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Super Micro Computer, Inc. (SMCI - Free Report) is set to report its third-quarter fiscal 2026 results on May 5, 2026, after market close.
For the fiscal third quarter, the company expects revenues to be $12.3 billion. The Zacks Consensus Estimate is pegged at $12.4 billion, indicating growth of 168.75% from the year-ago quarter’s reported value.
Super Micro Computer expects non-GAAP earnings per share of 60 cents. The Zacks Consensus Estimate for earnings is pegged at 63 cents per share, suggesting a rise of 103.2% from the year-ago reported figure. The figure has remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
SMCI’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing once, delivering an average surprise of 15.58%.
Our proven model does not conclusively predict an earnings beat for Tyler Technologies this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Though Tyler carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Super Micro Computer’s third-quarter fiscal 2026 top line is likely to have benefited from the momentum in its rack-scale compute architecture. Since SMCI is on track to scale up its rack capacity to 6,000 racks per month, including 3,000 direct liquid cooling racks by the end of fiscal 2026, as the demand for these products rises to support AI and HPC workloads. It is likely to have driven the top line in the third quarter of fiscal 2026.
SMCI’s Data Center Building Block Solutions (DCBBS) are in high demand at present. In the previous quarter, the DCBBS contributed 4% of profits and is expected to reach double digits by 2026, implying higher adoption in the third quarter of fiscal 2026. Demand for SMCI’s products from OEM appliance and the large data center customers is likely to have driven the top line in the to-be-reported quarter.
SMCI’s partnerships with vendors like NVIDIA (NVDA - Free Report) and Advanced Micro Devices position the company to deliver the latest GPU-powered platforms, which remain in high demand among cloud providers and sovereign AI projects. Expansion in Europe, Asia and the Middle East offers additional growth avenues too. This is expected to have benefited SMCI in the to-be-reported quarter.
SMCI has entered the client-edge consumer AI markets. SMCI’s expertise in AI-optimized servers, GPUs and energy-efficient system design will help it deliver powerful yet compact solutions for PCs, edge AI and embedded applications, challenging the incumbents. This new growth direction has increased SMCI’s total addressable market massively and is likely to have positively impacted SMCI in the third quarter of fiscal 2026.
However, this massive demand for SMCI’s AI rack systems has pushed SMCI to ramp up its operations in the past few months, causing working capital and inventory problems, allied with a lengthened cash conversion cycle. SMCI’s concentration with larger customers had earlier squeezed its margin and increased its receivables. These factors are likely to have remained a concern from the investors’ point of view in the to-be-reported quarter.
SMCI’s Price Performance & Stock Valuation
Super Micro Computer shares have lost 6.4% over the past year compared with the Zacks Computer – Storage Devices industry’s decline of 148.2%.
SMCI YTD Performance Chart
Image Source: Zacks Investment Research
Now, let us look at the value Super Micro Computer offers to its investors at current levels. Currently, SMCI is trading at a discount with a forward 12-month price-to-sales (P/S) of 0.34X compared with the industry’s 3.17X.
SMCI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Investment Thesis for SMCI Stock
SMCI is emerging as a dominant force in AI infrastructure on the back of its liquid cooling technology, scalable manufacturing and broad AI product portfolio that is promising enough to drive sustained long-term growth. The latest announcement of ramping up the production of its latest AI data server solution that features NVIDIA’s Blackwell platform will boost Super Micro Computer’s revenue growth in the upcoming quarters.
Super Micro Computer’s new DCBBS simplifies how data centers are built. It combines servers, racks, power systems, cooling and networking into a complete package. This helps customers save up to 30% in total costs and build data centers faster, sometimes in weeks instead of months. The offering includes the company’s latest liquid cooling technology (DLC-2), which reduces power and water use.
SMCI has introduced a range of compact, energy-efficient Edge AI systems specifically built for environments where space, power and cooling are constrained. These products open a new market for SMCI, enabling it to generate new revenue sources. SMCI has also launched Super AI Station, Supermicro SYS-542T-2R, Supermicro AI PC, Supermicro Edge AI Systems and Supermicro's Fanless Compact Edge System with SMCI integrated NVIDIA Jetson Orin NX AI computer. This move into the client, edge and consumer market has brought it to a crossroads with the existing players like HP Inc. (HPQ - Free Report) and Dell Technologies (DELL - Free Report) .
HP has a range of AI-based computing devices, like HP’s OmniBook and EliteBook series, which offer multiple Next-Generation AI PC solutions. Dell has numerous workstations that offer AI capabilities. Dell’s workstations are XPS 13, Inspiron 14 Plus, Inspiron 14, Latitude 7455 and Latitude 5455. Lenovo has AI PCs in some versions of ThinkPad, Yoga, IdeaPad and Lenovo Legion.
Super Micro Computer is building and expanding production facilities worldwide, which makes its global footprint help the company respond to local demand, avoid tariffs and reduce delivery time. However, the company has suffered from shrinking gross margins for the past four quarters due to increased price competition, inventory write-downs of older-generation GPUs, and rising costs tied to product complexity and expanded services.
Conclusion: Hold SMCI Stock Now
Super Micro Computer is facing several near-term challenges while pursuing long-term growth across server, storage and cooling products. The company is entering Client, Edge and Consumer AI Markets, expanding its TAM. Considering these factors, we suggest that investors should retain SMCI stock for now.
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Should You Hold or Fold Super Micro Computer Stock Before Q3 Earnings?
Key Takeaways
Super Micro Computer, Inc. (SMCI - Free Report) is set to report its third-quarter fiscal 2026 results on May 5, 2026, after market close.
For the fiscal third quarter, the company expects revenues to be $12.3 billion. The Zacks Consensus Estimate is pegged at $12.4 billion, indicating growth of 168.75% from the year-ago quarter’s reported value.
Super Micro Computer expects non-GAAP earnings per share of 60 cents. The Zacks Consensus Estimate for earnings is pegged at 63 cents per share, suggesting a rise of 103.2% from the year-ago reported figure. The figure has remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
SMCI’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing once, delivering an average surprise of 15.58%.
Super Micro Computer, Inc. Price and EPS Surprise
Super Micro Computer, Inc. price-eps-surprise | Super Micro Computer, Inc. Quote
Earnings Whispers for SMCI
Our proven model does not conclusively predict an earnings beat for Tyler Technologies this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Though Tyler carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note Ahead of SMCI’s Q3 Results
Super Micro Computer’s third-quarter fiscal 2026 top line is likely to have benefited from the momentum in its rack-scale compute architecture. Since SMCI is on track to scale up its rack capacity to 6,000 racks per month, including 3,000 direct liquid cooling racks by the end of fiscal 2026, as the demand for these products rises to support AI and HPC workloads. It is likely to have driven the top line in the third quarter of fiscal 2026.
SMCI’s Data Center Building Block Solutions (DCBBS) are in high demand at present. In the previous quarter, the DCBBS contributed 4% of profits and is expected to reach double digits by 2026, implying higher adoption in the third quarter of fiscal 2026. Demand for SMCI’s products from OEM appliance and the large data center customers is likely to have driven the top line in the to-be-reported quarter.
SMCI’s partnerships with vendors like NVIDIA (NVDA - Free Report) and Advanced Micro Devices position the company to deliver the latest GPU-powered platforms, which remain in high demand among cloud providers and sovereign AI projects. Expansion in Europe, Asia and the Middle East offers additional growth avenues too. This is expected to have benefited SMCI in the to-be-reported quarter.
SMCI has entered the client-edge consumer AI markets. SMCI’s expertise in AI-optimized servers, GPUs and energy-efficient system design will help it deliver powerful yet compact solutions for PCs, edge AI and embedded applications, challenging the incumbents. This new growth direction has increased SMCI’s total addressable market massively and is likely to have positively impacted SMCI in the third quarter of fiscal 2026.
However, this massive demand for SMCI’s AI rack systems has pushed SMCI to ramp up its operations in the past few months, causing working capital and inventory problems, allied with a lengthened cash conversion cycle. SMCI’s concentration with larger customers had earlier squeezed its margin and increased its receivables. These factors are likely to have remained a concern from the investors’ point of view in the to-be-reported quarter.
SMCI’s Price Performance & Stock Valuation
Super Micro Computer shares have lost 6.4% over the past year compared with the Zacks Computer – Storage Devices industry’s decline of 148.2%.
SMCI YTD Performance Chart
Image Source: Zacks Investment Research
Now, let us look at the value Super Micro Computer offers to its investors at current levels. Currently, SMCI is trading at a discount with a forward 12-month price-to-sales (P/S) of 0.34X compared with the industry’s 3.17X.
SMCI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Investment Thesis for SMCI Stock
SMCI is emerging as a dominant force in AI infrastructure on the back of its liquid cooling technology, scalable manufacturing and broad AI product portfolio that is promising enough to drive sustained long-term growth. The latest announcement of ramping up the production of its latest AI data server solution that features NVIDIA’s Blackwell platform will boost Super Micro Computer’s revenue growth in the upcoming quarters.
Super Micro Computer’s new DCBBS simplifies how data centers are built. It combines servers, racks, power systems, cooling and networking into a complete package. This helps customers save up to 30% in total costs and build data centers faster, sometimes in weeks instead of months. The offering includes the company’s latest liquid cooling technology (DLC-2), which reduces power and water use.
SMCI has introduced a range of compact, energy-efficient Edge AI systems specifically built for environments where space, power and cooling are constrained. These products open a new market for SMCI, enabling it to generate new revenue sources. SMCI has also launched Super AI Station, Supermicro SYS-542T-2R, Supermicro AI PC, Supermicro Edge AI Systems and Supermicro's Fanless Compact Edge System with SMCI integrated NVIDIA Jetson Orin NX AI computer. This move into the client, edge and consumer market has brought it to a crossroads with the existing players like HP Inc. (HPQ - Free Report) and Dell Technologies (DELL - Free Report) .
HP has a range of AI-based computing devices, like HP’s OmniBook and EliteBook series, which offer multiple Next-Generation AI PC solutions. Dell has numerous workstations that offer AI capabilities. Dell’s workstations are XPS 13, Inspiron 14 Plus, Inspiron 14, Latitude 7455 and Latitude 5455. Lenovo has AI PCs in some versions of ThinkPad, Yoga, IdeaPad and Lenovo Legion.
Super Micro Computer is building and expanding production facilities worldwide, which makes its global footprint help the company respond to local demand, avoid tariffs and reduce delivery time. However, the company has suffered from shrinking gross margins for the past four quarters due to increased price competition, inventory write-downs of older-generation GPUs, and rising costs tied to product complexity and expanded services.
Conclusion: Hold SMCI Stock Now
Super Micro Computer is facing several near-term challenges while pursuing long-term growth across server, storage and cooling products. The company is entering Client, Edge and Consumer AI Markets, expanding its TAM. Considering these factors, we suggest that investors should retain SMCI stock for now.