SAN JOSE, California, September 3, 2026, 03:46 PDT — Super Micro’s shares fell 1.8% after the company’s $6.8 billion cash outflow brought fresh scrutiny to its growth outlook.
- Super Micro shares were at $36.34, falling 1.8%, as of 06:44 EDT.
- Revenue for fiscal 2026 increased by 77.8%, but operating cash flow declined, reaching negative $6.81 billion.
- The premarket share price is 11.1 times the projected diluted GAAP earnings for fiscal 2026.
Shares of Super Micro Computer, Inc. NASDAQ:SMCI dropped 1.8% to $36.34 in premarket trade at 06:44 EDT on Thursday. The stock had risen 0.8% during Wednesday’s session Yahoo Finance.
The drop brings the stock to 11.1 times projected fiscal 2026 diluted GAAP earnings. Revenue climbed nearly 78% in that period. However, working capital used significantly more cash than the company generated.
Trading volume on Wednesday totaled 32.9 million shares, accounting for 58% of the daily average over the past three months. Dollar turnover stood at roughly $1.2 billion. Despite robust activity in absolute terms, the level did not surpass typical volumes seen at Super Micro.
Sales for fiscal 2026 climbed 77.8% to $39.06 billion. Net income surged to $2.23 billion, more than doubling. Gross profit advanced 74.0% to reach $4.23 billion fiscal 2026 Form 10-K.
Fiscal 2026 operating scale
Year-over-year change; GAAP figures
Source: Super Micro fiscal 2026 Form 10-K, filed August 31, 2026
Gross margin for the full year slipped 24 basis points to 10.82%. The margin in the June quarter surged to 17.5%, compared with 9.9% in March. Continued improvement at this pace is needed to sustain the earnings multiple.
Super Micro Chief Executive Charles Liang stated that the company had “generated more than $60 billion in new orders.” Liang also pointed to a record-high backlog heading into fiscal 2027 August 11 earnings release.
The company projects revenue for the September quarter between $14.5 billion and $15.5 billion, with the midpoint of $15 billion representing a 34.9% increase from June-quarter revenue. Management’s guidance for GAAP diluted earnings is in the range of $0.89 to $0.98 per share.
The company projects revenue for fiscal 2027 in a range between $65 billion and $72 billion. The midpoint suggests growth of 75.4%. Achieving that forecast puts greater focus on converting sales into cash.
Operating cash flow shifted to negative $6.81 billion for fiscal 2026, after being positive $1.66 billion in the previous year. Capital expenditure stayed modest at $162 million.
The working-capital gap
Fiscal 2026 year-end balances and cash flow; U.S. dollars
Inventory increased by 175.5% to reach $12.90 billion. Receivables jumped 177.9% to $6.13 billion. Combined, the growth of both surpassed $12.1 billion.
Cash stood at $7.52 billion as of the end of June. The firm posted $8.7 billion in bank debt and convertible notes. Robust liquidity was accompanied by increased debt financing.
The June quarter presents a contrasting picture. Operations produced $747 million, with capital expenditures and investments amounting to $25 million. However, a single quarter does not offset the yearly shortfall.
At Wednesday’s close, the market capitalization stood at $24.3 billion, representing 0.62 times projected sales for fiscal 2026. This ratio leaves minimal buffer for a slowdown in deployments and values potential sustained improvements in cash flow.
Risks: Significant orders may move across quarters. Variations in component availability, customer concentration, funding requirements, and margin fluctuations can affect both when revenue is recognized and how cash is generated.
The upcoming test for operations is set for the September quarter. Investors expect the projected rise in sales to materialize, but without another similar increase in working capital.
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