Key takeaways
- Supermicro reported fiscal Q1 2027 net sales of $19.9 billion on November 3, versus $5.0 billion a year earlier and $11.1 billion in the June quarter.
- GAAP gross margin fell to 12.7% from 17.5% in the prior quarter, and operating cash flow was negative $434 million.
- It guided December-quarter net sales to $19.5 billion to $21.5 billion and fiscal 2027 net sales to $72 billion to $82 billion.
Super Micro Computer reported net sales of $19.9 billion for its fiscal first quarter of 2027 on November 3, nearly four times the $5.0 billion it sold a year earlier. In its earnings release, filed with the SEC the same day, the company also guided to $19.5 billion to $21.5 billion in net sales for the December quarter. These are the Super Micro earnings numbers, as the company reported them.
Supermicro builds servers for AI data centers and sells them to cloud providers and enterprises. The quarter ended September 30, 2026. The figures are unaudited and, the company says, preliminary, because its closing procedures were not finished.
Revenue jumped, but the margin fell
Net sales were $19,945.8 million, against $5,017.8 million a year earlier and $11.1 billion in the June quarter. Net income was $1,594 million, up from $168 million. Diluted earnings per share were $1.75 on a GAAP basis (under standard accounting rules) and $1.81 non-GAAP, which leaves out stock-based compensation.
Gross margin went the other way. It was 12.7%, down from 17.5% in the June quarter, though up from 9.3% a year ago. Non-GAAP gross margin was 12.8%. Selling more servers did not mean keeping more of each dollar than three months earlier.
Operating income was $2,064 million, or about 10% of sales. Adjusted EBITDA was $2,227 million, 11.2% of sales.
Cash went out as inventory and receivables built up
Cash flow from operations was negative $434 million. Accounts receivable rose to $9.69 billion from $6.13 billion at June 30, and inventories rose to $15.05 billion from $12.90 billion. Deferred revenue, which is money received or billed for products not yet recognized as sales, rose to $4.33 billion from $1.58 billion in the current portion.
Capital expenditures and investments were $47 million. Cash and equivalents were $6.9 billion, and total bank debt and convertible notes were $8.6 billion, according to the company.
The outlook for the December quarter and the year
For the quarter ending December 31, 2026, Supermicro expects:
| Measure | Guidance |
|---|---|
| Net sales | $19.5 billion to $21.5 billion |
| GAAP diluted EPS | $1.59 to $1.83 |
| Non-GAAP diluted EPS | $1.66 to $1.90 |
For fiscal 2027, which ends June 30, 2027, it expects net sales of $72.0 billion to $82.0 billion. The low end of the December range is slightly below this quarter's sales, so the range covers both a small decline and further growth.
CEO Charles Liang said the company's shift to a "Total AI and IT Datacenter Solution provider continues to accelerate." He credited its Data Center Building Block Solutions, a line of pre-engineered data center components, for the record quarter.
The board also declared a dividend of $17.50 per share on its 7.00% Series A Mandatory Convertible Preferred Stock, payable December 1 to holders of record on November 15.
What to watch
Supermicro held its earnings call at 5:00 p.m. ET on November 3, with a replay on its investor site. The next numbers to check are the December quarter's gross margin and whether cash flow turns positive as receivables are collected. Our coverage of the sector also includes AMD's third-quarter earnings.
Sources
- Supermicro Announces First Quarter of Fiscal Year 2027 Financial Results (Form 8-K, Exhibit 99.1)Super Micro Computer, Inc. via SEC EDGAR
- Super Micro Computer Form 8-K, November 3, 2026SEC EDGAR
