Supermicro Announces First Quarter of Fiscal Year 2027 Financial Results
SAN JOSE, Calif. -- November 3, 2026 -- (BUSINESS WIRE) -- Super Micro Computer, Inc. (NASDAQ: SMCI) (“Supermicro” or the “Company”), an AI, Enterprise, Storage, and 5G/Edge IT Total Solution Provider, featuring Data Center Building Block Solutions® (DCBBS), today announced unaudited financial results for its first quarter ended September 30, 2026.
First Quarter Fiscal Year 2027 Highlights
- Net sales of $19.9 billion versus $11.1 billion in Q4'26 and $5.0 billion in Q1'26.
- Gross margin of 12.7% versus 17.5% in Q4'26 and 9.3% in Q1'26.
- Net income of $1,594 million versus $1,178 million in Q4'26 and $168 million in Q1'26.
- Diluted net income per common share of $1.75 versus $1.62 in Q4'26 and $0.26 in Q1'26.
- Non-GAAP gross margin of 12.8% versus 9.5% in Q1'26.
- Non-GAAP diluted net income per common share of $1.81 versus $0.35 in Q1'26.
- Cash flow used in operations for Q1'27 of $434 million and capital expenditures and investments of $47 million.
“Supermicro’s transformation into a Total AI and IT Datacenter Solution provider continues to accelerate, delivering record revenue of $19.9 billion for the first quarter fiscal 2027,” said Charles Liang, Founder, President, and CEO of Supermicro. “DCBBS is driving significant value for our customers—from gigawatt-scale datacenters down to single-container PODs—which, including our expanding software, proactive service, and networking solutions, is enhancing profitability and long-term shareholder value. Through key enterprise partnerships and expanding global production capacity, we are making AI infrastructure faster to deploy, superior up-time and more cost-effective for our customer base.”
The Non-GAAP gross margin for the first quarter of fiscal year 2027 was 12.8% with adjustments for stock-based compensation expense of $8 million. The Non-GAAP diluted net income per common share for the first quarter of fiscal year 2027 was $1.81.
As of September 30, 2026, total cash and cash equivalents was $6.9 billion and total bank debt and convertible notes were $8.6 billion.
Business Outlook
The Company expects net sales in the range of $19.5 billion and $21.5 billion for the second quarter of fiscal year 2027 ending December 31, 2026, GAAP net income per diluted share of $1.59 to $1.83 and non-GAAP net income per diluted share of $1.66 to $1.90. The Company’s projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 21.2% and 21.1%, respectively, and a fully diluted share count of 753 million shares for GAAP and fully diluted share count of 769 million shares for non-GAAP. The outlook for the second quarter of fiscal year 2027 GAAP net income per diluted share includes approximately $89 million in expected stock-based compensation expense, net of related tax effects of $22 million that are excluded from non-GAAP net income per diluted share.
For fiscal year 2027, the Company expects net sales in the range of $72.0 billion to $82.0 billion.
Conference Call and Webcast Information
Supermicro will present a live audio webcast of our conference call to review its first quarter 2027 financial results on Tuesday, November 3, 2026, at 5:00 p.m. ET / 2:00 p.m. PT. The webcast will be available at https://ir.supermicro.com.
A replay of the webcast will be available shortly after the call at the same website and will remain accessible for one year.
Forward Looking Statements and Other Disclosures
Statements contained in this press release that are not historical fact may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “may,” “plan,” “seek,” “should,” “will,” “would” “optimistic” or similar expressions and the negatives of those terms. Such forward looking statements may include statements regarding, among other things, guidance for the second quarter of fiscal year 2027. Such forward looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from those anticipated, including: (i) our quarterly operating results may fluctuate, (ii) as we increasingly target larger customers and larger sales opportunities, our customer base may become more concentrated, our cost of sales may increase, our margins may be lower and our sales may become less predictable for a variety of reasons, many of which are not in our control, (iii) the average sales prices for our server solutions could decline if customers do not continue to purchase our latest generation products or additional components, and (iv) adverse economic conditions could affect our business, including, but not limited to, increased tariffs. Certain prior period amounts have been reclassified to conform to the current period presentation. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are detailed in our filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings, particularly in our Annual Report on Form 10-K for our fiscal year ended June 30, 2026.
Financial Information Is Preliminary and May Be Subject to Change
The unaudited financial information presented in this press release is preliminary. The final financial results reported for this period may also differ from the results reported in this release.
The financial results presented reflect the Company's preliminary estimated unaudited financial results, based upon information available to the Company as of the date of this press release. The Company has provided preliminary estimates of financial results primarily because its financial closing procedures for the quarter ended September 30, 2026 are not yet complete. The data are not a comprehensive statement of the Company's results for such periods, and the actual results may differ materially from these preliminary estimated data. The Company's actual results remain subject to the completion of management’s and its audit committee’s review and other financial closing processes as well as the completion and preparation of its financial data for such periods. The Company's independent registered public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to such preliminary data. During the course of the preparation of the Company's financial statements and related notes and the completion of the review for such periods, additional adjustments to the preliminary estimated financial information presented here may be identified, and its final results for these periods may vary from these preliminary estimates. This preliminary estimated data should not be considered a substitute for the financial statements to be prepared in accordance with accounting principles generally accepted in the United States and to be filed with the Securities and Exchange Commission once available.