pricing leverage), higher freight/expedite costs, component shortages and tariffs; management expects only modest QoQ improvement in the near term.
• Management is prioritizing its DCBBS (data center building block solution) portfolio, which contributed ~4% of profit in H1 and is planned to at least double by end of calendar 2026, with management claiming DCBBS gross margins >20% as a key long?term margin driver.
• Revenue and geographic concentration and balance?sheet dynamics are risks—one large data center customer accounted for ~63% of Q2 revenue, the US was ~86% of sales, inventory rose to $10.6B, and net debt was ~$787M despite new credit facilities.

Super Micro Computer Stock Up 9.4%

NASDAQ:SMCI traded up $2.80 during mid-day trading on Wednesday, reaching $32.47. The stock had a trading volume of 86,724,428 shares, compared to its average volume of 34,598,750. The company has a debt-to-equity ratio of 0.72, a current ratio of 5.39 and a quick ratio of 2.95. The company has a market capitalization of $19.38 billion, a price-to-earnings ratio of 25.92, a price-to-earnings-growth ratio of 0.61 and a beta of 1.53. Super Micro Computer has a 1-year low of $27.60 and a 1-year high of $66.44. The stock’s 50 day simple moving average is $31.36 and its two-hundred day simple moving average is $41.39.

Super Micro Computer News Roundup

Here are the key news stories impacting Super Micro Computer this week:

• Positive Sentiment: Q2 beats — Supermicro reported revenue of ~$12.7B (up ~123% YoY) and non?GAAP EPS $0.69 vs. consensus ~$0.49, with net income of ~$401M, a clear top?and?bottom?line surprise that drove the rally. Supermicro Announces Second Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: Raised guidance — Management lifted annual revenue guidance sharply (to ~$40B) and issued Q3 revenue/EPS guidance above Street expectations, signaling confidence in continued AI server demand and supporting upside to consensus. Super Micro Computer raises annual revenue forecast amid strong demand for its servers
• Positive Sentiment: AI/hyperscale tailwinds — Multiple reports attribute the surge to hyperscale AI and U.S. data?center deployments for AI?optimized servers, indicating durable end?market demand rather than a one?time order spike. Super Micro Computer Q2 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Analyst support — Firms including Rosenblatt reiterated buy ratings after the print, which helps sustain investor interest even as some target changes occur. Rosenblatt Securities Reiterates Buy Rating for Super Micro Computer (NASDAQ:SMCI)
• Neutral Sentiment: Mixed analyst moves — Needham trimmed its price target (from $51 to $40) but kept a buy rating; this reduces upside expectations from some desks while still signaling conviction. SMCI price target lowered at Needham
• Negative Sentiment: Margin pressure — Management warned of near?term margin compression and Q2 gross margin fell versus prior periods (management called out “near?term margin pressure”), which raises questions about sustainable profitability even with huge revenue growth. SMCI Stock Rallies 11% as AI Boom Boosts Earnings. This Remains a Worry for Super Micro.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Advisors Asset Management Inc. acquired a new position in Super Micro Computer in the first quarter worth about $39,000. iSAM Funds UK Ltd acquired a new position in Super Micro Computer during the 3rd quarter valued at about $63,000. MUFG Securities EMEA plc bought a new position in Super Micro Computer in the second quarter valued at approximately $74,000. Sunbelt Securities Inc. boosted its holdings in Super Micro Computer by 26.4% during the third quarter. Sunbelt Securities Inc. now owns 1,870 shares of the company’s stock worth $90,000 after buying an additional 390 shares during the last quarter. Finally, Brown Brothers Harriman & Co. increased its stake in Super Micro Computer by 221.1% in the third quarter. Brown Brothers Harriman & Co. now owns 2,087 shares of the company’s stock valued at $100,000 after purchasing an additional 1,437 shares in the last quarter. 84.06% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Super Micro Computer in a research note on Monday, December 29th. Raymond James Financial decreased their price target on shares of Super Micro Computer from $53.00 to $50.00 and set an “outperform” rating on the stock in a research note on Wednesday, November 5th. Wall Street Zen downgraded shares of Super Micro Computer from a “hold” rating to a “sell” rating in a report on Saturday, November 15th. Needham & Company LLC reduced their price objective on shares of Super Micro Computer from $51.00 to $40.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Citigroup lowered their target price on shares of Super Micro Computer from $48.00 to $39.00 and set a “neutral” rating for the company in a research note on Tuesday, January 20th. Eight investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $45.31.

Super Micro Computer Company Profile

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.