Shares of Super Micro Computer (NASDAQ:SMCI) dropped more than 16% in premarket trading on Wednesday after the company missed earnings and revenue expectations for its fiscal fourth quarter and issued guidance for the current quarter that fell short of Wall Street estimates.
Adjusted earnings per share for the reported quarter were $0.41, below analyst estimates of $0.44.
Revenue came in at $5.8 billion, shy of the $5.96 billion consensus.
For the first quarter of fiscal 2026 (FY26), Super Micro forecast earnings between $0.40 and $0.52 per share, with revenue projected between $6 billion and $7 billion—both figures trailing Wall Street expectations of $0.59 and $6.59 billion, respectively.
Management expects the Q1 gross margin to remain in line with the 9.5% posted in Q4, which itself fell short of the Street’s 10% forecast.
For the full year, SMCI anticipates sales around $33 billion, exceeding the consensus estimate of $30.1 billion. The company projects revenue growth to accelerate to roughly 50% in FY26, up from 47% in FY25.
“Margin weakness will be a focal point,” Raymond James analysts commented. “Despite this, the revenue growth outlook remains robust; management forecast growth accelerating to 50% in FY26—better than we envisioned.”
“Investors will not be satisfied with profitless prosperity, but we believe an improving customer and product mix will lead to margin improvement,” they added.
SMCI has benefited from increasing demand for servers optimized for artificial intelligence workloads, especially among cloud providers and large enterprises.
Full-year revenue rose 47%, driven by the expansion of its AI product portfolio and data center deployments.
Super Micro Computer stock price
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