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Super Micro Computer Q4 Earnings Miss Estimates, Revenues Rise Y/Y
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Key Takeaways
Super Micro Computer posted Q4 earnings of $0.41 per share, down 34.9% year over year.
Quarterly revenues of $5.76B rose 8.5% year over year but missed analyst expectations.
SMCI forecasts fiscal 2026 revenues of at least $33B, with Q1 sales seen at $6B-$7B.
Super Micro Computer (SMCI - Free Report) reported fourth-quarter fiscal 2025 non-GAAP earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 6.8%. The bottom line declined 34.9% on a year-over-year basis.
Super Micro Computer’s fourth-quarter fiscal 2025 revenues of $5.76 billion missed the Zacks Consensus Estimate by 3.82%. The top line improved 8.5% year over year and 25.2% sequentially.
Due to the weaker-than-expected performance, SMCI stock plummeted 16.73% in the pre-market hours on Wednesday.
Super Micro Computer’s Q4 Performance in Detail
Coming to SMCI’s business segments, revenues from Server and storage systems (97.6% of total revenues) increased 10% year over year to $5.62 billion. Subsystems and accessories (2.4% of total sales) decreased 48% to $139 million.
Super Micro Computer, Inc. Price, Consensus and EPS Surprise
By geography, the United States accounted for 38% of the total sales, which decreased 33% year over year. Asia accounted for 42% of the fiscal fourth quarter revenues, which reflects a year-over-year increase of 91%.
Revenues from Europe accounted for 15% of the total revenues, which reflects a year-over-year increase of 66%. Revenues from the Rest of the World accounted for 5% of the total revenues, which increased 53% on a year-over-year basis.
By customer vertical, Enterprise/Channel revenues totaled $2.1 billion, accounting for 36% of total sales. This reflects a year-over-year increase of 7% and strong sequential growth of 6%, with the product mix shifting toward OEM & large datacenter, which surged 40% quarter over quarter.
OEM Appliance and Large Data Center verticals contributed $3.7 billion, representing 63% of total fourth-quarter fiscal 2025 revenues. The Emerging 5G, Telco, Edge, and IoT vertical represented 1% of total revenues.
SMCI’s Operating Details
SMCI’s non-GAAP gross margin of 9.6% reflects a decline of 70 basis points year over year and 10 basis points sequentially. This decline was primarily due to unfavorable product and customer mix, including heavier hyperscale and GPU rack shipments with lower margins.
Non-GAAP operating expenses increased 29% year over year while declining 11% sequentially to $239 million. The operating expenses increased as SMCI is spending heavily on the development of next-generation AI systems and its Datacenter Building Block Solutions, along with second-generation Direct Liquid Cooling technology.
Furthermore, the operating expenses increased as the company is expanding its production capacity in Malaysia, Taiwan, Europe, and the United States. As SMCI scaled sales, R&D, and support, this increased operating expenses.
SMCI’s Balance Sheet & Cash Flow
As of June 30, 2025, total cash and cash equivalents were $5.17 billion, up from $2.54 billion in the previous quarter.
Operating and free cash flow for the reported quarter were $864 million and $841 million, respectively.
Semtech Offers Q1 Guidance
For first-quarter fiscal 2026, SMCI expects net sales of $6 billion to $7 billion. SMCI’s non-GAAP earnings are expected in the range of 40-52 cents per share.
For fiscal 2026, SMCI expects revenues to be $33 billion.
Zacks Rank & Stocks to Consider
SMCI currently has a Zacks Rank #5 (Strong Sell).
Alkami Technology (ALKT - Free Report) , Arista Networks (ANET - Free Report) and Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. While ANET and ALKT carry a Zacks Rank #2 (Buy) each, APH sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alkami Technology shares have lost 34.5% year to date. The Zacks Consensus Estimate for Alkami Technology’s full-year 2025 earnings is pegged at 15 cents per share, up by 2 cents over the past 30 days, implying growth of 51.7% from the year-ago quarter’s reported figure.
Arista Networks shares have lost 11.9% year to date. The Zacks Consensus Estimate for ANET’s full-year fiscal 2025 earnings is pegged at 65 cents per share, up by a penny in the past 30 days, indicating year-over-year growth of 13.66%.
Amphenol shares have gained 45.1% year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $2.69 per share in the past seven days, indicating year-over-year growth of 42.33%.
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Super Micro Computer Q4 Earnings Miss Estimates, Revenues Rise Y/Y
Key Takeaways
Super Micro Computer (SMCI - Free Report) reported fourth-quarter fiscal 2025 non-GAAP earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 6.8%. The bottom line declined 34.9% on a year-over-year basis.
Super Micro Computer’s fourth-quarter fiscal 2025 revenues of $5.76 billion missed the Zacks Consensus Estimate by 3.82%. The top line improved 8.5% year over year and 25.2% sequentially.
Due to the weaker-than-expected performance, SMCI stock plummeted 16.73% in the pre-market hours on Wednesday.
Super Micro Computer’s Q4 Performance in Detail
Coming to SMCI’s business segments, revenues from Server and storage systems (97.6% of total revenues) increased 10% year over year to $5.62 billion. Subsystems and accessories (2.4% of total sales) decreased 48% to $139 million.
Super Micro Computer, Inc. Price, Consensus and EPS Surprise
Super Micro Computer, Inc. price-consensus-eps-surprise-chart | Super Micro Computer, Inc. Quote
By geography, the United States accounted for 38% of the total sales, which decreased 33% year over year. Asia accounted for 42% of the fiscal fourth quarter revenues, which reflects a year-over-year increase of 91%.
Revenues from Europe accounted for 15% of the total revenues, which reflects a year-over-year increase of 66%. Revenues from the Rest of the World accounted for 5% of the total revenues, which increased 53% on a year-over-year basis.
By customer vertical, Enterprise/Channel revenues totaled $2.1 billion, accounting for 36% of total sales. This reflects a year-over-year increase of 7% and strong sequential growth of 6%, with the product mix shifting toward OEM & large datacenter, which surged 40% quarter over quarter.
OEM Appliance and Large Data Center verticals contributed $3.7 billion, representing 63% of total fourth-quarter fiscal 2025 revenues. The Emerging 5G, Telco, Edge, and IoT vertical represented 1% of total revenues.
SMCI’s Operating Details
SMCI’s non-GAAP gross margin of 9.6% reflects a decline of 70 basis points year over year and 10 basis points sequentially. This decline was primarily due to unfavorable product and customer mix, including heavier hyperscale and GPU rack shipments with lower margins.
Non-GAAP operating expenses increased 29% year over year while declining 11% sequentially to $239 million. The operating expenses increased as SMCI is spending heavily on the development of next-generation AI systems and its Datacenter Building Block Solutions, along with second-generation Direct Liquid Cooling technology.
Furthermore, the operating expenses increased as the company is expanding its production capacity in Malaysia, Taiwan, Europe, and the United States. As SMCI scaled sales, R&D, and support, this increased operating expenses.
SMCI’s Balance Sheet & Cash Flow
As of June 30, 2025, total cash and cash equivalents were $5.17 billion, up from $2.54 billion in the previous quarter.
Operating and free cash flow for the reported quarter were $864 million and $841 million, respectively.
Semtech Offers Q1 Guidance
For first-quarter fiscal 2026, SMCI expects net sales of $6 billion to $7 billion. SMCI’s non-GAAP earnings are expected in the range of 40-52 cents per share.
For fiscal 2026, SMCI expects revenues to be $33 billion.
Zacks Rank & Stocks to Consider
SMCI currently has a Zacks Rank #5 (Strong Sell).
Alkami Technology (ALKT - Free Report) , Arista Networks (ANET - Free Report) and Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. While ANET and ALKT carry a Zacks Rank #2 (Buy) each, APH sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alkami Technology shares have lost 34.5% year to date. The Zacks Consensus Estimate for Alkami Technology’s full-year 2025 earnings is pegged at 15 cents per share, up by 2 cents over the past 30 days, implying growth of 51.7% from the year-ago quarter’s reported figure.
Arista Networks shares have lost 11.9% year to date. The Zacks Consensus Estimate for ANET’s full-year fiscal 2025 earnings is pegged at 65 cents per share, up by a penny in the past 30 days, indicating year-over-year growth of 13.66%.
Amphenol shares have gained 45.1% year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $2.69 per share in the past seven days, indicating year-over-year growth of 42.33%.