Super Micro Computer Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Super Micro Computer, Inc. SMCI posted third-quarter fiscal 2026 non-GAAP earnings of 84 cents per share, which beat the Zacks Consensus Estimate by 33.3%. The bottom line climbed 171% year over year.SMCI generated net sales of $10.24 billion, which increased 121.7% from the year-ago quarter but missed the Zacks Consensus Estimate by 17.1%. The quarter reflected strong AI infrastructure demand, with AI GPU-related platforms contributing more than 80% of revenues.SMCI Sees Strong Demand but Faces Timing HeadwindsSMCI’s management attributed the revenue shortfall largely to customer site readiness delays, noting that several deployments were not yet prepared with the needed power and networking. The company also flagged an industry-wide shortage of key components, including CPU, GPU and memory, which continued to constrain shipments.Despite the timing impact, orders and backlog were described as strong, supported by AI infrastructure demand across NeoCloud, sovereign AI and agentic AI opportunities. SMCI also emphasized efforts to expand its traditional enterprise and storage footprint, alongside broader adoption of its Data Center Building Block Solutions (DCBBS) approach.Super Micro Computer, Inc. Price, Consensus and EPS Surprise Super Micro Computer, Inc. price-consensus-eps-surprise-chart | Super Micro Computer, Inc. QuoteSuper Micro Computer’s Mix Shift Lifts Profitability ProfileSuper Micro Computer’s non-GAAP gross margin expanded to 10.1% from 6.4% in the prior quarter, aided by customer and product mix improvements, along with lower tariffs, fewer expedite charges and reduced inventory reserve charges.Operating expenses increased as the company invested in headcount and growth initiatives. On a non-GAAP basis, operating expenses were $278 million. Non-GAAP operating margin improved to 7.3% from 4.5% in the previous quarter, reflecting the stronger gross margin performance.SMCI’s Working Capital Swings Pressure Cash FlowCash and cash equivalents were $1.29 billion at the end of March 31 compared with $4.1 billion at the end of Dec. 31, 2025. Total bank debt and convertible notes were $8.8 billion, resulting in a net debt position of $7.5 billion.SMCI reported cash flow used in operations of $6.6 billion, driven primarily by a $10 billion reduction in accounts payable and higher inventory levels. Inventory ended the quarter at $11.1 billion, up from $10.6 billion in the prior quarter, as the company managed supply dynamics and prepared for ongoing platform demand.The cash conversion cycle lengthened to 106 days, reflecting higher days of inventory and higher days sales outstanding, underscoring the working-capital intensity tied to large-scale AI deployments.SMCI Expands DCBBS and Capacity for AI FactoriesSuper Micro Computer continued to position DCBBS as a key differentiator, describing the model as a one-stop shop that combines rack-scale systems, liquid cooling infrastructure, networking and software tools. Management highlighted growing traction in data center management software and services, including subscription-based offerings bundled with hardware to deepen customer relationships and support longer-term profitability.The company also outlined manufacturing expansion plans to support next-generation AI infrastructure builds. Updates included additional production ramp across international sites and a larger Bay Area footprint, along with plans to support higher-density rack deployments and broader liquid-cooling adoption as AI factories scale.SMCI Guides for Higher Revenues on Deferred ShipmentsFor the fourth quarter of fiscal 2026, SMCI expects net sales between $11 billion and $12.5 billion. The Zacks Consensus Estimate for SMCI’s fourth-quarter fiscal 2026 revenues is pegged at $11.66 billion, indicating a year-over-year rise of 102.6%.The company guided non-GAAP diluted earnings per share of 65 cents to 79 cents, reflecting expected customer mix and ongoing execution on large programs. The Zacks Consensus Estimate for SMCI’s fourth-quarter fiscal 2026 earnings is pegged at 61 cents per share, indicating a year-over-year rise of 10.7%.For full-year fiscal 2026, SMCI raised its revenue outlook to a range of $38.9 billion to $40.4 billion. The Zacks Consensus Estimate for SMCI’s fiscal 2026 revenues is pegged at $41.6 billion per share, indicating a year-over-year rise of 89.1%.Management’s outlook assumes a non-GAAP tax rate of 20.4%, with fully diluted share counts of 695 million shares for GAAP and 712 million shares for non-GAAP results.Zacks Rank and Stocks to ConsiderCurrently, SMCI carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom AVGO, Celestica CLS and Samsara IOT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of Broadcom have gained 21.7% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by a penny over the past 30 days, indicating an increase of 68% year over year.Shares of Celestica have rallied 41.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $9.85 per share, up $1.01 over the past seven days, indicating an increase of 62.8% year over year.Samsara shares have lost 14% year to date. The Zacks Consensus Estimate for IOT’s fiscal 2027 earnings is pegged at 68 cents per share, up 11 cents over the past 60 days, indicating an increase of 21.4% year over year.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks