Key insights
- Super Micro Computer (SMCI) shares surged 12% after raising its fiscal first-quarter revenue outlook to $18.5-$19.5 billion, significantly exceeding analyst expectations. The company also increased its gross margin forecast to 12.0%-12.5%. This positive revision, driven by strong AI platform demand, provides relief to investors following a previous warning and highlights robust underlying demand and improved execution.
Investing.com -- Super Micro Computer (NASDAQ: SMCI) shares surged 12% in after-hours trading Tuesday after the server maker sharply raised its fiscal first-quarter revenue outlook, citing stronger demand for AI platforms.
The company now expects preliminary revenue of $18.5 billion to $19.5 billion for the quarter ended September 30, up from its previous forecast of $14.5 billion to $15.5 billion. The midpoint of the revised range is well above analysts’ consensus estimate of $14.99 billion.
Supermicro also raised its gross margin outlook to 12.0% to 12.5%, from 10.4% to 10.8% previously, attributing the improvement primarily to a more favorable customer and product mix.
The update offers relief to investors after the company’s preliminary results warning in July, when Supermicro said fourth-quarter fiscal 2026 revenue would come in near the low end of its forecast. The company had also flagged record orders exceeding $60 billion, highlighting strong underlying demand despite concerns about revenue execution.
Supermicro will discuss its results on an earnings call scheduled for November 3 at 5 p.m. ET.
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