Super Micro Computer, Inc. raised its preliminary gross margin forecast for its fiscal first quarter, but the new range remains below the prior quarter’s result even as the server maker expects sharply higher sales.
In an Oct. 20 update, Supermicro estimated a gross margin of 12% to 12.5% for the quarter ended Sept. 30, up from its earlier forecast of 10.4% to 10.8%. It reported a 17.5% margin for the quarter ended June 30.
Supermicro said customer and product mix drove the revised margin estimate. Its annual filing said competitive pricing aimed at gaining market share, higher manufacturing expenses and changes in customer and product mix had weighed on gross margin for fiscal 2026.
Supermicro’s higher sales forecast puts revenue for the September quarter at $18.5 billion to $19.5 billion, compared with its previous range of $14.5 billion to $15.5 billion. The company cited increased demand for AI platforms. It recorded about $5.02 billion in sales in the comparable quarter a year earlier and $11.1 billion in the June quarter.
Shares were up 11.3% in after-hours trading at the time of Reuters’ report on the update. The revenue and margin estimates have not been audited or reviewed by Supermicro’s auditor and may change as the company completes its accounts. The update included no estimate for net income or earnings per share.
Supermicro has scheduled a call on its full quarterly results for Nov. 3 at 5 p.m. ET.
