SAN JOSE, California, August 12, 2026, 18:10 EDT — The US regular session had ended.
- Super Micro Computer finished Wednesday up 19.02% at $37.61.
- Revenue guidance for fiscal 2027 was set at $65 billion to $72 billion.
- Q1 margin outlook suggests reduced gross profit, even as sales rise significantly.
Shares of Super Micro Computer NASDAQ:SMCI surged 19.02% to close at $37.61 on Wednesday. The AI server manufacturer projected much higher fiscal 2027 revenue than analysts anticipated. Around 164.9 million shares changed hands during the session.
The surge reflected a strong demand indicator. However, profits in the following quarter may not look as strong. Using the management’s midpoint guidance, adjusted gross profit comes to approximately $1.59 billion—around 18.6% lower than the previous quarter.
Super Micro posted fourth-quarter revenue of $11.1 billion. GAAP gross margin was 17.5%, and net income advanced to $1.18 billion. All metrics saw significant increases versus both prior periods.
| Q4 fiscal 2026 performance | Q4 FY2026 | Q3 FY2026 | Q4 FY2025 |
|---|---|---|---|
| Net revenue | $11.1bn | $10.2bn | $5.8bn |
| GAAP gross profit margin | 17.5% | 9.9% | 9.5% |
| GAAP net earnings | $1.178bn | $483m | $195m |
| GAAP diluted EPS | $1.62 | $0.72 | $0.31 |
Super Micro Chief Executive Charles Liang stated that the company “generated more than $60 billion in new orders” and began fiscal 2027 carrying a record backlog. Over the year, the company added several hundred new enterprise and other customers. Company statement
The company projected first-quarter revenue of $14.5 billion to $15.5 billion, with the midpoint representing a 35.1% jump from fourth-quarter revenue. Adjusted gross margin is forecast in the range of 10.4% to 10.8%.
| Profit bridge | Q4 FY2026 actual | Q1 FY2027 midpoint | Calculated change |
|---|---|---|---|
| Revenue | $11.1bn | $15.0bn | up 35.1% |
| Adjusted gross margin | 17.6% | 10.6% | down 7.0 points |
| Implied adjusted gross profit | $1.954bn | $1.590bn | down 18.6% |
This difference reveals what investors are really betting on. They regard the fourth-quarter margin increase as a one-off event, focusing instead on revenue growth and order conversion. The midpoint for full-year guidance is $68.5 billion, between $65 billion and $72 billion. That midpoint is 75.2% higher than fiscal 2026 revenue, which stands at $39.1 billion.
The overall trend boosts the demand outlook. CoreWeave NASDAQ:CRWV climbed 19.3%, and Dell Technologies NYSE:DELL advanced roughly 5%. According to Reuters, CoreWeave and Super Micro each hit their strongest levels since June.
Analysts increased their target prices, though consensus was elusive. Citi and Wedbush maintained Neutral ratings, while Needham and Rosenblatt held their Buy stances. The four price targets suggest potential gains ranging from 3.7% to 35.6% over Wednesday’s closing price.
| Brokerage action, Aug. 12 | Rating | New target | Upside from $37.61 |
|---|---|---|---|
| Citigroup | Neutral | $39 | 3.7% |
| Wedbush | Neutral | $40 | 6.4% |
| Needham | Buy | $46 | 22.3% |
| Rosenblatt | Buy | $51 | 35.6% |
The broader consensus stays conservative. Of the 18 analysts surveyed, two rate it Sell, 12 assign Hold, and four recommend Buy. The group’s mean price target of $41.80 suggests an 11.1% potential gain, considered limited following Wednesday’s rally.
Risks: The primary challenge is executing at scale. Delays from customers have already shifted some power, cooling and networking revenue out of the fourth quarter. If backlog conversion slows further, meeting the revenue outlook could be difficult. Additionally, an unfavourable customer mix may keep margins at the lower bound.
First-quarter results will challenge both assertions simultaneously. Revenue needs to pick up pace as adjusted gross profit takes on a significant margin adjustment. The stock’s upcoming direction might hinge more on the speed of gross-profit recovery than on revenue growth.
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