SMCI Q4 FY2026 Earnings: $11.1B Sales, Margin Rebound
Introduction and immediate market reaction
Super Micro Computer delivered a powerful final fiscal quarter. Revenue nearly doubled year over year to $11.12 billion, GAAP gross margin reached 17.5%, and non-GAAP diluted EPS was $1.70. Management also set FY2027 revenue guidance at $65 billion to $72 billion.
The results are unaudited and preliminary. Supermicro says they can change as it completes closing procedures and its annual audit. SMCI was $34.00 at 7:59 p.m. ET, up 7.59% from its $31.60 regular-session close, according to Nasdaq’s after-hours quote.
Key Takeaway
Supermicro’s Q4 confirmed an abrupt recovery in profitability and paired it with much larger FY2027 revenue guidance. The 7.59% after-hours move reflected that stronger margin and outlook combination. However, inventory, receivables, cash conversion and compliance execution remain the practical tests of whether the growth is durable.
Educational disclaimer
This article is educational, informational research—not financial advice.
We strive to keep data accurate, but unavoidable errors or omissions may occur. Verify important information with primary sources.
What investors expected before earnings
Supermicro previously guided for Q4 revenue of $11.0 billion to $12.5 billion, GAAP diluted EPS of $0.53 to $0.67, and non-GAAP diluted EPS of $0.65 to $0.79. In July, it said revenue was likely near the low end of that range while margins would improve.
Reported versus expected scoreboard
No single timestamped consensus source with consistent GAAP/non-GAAP definitions was retained. The table therefore uses unavailable rather than mixing estimates.
| Metric | Reported | Expected | Surprise | Year-over-year |
|---|---|---|---|---|
| Revenue | $11.120B | unavailable | unavailable | +93% |
| Non-GAAP diluted EPS | $1.70 | unavailable | unavailable | +315% |
Quick note on non-GAAP: GAAP is the standard U.S. accounting framework. Non-GAAP figures adjust the company’s GAAP results for selected items; for this quarter, Supermicro’s non-GAAP EPS excludes stock-based compensation expense and its related tax effect. That can help compare operating performance across periods, but it is not a replacement for GAAP results. Here, GAAP diluted EPS was $1.62 and non-GAAP diluted EPS was $1.70.
Revenue landed near the low end of management’s prior range. However, the 17.5% reported GAAP gross margin was dramatically above the earlier 8.2% to 8.4% outlook.
Revenue segments and AI performance
Supermicro does not disclose standalone AI revenue. Instead, its relevant operating evidence is revenue, new orders and backlog.
| AI-infrastructure indicator | Q4 / FY2026 disclosure | Comparable context |
|---|---|---|
| Q4 net sales | $11.120B | $5.757B in Q4 FY2025 |
| New orders generated during FY2026 | More than $60B | Full-year company disclosure |
| Backlog entering FY2027 | Record backlog | No dollar amount disclosed in the final release |
| Enterprise and other customers added | Several hundred | Past-year company disclosure |
Orders and backlog signal demand visibility, but recognized revenue requires delivery. The company has cautioned that some orders may not be firm commitments and can be delayed or cancelled.
Margins, cash flow, and capital spending
The Q4 margin reset was the key operating improvement. Nevertheless, the full-year cash-flow statement shows the working-capital cost of rapid growth.
| Metric | Q4 FY2026 | Q4 FY2025 | FY2026 |
|---|---|---|---|
| GAAP gross margin | 17.5% | 9.5% | 10.8% |
| Non-GAAP gross margin | 17.6% | 9.6% | 10.9% |
| Operating cash flow | $747M | unavailable | ($6.810B) |
| Capital expenditures and investments | $25M | unavailable | $200M cash used in investing activities |
Receivables rose $3.922 billion and inventories rose $8.877 billion in FY2026. As a result, operating cash flow was a $6.810 billion outflow even though GAAP net income more than doubled.
Updated guidance
| Period | Revenue outlook | GAAP diluted EPS | Non-GAAP diluted EPS |
|---|---|---|---|
| Q1 FY2027 | $14.5B–$15.5B | $0.89–$0.98 | $1.01–$1.10 |
| FY2027 | $65.0B–$72.0B | not provided | not provided |
The Q1 outlook points to another step up from the quarter just reported. The FY2027 midpoint is $68.5 billion, an editorial calculation from management’s range.
Market expectations
Provider and as-of context: TipRanks’ SMCI forecast page was checked on August 11, 2026; the indexed page describes ratings received in the current month and a trailing three-month target range. Nasdaq listed SMCI’s August 11 regular-session close at $31.60. Ratings and targets are changing third-party estimates, not company-reported facts or investment instructions.
| Buy | Hold | Sell |
|---|---|---|
| 7 | 19 | 2 |
The following range shows the analyst cohort’s valuation targets relative to the August 11 regular-session close; it is not a prediction by AIStocksHub.
| Current regular-session close | Lowest target | Average target | Highest target |
|---|---|---|---|
| $31.60 | $30.00 | $38.00 | $48.00 |
Management commentary
Charles Liang said Supermicro added customers, generated more than $60 billion in new orders and entered FY2027 with record backlog. He attributed the profitability improvement to a richer enterprise mix and broader adoption of the company’s Data Center Building Block Solutions architecture.
What improved versus what disappointed
Improved: Revenue grew 93% year over year. Gross margin expanded 800 basis points. FY2027 revenue guidance increased substantially.
Still unresolved: Revenue was near the lower end of the earlier Q4 range. FY2026 operating cash flow was negative. The company continues to disclose an independent review related to export-control issues.
Why the stock moved
SMCI rose 7.59% in after-hours trading to $34.00 as of 7:59 p.m. ET, from its $31.60 August 11 regular-session close, according to Nasdaq. The move followed sharply stronger margins, adjusted EPS above the company’s prior guidance range and a much larger FY2027 revenue outlook. This is an after-hours snapshot, not the next regular-session closing return; cash intensity, backlog-conversion risk and compliance uncertainty remain important counterweights.
Before-versus-after investment thesis
Before the release, investors needed confirmation that the July margin update would hold. After the release, the 17.5% GAAP margin is reported; the next test is whether record backlog converts into durable revenue and cash flow.
Post-earnings bull case
The bull case is grounded in the Q4 revenue surge, profitability recovery and FY2027 revenue guide. A sustained enterprise mix could mean higher earnings on each dollar of sales than earlier in FY2026.
Post-earnings bear case
Orders and backlog are not recognized revenue. They may be delayed or cancelled. The FY2026 operating-cash outflow and the continuing export-control review also remain material execution risks.
What to watch before the next quarter
- Q1 FY2027 revenue against the $14.5 billion to $15.5 billion outlook.
- Whether gross margin sustains after reaching 17.5% in Q4.
- Inventory and receivables conversion into operating cash flow.
- Any update on the export-control review.
Final earnings verdict
Q4 gave Supermicro stronger evidence of margin recovery and demand momentum. The FY2027 outlook extends that momentum. The next proof point is cash conversion and dependable execution as the company scales.
FAQ
What was SMCI’s Q4 FY2026 revenue?
Supermicro reported $11.120 billion, up from $5.757 billion a year earlier.
What was SMCI’s Q4 gross margin?
GAAP gross margin was 17.5%, compared with 9.5% a year earlier. Non-GAAP gross margin was 17.6%.
What is Supermicro guiding for FY2027?
The company expects FY2027 net sales of $65 billion to $72 billion and Q1 FY2027 revenue of $14.5 billion to $15.5 billion.
Are the results final?
No. Supermicro describes them as preliminary and unaudited.
