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

Super Micro Computer (NASDAQ:SMCI) released its earnings results on Tuesday. The company reported $0.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.49 by $0.20, FiscalAI reports. The company had revenue of $12.68 billion for the quarter, compared to analyst estimates of $10.34 billion. Super Micro Computer had a return on equity of 13.52% and a net margin of 3.11%.Super Micro Computer’s quarterly revenue was up 123.4% on a year-over-year basis. During the same period in the prior year, the firm posted $0.59 EPS. 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 Trading Up 13.8%

Shares of SMCI stock opened at $33.76 on Thursday. The firm has a market capitalization of $20.15 billion, a P/E ratio of 25.19, a P/E/G ratio of 0.61 and a beta of 1.53. Super Micro Computer has a twelve month low of $27.60 and a twelve month high of $66.44. The company has a quick ratio of 2.95, a current ratio of 5.39 and a debt-to-equity ratio of 0.72. The stock’s fifty day simple moving average is $31.38 and its 200 day simple moving average is $41.34.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Blowout Q2 results and raised guidance: Revenue surged to about $12.7B (+123% YoY) and adjusted EPS of $0.69 beat estimates; management lifted quarterly and full‑year revenue targets (Q3 revenue guide ~$12.3B; FY revenue guide ~$40B), which sparked the buying interest. Supermicro Announces Second Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: Strong market reaction and bullish coverage: Multiple bullish writeups and coverage (MarketBeat, Seeking Alpha, InsiderMonkey) highlighted the AI‑server demand and upgraded/bullish theses, helping lift sentiment. SMCI Soars Post-Earnings: Head Fake, Or Sign of True Recovery?
• Positive Sentiment: Unusual options activity: Heavy call buying (roughly 390k calls) suggests short‑term bullish speculative positioning that amplified the post‑earnings move. (Reported in trading summaries and market coverage.)
• Neutral Sentiment: Analysts split — price target cut but rating held: Needham cut its target from $51 to $40 but retained a Buy rating, signaling less upside conviction on valuation while still supporting the growth story. Super Micro Computer (NASDAQ:SMCI) Price Target Cut to $40.00 by Analysts at Needham & Company LLC
• Neutral Sentiment: Reiterated buys amid mixed views: Some firms (e.g., Rosenblatt) reiterated Buy ratings, keeping institutional support even as opinions diverge on risk/valuation. Rosenblatt Securities Reiterates Buy Rating for Super Micro Computer (NASDAQ:SMCI)
• Negative Sentiment: Gross‑margin pressure is material: Adjusted gross margin plunged to ~6.3–6.4%, down significantly sequentially and vs. last year — driven by product mix, customer concentration and higher costs; management expects limited near‑term margin recovery, which risks profitability even if top line keeps growing. Super Micro Computer: Still Plenty Of Issues But Upgrading On Valuation – Hold
• Negative Sentiment: Some market participants warn the post‑earnings rally could be a “trap”: Short‑term excitement over revenue and AI demand is offset by concerns (smart‑money sell calls, risk pieces) about sustainability, concentration and execution risks. SMCI stock’s post-earnings rally may be a ‘trap’ — smart money says sell
• Negative Sentiment: Standalone risks to monitor: analyst pieces list customer concentration, margin mix, supply‑chain/expedite costs and pricing pressure from large model builders as key near‑term risks that could reverse gains if execution slips. 3 Key Risks Facing SMCI Stock As Super Micro Computer Revenue Surges

Institutional Trading of Super Micro Computer

Hedge funds and other institutional investors have recently made changes to their positions in the company. Advisors Asset Management Inc. acquired a new position in shares of Super Micro Computer during the first quarter worth $39,000. EverSource Wealth Advisors LLC grew its position in shares of Super Micro Computer by 42.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,479 shares of the company’s stock valued at $171,000 after buying an additional 1,036 shares during the last quarter. Baird Financial Group Inc. increased its stake in shares of Super Micro Computer by 54.9% in the second quarter. Baird Financial Group Inc. now owns 18,955 shares of the company’s stock valued at $929,000 after buying an additional 6,718 shares during the period. Flow Traders U.S. LLC bought a new position in shares of Super Micro Computer during the second quarter worth about $277,000. Finally, Daiwa Securities Group Inc. raised its position in shares of Super Micro Computer by 3.4% during the second quarter. Daiwa Securities Group Inc. now owns 85,647 shares of the company’s stock worth $4,198,000 after acquiring an additional 2,799 shares during the last quarter. 84.06% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

SMCI has been the topic of several recent analyst reports. Wedbush decreased their target price on shares of Super Micro Computer from $48.00 to $42.00 and set a “neutral” rating on the stock in a report on Wednesday, November 5th. Weiss Ratings reissued a “hold (c)” rating on shares of Super Micro Computer in a research note on Monday, December 29th. Wall Street Zen downgraded shares of Super Micro Computer from a “hold” rating to a “sell” rating in a research report on Saturday, November 15th. Raymond James Financial reduced their target price on Super Micro Computer from $53.00 to $50.00 and set an “outperform” rating on the stock in a report on Wednesday, November 5th. Finally, Sanford C. Bernstein lowered their price target on Super Micro Computer from $46.00 to $42.00 and set a “market perform” rating for the company in a report on Wednesday, November 5th. Eight research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price 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.