Super Micro Shares Rise Premarket as Q1 Revenue Nearly Quadruples to $19.9 Billion and It Lifts Its Outlook

Shares of Super Micro Computer rose in premarket trading on Wednesday, November 4, 2026, after the server maker reported fiscal first-quarter revenue that nearly quadrupled from a year earlier, beat Wall Street forecasts and issued second-quarter and full-year outlooks above analysts' estimates.

The San Jose, California-based company, known as Supermicro, said in its results release on Tuesday, November 3, that net sales for the quarter ended September 30, 2026, were $19.9 billion, compared with $11.1 billion in the prior quarter and $5.0 billion in the same quarter a year earlier.

Results versus estimates

Revenue of $19.95 billion topped the analysts' average estimate of $16.39 billion, according to LSEG data cited by Reuters in a report republished by Financial Newsletter. Adjusted earnings of $1.81 per share compared with estimates of $1.23.

The results also came in above a preliminary update in which the company had projected revenue of $18.5 billion to $19.5 billion, Investing.com reported. Reuters said gross margin was ahead of the preliminary estimate of 12.0% to 12.5%.

Supermicro reported net income of $1.594 billion, or $1.75 per diluted share, compared with $168 million, or 26 cents per share, a year earlier. GAAP gross margin was 12.7%, up from 9.3% a year earlier but down from 17.5% in the fourth quarter of fiscal 2026. On a non-GAAP basis, gross margin was 12.8%, compared with 9.5% a year earlier, and diluted earnings per share were $1.81, up from 35 cents.

The company said the figures are preliminary and unaudited because its financial closing procedures for the quarter were not yet complete, and that final results could differ.

Higher outlook

For the fiscal second quarter ending December 31, 2026, Supermicro forecast net sales of $19.5 billion to $21.5 billion. Reuters said analysts had expected $17.14 billion. The company projected GAAP earnings of $1.59 to $1.83 per diluted share and non-GAAP earnings of $1.66 to $1.90 per share.

For the full fiscal year 2027, the company now expects net sales of $72.0 billion to $82.0 billion. Reuters said that compares with a prior forecast of $65.0 billion to $72.0 billion and an LSEG consensus estimate of $69.17 billion.

"Supermicro's transformation into a Total AI and IT Datacenter Solution provider continues to accelerate, delivering record revenue of $19.9 billion for the first quarter fiscal 2027," founder, president and CEO Charles Liang said in the release.

Cash flow and balance sheet

The company said cash flow used in operations was $434 million in the quarter, with capital expenditures and investments of $47 million. As of September 30, it had $6.9 billion in cash and cash equivalents and $8.6 billion in bank debt and convertible notes.

Raymond James analysts wrote that customer prepayments funded most of the working capital build in the quarter, according to Investing.com, which said the firm reiterated an Outperform rating and raised its price target to $65 from $48. The analysts also listed customer concentration and an export control investigation among the key debates for the stock.

Share price snapshot

Supermicro shares rose more than 9% in extended trading on Tuesday, Reuters reported. The stock closed Tuesday's regular session at $31.39. By about 7:12 a.m. ET on Wednesday, it was trading at about $32.72 in premarket activity, roughly 4.2% above that close, according to Yahoo Finance data. Premarket prices are thinly traded snapshots and can change significantly before and after the 9:30 a.m. ET open.

The rebound follows a difficult stretch for the stock. Yahoo Finance reported that Supermicro shares fell about 27% over the past month after research firm Gartner published a report saying 80% of neocloud companies would cease operations by 2030 because of a lack of return on invested capital. The stock was down 38% over the past 12 months as of Tuesday, Yahoo Finance said. Neocloud operator CoreWeave is a Supermicro customer.

Compliance and management

Reuters noted that Supermicro appointed former Western Digital executive Mark Long as chief financial officer last month, nearly two years after it began searching for the role amid concerns about its financial and accounting practices. The company has also faced scrutiny after a contractor pleaded guilty last month to charges related to illegally exporting servers containing advanced Nvidia AI chips to China. Long told Reuters the company is embedding compliance into its culture and expanding resources to support internal controls.