Super Micro Computer, Inc. shares rose 9.5% to close at $35.55 on Oct. 21 after the server maker raised its preliminary first-quarter fiscal 2027 sales outlook, citing stronger demand for AI platforms.
For the quarter ended Sept. 30, 2026, Super Micro now estimates revenue of $18.5 billion to $19.5 billion, up from its previous guidance of $14.5 billion to $15.5 billion. Both ends of the forecast increased by $4 billion. The company’s earlier sales outlook covered the same quarter.
The company also raised its estimated gross margin to 12.0% to 12.5%, from 10.4% to 10.8%, attributing the higher range mainly to customer and product mix. Even with the revision, the estimate is 5 to 5.5 percentage points below the 17.5% gross margin Super Micro reported for the quarter ended June 30, the preceding quarter.
Super Micro’s full-year fiscal 2026 sales were $39.1 billion. Its gross margin for the year was 10.8%, down from 11.1% in fiscal 2025. The company said competitive pricing to gain market share, customer and product mix, and manufacturing expenses contributed to the annual decline.
The company reported $6.81 billion in cash used by operating activities in fiscal 2026. It attributed the decline in operating cash flow largely to inventory purchases, customer receivables and operating spending.
Super Micro said the September-quarter estimates are unaudited and may change as it completes its financial statements; its auditor has not performed procedures on them. The company scheduled a call to discuss final results for Nov. 3 at 5 p.m. ET.
