NEW YORK, July 21, 2026, 18:08 EDT – Supermicro shares climbed as a preliminary margin adjustment pointed to a $847 million increase in gross profit.
- U.S. cash trading ended, but after-hours activity continued.
- The stock was at $29.90 at 18:02 EDT, gaining 17.3% in after-hours trading.
- The company projected a preliminary gross margin of 15%–17% for the fourth quarter. Complete results are scheduled for release on August 11.
Shares of Super Micro Computer NASDAQ:SMCI jumped after the close on Tuesday. The company’s preliminary margin reset suggested an additional $847 million in quarterly gross profit, based on the lower end of its guidance.
With revenue at $11.0 billion, gross profit at the midpoint comes to $1.76 billion. The earlier margin outlook indicated $913 million. This marks a 93% rise.
Sales lagged expectations. Revenue is projected to be at the lower end of the $11.0 billion to $12.5 billion range. Analysts anticipated $11.67 billion. If revenue comes in at exactly $11.0 billion, it would be 5.7% below the analyst consensus.
The figures below are based on revenue of $11.0 billion. All estimates provided by the company are still preliminary and have not been audited.
| Fourth-quarter measure | Prior guidance | Preliminary update | Illustrative change at $11.0 billion |
|---|---|---|---|
| Revenue | $11.0B–$12.5B | Close to lower bound | Roughly 5.7% under consensus at minimum |
| Gross margin | 8.2%–8.4% | 15.0%–17.0% | Increase of 6.6–8.8 percentage points |
| Gross profit | $902M–$924M | $1.65B–$1.87B | Increase by $726M–$968M |
| Midpoint gross profit | $913M | $1.76B | Increase by $847M, or 93% |
| New orders | Not stated | Over $60B | Above 5.4 times the quarter’s revenue |
The company attributed the margin increase to “a favorable customer and product mix.” It did not disclose a breakdown by customer. Repeatability has not yet been established. SEC
Orders provided another boost. New orders topped $60 billion in the quarter, surpassing the revenue floor by more than 5.4 times.
However, orders have not converted into sales yet. The company cautioned that some orders might not reflect binding commitments and could be subject to cancellation or postponement.
Capital remains important. Supermicro, in June, announced plans for $7 billion in equity and equity-linked financing, aiming to purchase components supporting approximately $39 billion in AI-server orders from over 20 clients.
The advance on Tuesday reversed earlier losses. Between July 13 and July 17, the shares declined by 12.6%. After hours, the price was $29.90, representing a gain of 23.7% compared with Friday’s closing level.
The stock advanced 7.0% during the regular session, with after-hours trading pushing it up an additional 17.3%. In combination, shares finished 25.5% higher than where they closed on Monday.
The upcoming results are set for August 11, beyond the current week. Investors are expected to look for insights regarding order conversion, customer concentration, and cash requirements.
Significant risks persist. An independent board is reviewing reported export-control matters. The review outcome may impact guidance, initial numbers, or past statements.
These estimates have neither been reviewed nor compiled by the auditor of the company. Actual results could vary.
The strength of the rally depends on margin quality rather than faster sales growth. August will be key in determining if the favourable mix continues.
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