Super Micro Computer, Inc. (SMCI), Financial Analysis
Insights derived from analysing SEC filings. Independent analysis, not a publication of the SEC.
Figures are read from the Forms 10-K for fiscal years 2021, 2023, 2024, 2025 and 2026, the Forms 10-Q for the first three quarters of fiscal years 2023, 2024, 2025 and 2026, the 59 Forms 8-K filed between January 2024 and August 2026 together with their quarterly earnings exhibits 99.1, and the definitive proxy statement of 3 March 2026 with the Item 5.07 voting results of 20 April 2026, on the record for central index key 1375365, together with the comparable annual reports of nine peers. Management commentary is quoted from the company hosted Q4 FY2026 and Q3 FY2026 earnings calls, which are not SEC filings. Accession numbers for every filing used appear in the Sources appendix. Market prices are the closing prices of 23 September 2026.
1. Summary
Super Micro Computer sold $39.1bn of servers and storage in fiscal year 2026 and earned a 10.8% gross margin on them, the lowest full year margin in the six years covered here. Net sales grew 77.8%. Operating cash flow was an outflow of $6.8bn, funded by $9.5bn of financing. Inventory reached $12.9bn and receivables $6.1bn. The company guides fiscal year 2027 net sales to $65.0bn to $72.0bn and carries $34.2bn of current non cancelable purchase commitments. For Q1 FY2027 it guides net sales of $14.5bn to $15.5bn and a gross margin of 10.4% to 10.8% on a non GAAP basis, against the 17.5% reported in Q4 FY2026, a quarter management says benefited from contracts deferred into Q1.
2. Revenue and business model
The company designs and assembles servers, storage and rack scale systems, and sells them to cloud service providers, enterprises and channel partners. Fiscal 2026 revenue of $39.1bn divides into server and storage systems and a services and software line of $538.3m. The annual report describes the shift toward Data Center Building Block Solutions, an integrated offering covering components through complete racks, site infrastructure, management software and professional services, and states that this grew to more than ten key subsystems during the year. Direct liquid cooling solution DLC-2 is described as capturing up to 98% of rack heat.
Net sales of server and storage systems rose $17.1bn, or 77.8%, year on year. The annual report attributes $15.3bn of that, an increase of 83.4%, to Hyper Servers and GPU and Super Racks, related primarily to GB200 and GB300 systems. Sales to customers outside the United States were 29.1% of net sales in FY2026, against 40.6% in FY2025 and 32.0% in FY2024. The annual report attributes the shift to the concentrated deployment of large scale data center customers.
Table 1. Net sales by customer location, USD millions
| Region | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | FY2026 share, % |
|---|---|---|---|---|---|---|---|
| United States | 2,107.9 | 3,035.5 | 4,834.1 | 10,187.3 | 13,052.6 | 27,690.1 | 70.9 |
| Asia | 699.7 | 1,139.9 | 1,050.8 | 2,912.6 | 5,494.1 | 6,063.3 | 15.5 |
| Europe | 614.8 | 825.2 | 1,003.0 | 1,294.0 | 2,727.0 | 2,674.5 | 6.8 |
| Other | 135.0 | 195.5 | 235.5 | 595.4 | 698.3 | 2,635.2 | 6.7 |
| Net sales | 3,557.4 | 5,196.1 | 7,123.5 | 14,989.3 | 21,972.0 | 39,063.1 | 100.0 |
Regional figures come from the revenue notes to the annual reports for fiscal years 2023, 2024 and 2026.
Table 2. Net sales by product type, USD millions
| Fiscal year | Server and storage systems | Subsystems and accessories | Services and software | Total net sales |
|---|---|---|---|---|
| FY2021 | 2,790.3 | 767.1 | n/a | 3,557.4 |
| FY2022 | 4,463.8 | 732.3 | n/a | 5,196.1 |
| FY2023 | 6,569.8 | 553.7 | n/a | 7,123.5 |
| FY2024 | 14,185.2 | 804.0 | 228.3 | 14,989.3 |
| FY2025 | n/a | n/a | 330.5 | 21,972.0 |
| FY2026 | n/a | n/a | 538.3 | 39,063.1 |
From fiscal year 2025 the filings tag only the service and software lines, so the hardware split is not available for FY2025 and FY2026.
3. Financial analysis
Operating income of $2.8bn in FY2026 was 121.1% above FY2025, on net sales 77.8% higher and operating expenses 23.8% higher. Net income of $2.2bn gave earnings of $3.26 per diluted share, against $1.68 in FY2025. Interest expense rose to $194.6m from $59.6m and interest income to $186.9m from $59.8m, while the effective tax rate rose to 19.9% from 12.9% and stock based compensation rose to $412.1m from $314.5m.
Table 3. Consolidated statements of operations, USD millions
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Net sales | 3,557.4 | 5,196.1 | 7,123.5 | 14,989.3 | 21,972.0 | 39,063.1 |
| Cost of sales | 3,022.9 | 4,396.1 | 5,840.5 | 12,927.8 | 19,542.1 | 34,835.8 |
| Gross profit | 534.5 | 800.0 | 1,283.0 | 2,061.4 | 2,429.9 | 4,227.3 |
| Research and development | 224.4 | 272.3 | 307.3 | 463.5 | 636.5 | 771.2 |
| Sales and marketing | 85.7 | 90.1 | 115.0 | 189.7 | 273.1 | 352.6 |
| General and administrative | 100.5 | 102.4 | 99.6 | 197.3 | 267.2 | 332.9 |
| Operating expenses | 410.6 | 464.8 | 521.9 | 850.6 | 1,176.9 | 1,456.8 |
| Operating income | 123.9 | 335.2 | 761.1 | 1,210.8 | 1,253.0 | 2,770.5 |
| Interest expense | n/a | 6.4 | 10.5 | 19.4 | 59.6 | 194.6 |
| Interest income | n/a | n/a | n/a | 29.0 | 59.8 | 186.9 |
| Income before income taxes | 118.6 | 336.8 | 754.3 | 1,214.1 | 1,211.9 | 2,789.3 |
| Income tax expense | 6.9 | 52.9 | 110.7 | 63.3 | 156.9 | 556.3 |
| Net income | 111.9 | 285.2 | 640.0 | 1,152.7 | 1,048.9 | 2,230.5 |
| Earnings per diluted share, USD | 0.21 | 0.53 | 1.14 | 1.92 | 1.68 | 3.26 |
| Diluted shares, millions | 535.0 | 536.2 | 559.7 | 602.1 | 628.4 | 697.3 |
| Stock based compensation | 28.5 | 32.8 | 54.4 | 231.5 | 314.5 | 412.1 |
Share counts for fiscal years 2021 and 2022 are restated for the ten for one forward split effective 1 October 2024. Earnings per share for fiscal years 2021 to 2023 are computed on net income and diluted shares; from fiscal 2024 the figure as reported is used.
Table 4. Consolidated balance sheets, USD millions
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Cash and cash equivalents | 232.3 | 267.4 | 440.5 | 1,669.8 | 5,169.9 | 7,521.5 |
| Accounts receivable, net | 463.8 | 834.5 | 1,148.3 | 2,737.3 | 2,203.9 | 6,125.4 |
| Inventories | 1,041.0 | 1,545.6 | 1,445.6 | 4,333.0 | 4,680.4 | 12,895.9 |
| Total current assets | 1,867.3 | 2,806.3 | 3,179.4 | 8,932.0 | 12,301.7 | 27,726.3 |
| Property, plant and equipment, net | 274.7 | 286.0 | 290.2 | 414.0 | 504.5 | 625.6 |
| Total assets | 2,242.0 | 3,205.1 | 3,674.7 | 9,826.1 | 14,018.4 | 29,945.5 |
| Accounts payable | 612.3 | 655.4 | 776.8 | 1,472.4 | 1,282.0 | 2,247.0 |
| Accrued liabilities | 178.8 | 212.4 | 163.9 | 259.7 | 565.6 | 1,032.7 |
| Deferred revenue, current | 101.5 | 111.3 | 134.7 | 193.1 | 368.7 | 1,578.0 |
| Total current liabilities | 968.9 | 1,470.0 | 1,374.7 | 2,345.7 | 2,344.8 | 7,160.1 |
| Deferred revenue, non current | 100.8 | 122.5 | 169.8 | 223.3 | 362.6 | 1,034.0 |
| Total liabilities | 1,145.6 | 1,779.3 | 1,702.6 | 4,408.7 | 7,716.6 | 15,465.9 |
| Bank debt, current and non current | 98.2 | 596.7 | 290.3 | 476.4 | 112.5 | 4,056.1 |
| Convertible notes | n/a | n/a | 0.0 | 1,697.7 | 4,645.2 | 4,664.1 |
| Mandatory convertible preferred stock | n/a | n/a | n/a | n/a | 0.0 | 4,226.3 |
| Total stockholders equity | 1,096.2 | 1,425.6 | 1,972.0 | 5,417.2 | 6,301.7 | 14,479.5 |
Table 5. Consolidated statements of cash flows, USD millions
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Net income | 111.9 | 285.2 | 640.0 | 1,152.7 | 1,048.9 | 2,230.5 |
| Depreciation and amortisation | 28.2 | 32.5 | 34.9 | 29.6 | 41.3 | 53.7 |
| Stock based compensation | 28.5 | 32.8 | 54.4 | 231.5 | 314.5 | 412.1 |
| Cash from operations | 123.0 | (440.8) | 663.6 | (2,486.0) | 1,659.5 | (6,809.9) |
| Cash used in investing | (58.0) | (46.3) | (39.5) | (194.2) | (183.2) | (200.3) |
| Cash from financing | (44.4) | 522.9 | (448.3) | 3,911.7 | 2,024.0 | 9,478.8 |
| Capital expenditure | 58.0 | 45.2 | 36.8 | 124.3 | 127.2 | 162.0 |
| Free cash flow | 65.0 | (486.0) | 626.8 | (2,610.3) | 1,532.3 | (6,971.9) |
| Interest paid, net | n/a | n/a | n/a | 16.0 | 25.5 | 109.3 |
| Income taxes paid, net | n/a | n/a | n/a | 392.0 | 327.2 | 399.3 |
4. What changed in fiscal year 2026
Table 6. Year on year change, fiscal 2026 against fiscal 2025, USD millions
| Line | FY2025 | FY2026 | Change | Change, % |
|---|---|---|---|---|
| Net sales | 21,972.0 | 39,063.1 | 17,091.1 | 77.8 |
| Cost of sales | 19,542.1 | 34,835.8 | 15,293.7 | 78.3 |
| Gross profit | 2,429.9 | 4,227.3 | 1,797.4 | 74.0 |
| Operating expenses | 1,176.9 | 1,456.8 | 279.9 | 23.8 |
| Operating income | 1,253.0 | 2,770.5 | 1,517.5 | 121.1 |
| Net income | 1,048.9 | 2,230.5 | 1,181.6 | 112.7 |
| Inventories | 4,680.4 | 12,895.9 | 8,215.5 | 175.5 |
| Accounts receivable | 2,203.9 | 6,125.4 | 3,921.5 | 177.9 |
| Accounts payable | 1,282.0 | 2,247.0 | 965.0 | 75.3 |
| Deferred revenue, total | 731.3 | 2,612.0 | 1,880.7 | 257.2 |
| Cash and cash equivalents | 5,169.9 | 7,521.5 | 2,351.6 | 45.5 |
| Bank debt | 112.5 | 4,056.1 | 3,943.6 | 3,505.4 |
| Convertible notes | 4,645.2 | 4,664.1 | 18.9 | 0.4 |
| Total stockholders equity | 6,301.7 | 14,479.5 | 8,177.8 | 129.8 |
| Cash from operations | 1,659.5 | (6,809.9) | (8,469.4) | (510.4) |
The annual report gives three quantified drivers inside cost of sales for FY2026: tariff expense higher by $237.7m, or 228.3%; a reduction in vendor rebates worth $312.9m, or 24.9%; and inventory write down adjustments lower by $43.8m, or 18.8%. Those three account for 1.30 points of the gross margin move. The remaining 1.06 points of offset falls under the pricing and customer mix explanation that the annual report gives for the year as a whole.
5. Ratio analysis
Return on equity of 21.5% in FY2026 compares with 37.7% in FY2023, the peak year for gross margin. The cash conversion cycle widened to 113 days from 99 days, driven by inventory days of 92 and payable days of 18. Payable days fell from 62 in FY2021 to 18 in FY2026. Interest cover fell to 14.2 times from 21.0 times. Cash from operations was an outflow of 3.05 times net income, against an inflow of 1.58 times in FY2025 and an outflow of 2.16 times in FY2024.
Table 7. Ratio analysis, fiscal years 2021 to 2026
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Growth and margin | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net sales growth, % | 6.5 | 46.1 | 37.1 | 110.4 | 46.6 | 77.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross margin, % | 15.0 | 15.4 | 18.0 | 13.8 | 11.1 | 10.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses to net sales, % | 11.5 | 8.9 | 7.3 | 5.7 | 5.4 | 3.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Research and development to net sales, % | 6.3 | 5.2 | 4.3 | 3.1 | 2.9 | 2.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating margin, % | 3.5 | 6.5 | 10.7 | 8.1 | 5.7 | 7.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net margin, % | 3.1 | 5.5 | 9.0 | 7.7 | 4.8 | 5.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings before interest, tax, depreciation and amortisation margin, % | 4.3 | 7.1 | 11.2 | 8.3 | 5.9 | 7.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effective tax rate, % | 5.8 | 15.7 | 14.7 | 5.2 | 12.9 | 19.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Returns | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on equity, % | 10.4 | 22.6 | 37.7 | 31.2 | 17.9 | 21.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on assets, % | 5.4 | 10.5 | 18.6 | 17.1 | 8.8 | 10.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on invested capital, % | 12.6 | 20.8 | 36.3 | 29.6 | 18.5 | 20.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset turnover, times | 1.71 | 1.91 | 2.07 | 2.22 | 1.84 | 1.78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Working capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory days | 114 | 107 | 93 | 82 | 84 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivable days | 45 | 46 | 51 | 47 | 41 | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payable days | 62 | 53 | 45 | 32 | 26 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash conversion cycle, days | 97 | 100 | 100 | 97 | 99 | 113 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liquidity and leverage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current ratio, times | 1.93 | 1.91 | 2.31 | 3.81 | 5.25 | 3.87 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quick ratio, times | 0.85 | 0.86 | 1.26 | 1.96 | 3.25 | 2.07 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net debt to equity, times | (0.12) | 0.23 | (0.08) | 0.09 | (0.07) | 0.08 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net debt to earnings before interest, tax, depreciation and amortisation, times | (0.88) | 0.90 | (0.19) | 0.41 | (0.32) | 0.42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest cover, times | n/a | 52.4 | 72.5 | 62.4 | 21.0 | 14.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash from operations to net income, times | 1.10 | (1.55) | 1.04 | (2.16) | 1.58 | (3.05) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditure to net sales, % | 1.6 | 0.9 | 0.5 | 0.8 | 0.6 | 0.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6. Quarterly record
Net sales of $11.1bn in Q4 FY2026 came with a gross margin of 17.5%, against 6.3% in Q2 FY2026 and 9.5% in Q4 FY2025. Net income of $1.2bn in the quarter was 52.8% of the full year figure. Q2 FY2026 carried the highest net sales of the eight quarters, $12.7bn, at the lowest gross margin of the series, 6.3%.
Table 8. Quarterly record, USD millions
| Quarter | Period end | Net sales | Growth, % | Gross profit | Gross margin, % | Operating income | Operating margin, % | Net income | Inventories | Receivables |
|---|---|---|---|---|---|---|---|---|---|---|
| FY2024Q3 | 2024-03-31 | 3,850.1 | 200.0 | 597.4 | 15.5 | 378.3 | 9.8 | 402.5 | n/a | n/a |
| FY2024Q4 | 2024-06-30 | 5,354.6 | 145.1 | 546.0 | 10.2 | 288.5 | 5.4 | 297.2 | n/a | n/a |
| FY2025Q1 | 2024-09-30 | 5,937.3 | 180.1 | 775.6 | 13.1 | 509.2 | 8.6 | 424.3 | 4,930.6 | 2,731.7 |
| FY2025Q2 | 2024-12-31 | 5,678.0 | 54.9 | 670.0 | 11.8 | 368.6 | 6.5 | 320.6 | 3,596.1 | 3,059.5 |
| FY2025Q3 | 2025-03-31 | 4,599.9 | 19.5 | 440.2 | 9.6 | 146.8 | 3.2 | 108.8 | 3,870.2 | 2,642.6 |
| FY2025Q4 | 2025-06-30 | 5,756.8 | 7.5 | 544.1 | 9.5 | 228.4 | 4.0 | 195.2 | 4,680.4 | 2,203.9 |
| FY2026Q1 | 2025-09-30 | 5,017.8 | (15.5) | 467.4 | 9.3 | 182.3 | 3.6 | 168.3 | 5,730.0 | 2,525.0 |
| FY2026Q2 | 2025-12-31 | 12,682.5 | 123.4 | 798.6 | 6.3 | 474.3 | 3.7 | 400.6 | 10,595.4 | 11,004.1 |
| FY2026Q3 | 2026-03-31 | 10,243.0 | 122.7 | 1,018.7 | 9.9 | 625.9 | 6.1 | 483.4 | 11,103.4 | 8,413.4 |
| FY2026Q4 | 2026-06-30 | 11,119.8 | 93.2 | 1,942.6 | 17.5 | 1,488.0 | 13.4 | 1,178.2 | 12,895.9 | 6,125.4 |
Q4 of each fiscal year is the audited full year less the first nine months reported in the quarterly reports. The Q4 FY2026 figures agree with the current report of 11 August 2026, which gives net sales of $11.1bn, a gross margin of 17.5% and net income of $1.2bn.
7. Cash, working capital and funding
Operating activities used $6.8bn of cash in fiscal 2026. The annual report attributes the outflow to higher inventory purchases, higher receivables from customers and higher operational spending. Inventory rose $8.2bn and receivables rose $3.9bn, against an increase in payables of $965.0m and in deferred revenue of $1.9bn. Finished goods were $10.3bn of the $12.9bn inventory balance, or 79.7%, against 74.0% a year earlier.
Financing activities provided $9.5bn. That consisted of net proceeds from lines of credit and term loans of $3.9bn and $5.6bn from the equity offerings completed in Q4 FY2026, less $129.9m of withholding tax on equity award settlements. The June 2026 offering combined common stock and 7.00% Series A mandatory convertible preferred stock, with proceeds of $1.4bn and $4.2bn respectively. The preferred carries a $1,000 liquidation preference on 4,313,000 shares and an annual dividend of about $301.9m, which is 13.5% of FY2026 net income.
Table 9. Principal credit facilities and notes, USD millions
| Instrument | Size | Terms as filed |
|---|---|---|
| Revolving credit facility, JPMorgan Chase Bank | 2,000.0 | Entered 29 December 2025, with a $200m letter of credit sub limit |
| Revolving credit facilities, CTBC Bank | 1,765.0 | Two facilities with an accordion feature, drawn $1.8bn at 30 June 2026 |
| Convertible senior notes due 2029 | 1,725.0 | Coupon amended from 0.00% to 3.50% in February 2025 |
| Convertible senior notes due 2030 | 2,300.0 | Issued June 2025 with concurrent capped call transactions |
| Convertible senior notes due 2028 | 700.0 | Coupon 2.25%, issued February 2025, matures 15 July 2028 |
| Receivables purchase agreement, MUFG | 1,790.0 | Entered 16 July 2025, sale of eligible receivables |
| Taiwan facilities agreement | 710.0 | CTBC Bank, Credit Agricole and E.Sun Commercial Bank, January 2026 |
Consolidated indebtedness at 30 June 2026 was stated as approximately $8.7bn. Interest rates on the term loans and revolving lines of credit ranged from 1.3% to 5.7% at that date.
8. Management commentary and the guidance record
The annual report states that gross margin fell to 10.8% in fiscal 2026 from 11.1% in fiscal 2025 because of the strategy to offer competitive pricing to gain market share, a change in product and customer mix, and higher manufacturing related expenses. For fiscal 2025 against fiscal 2024 the annual report gives competitive pricing to gain market share, increased competition and a change in product and customer mix. The current report of 11 August 2026 quotes the chief executive stating that the company added several hundred enterprise and other customers during the year, generated more than $60bn in new orders, and booked record backlog entering fiscal 2027, and attributes improving profitability to a richer enterprise customer mix and broader adoption of the Data Center Building Block Solutions architecture. The same release reports cash provided by operations of $747m in Q4 FY2026, against an outflow of $7.6bn over the preceding nine months, and capital expenditure and investments of $25m in the quarter.
Table 10. Quarterly guidance against reported results
| Quarter | Guided net sales, USD bn | Reported, USD bn | Guided earnings per diluted share, USD | Reported, USD | Outcome |
|---|---|---|---|---|---|
| Q3 FY25 | 5.0 to 6.0 | 4.6 | 0.36 to 0.53 | 0.17 | Outside range |
| Q4 FY25 | 5.6 to 6.4 | 5.8 | 0.30 to 0.40 | 0.31 | Within range |
| Q1 FY26 | 6.0 to 7.0 | 5.0 | 0.30 to 0.42 | 0.26 | Outside range |
| Q2 FY26 | 10.0 to 11.0 | 12.7 | 0.37 to 0.45 | 0.60 | Outside range |
| Q3 FY26 | at least 12.3 | 10.2 | at least 0.52 | 0.72 | Outside range |
| Q4 FY26 | 11.0 to 12.5 | 11.1 | 0.53 to 0.67 | 1.62 | Within range |
Guidance is taken from the current report issued with the prior quarter results. Reported net sales for Q4 of each fiscal year are the audited year less the first nine months.
What management said on the Q4 FY2026 call
The Q4 FY2026 non GAAP gross margin of 17.6% came against non GAAP guidance of 8.2% to 8.4% given on the Q3 call, and the GAAP rate was 17.5%. The chief financial officer, David Weigand, attributed the move on the call of 11 August 2026: "Gross margins improved by 750 basis points sequentially due to a better-than-anticipated customer and product mix, including the deferral of several contracts from Q4 fiscal year '26 to Q1 fiscal year '27." He put the split at "approximately 75% of the gross margin improvement" from mix, with "lower tariff costs and lower inventory reserves" driving the rest. For the quarter then running he guided a gross margin of "10.4% to 10.8%" on a non GAAP basis.
Table 11. Figures management gave on the Q4 FY2026 earnings call of 11 August 2026
| Item | As stated | Speaker |
|---|---|---|
| Q4 FY2026 gross margin guided on the Q3 call, non GAAP | 8.2% to 8.4% | David Weigand, chief financial officer |
| Q4 FY2026 gross margin reported, GAAP and non GAAP | 17.5% and 17.6% | Current report of 11 August 2026 |
| Q1 FY2027 gross margin guided, non GAAP | 10.4% to 10.8% | David Weigand, chief financial officer |
| FY2027 net sales guided | $65bn to $72bn | Charles Liang, chief executive |
| New orders, stated as the past year in the current report and as Q4 FY2026 on the call | more than $60bn | Charles Liang, chief executive, and David Weigand, chief financial officer |
| Share of those orders described as pure AI | about 70% | Charles Liang, chief executive |
| Customers above $1bn of revenue, FY2026 against FY2025 | 9 against 4 | David Weigand, chief financial officer |
| Days of inventory, Q4 FY2026 against Q3 FY2026 | 119 against 106 | David Weigand, chief financial officer |
| Net debt after the June equity raise, against the prior quarter | $1.2bn against $7.5bn | David Weigand, chief financial officer |
Taken from the transcript of the company hosted earnings call, which is not an SEC filing. The gross margin the company guides is stated on a non GAAP basis, which excludes stock based compensation in cost of sales. That adjustment was 0.1 points in Q4 FY2026 and 0.2 points in Q3 FY2026, which puts the GAAP equivalent of the Q1 FY2027 guidance at about 10.2% to 10.6%, against the 10.8% the company earned across fiscal 2026 as a whole. The company gives two periods for the $60bn of new orders: the current report of 11 August 2026 quotes the chief executive on the past year, while on the call the chief financial officer put the same figure in Q4 FY2026.
Two statements on the call bear on the forward cases. On the shortfall against the Q4 net sales guidance the chief executive said the quarter came in at $11.1bn "due to some short-term customer delays in power shortage, cooling, and networking, we know this is purely a timing story". On whether the June 2026 raise ends the funding requirement he said that at "between $65 billion to $72 billion, I guess our cash flow now is pretty enough. But if there are a chance to grow much higher revenue, then we may need more cash flow". Asked for an update on the board's independent review of certain transactions connected to export control issues, the chief financial officer said only: "We expect to provide an update shortly, and that's all we can share on this call."
9. Sector and competitor analysis
Gross margin of 10.8% places Super Micro in the band the contract manufacturers occupy. Celestica reported 12.1%, Flex 9.2%, Jabil 8.9% and Sanmina 8.8% in their latest fiscal years, against Dell Technologies at 20.0% and Hewlett Packard Enterprise at 31.7%. Upstream, NVIDIA reported 71.1% and Arista Networks 64.1%. Net sales growth of 77.8% was the highest in the group, ahead of NVIDIA at 65.5% and Dell Technologies at 18.8%, and its gross margin ranked eighth of the ten.
Table 12. Peer comparison, latest reported fiscal year, USD millions and %
| Company | Fiscal year end | Net sales | Growth, % | Gross margin, % | Operating margin, % | Net margin, % | Return on equity, % | Return on invested capital, % | Cash conversion cycle, days | Net debt to equity, times | Cash from operations to net income, times |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SMCI | 30 Jun 2026 | 39,063 | 77.8 | 10.8 | 7.1 | 5.7 | 21.5 | 20.6 | 113 | 0.08 | (3.05) |
| NVDA | 25 Jan 2026 | 215,938 | 65.5 | 71.1 | 60.4 | 55.6 | 76.3 | 71.3 | 133 | (0.01) | 0.86 |
| ANET | 31 Dec 2025 | 9,006 | 28.6 | 64.1 | 42.8 | 39.0 | 28.4 | 30.6 | 256 | (0.16) | 1.25 |
| VRT | 31 Dec 2025 | 10,230 | 27.7 | 36.3 | 17.9 | 13.0 | 33.8 | 27.3 | 94 | 0.30 | 1.59 |
| HPE | 31 Oct 2025 | 34,296 | 13.8 | 31.7 | (1.3) | 0.5 | 0.7 | 0.2 | 35 | 0.67 | 16.87 |
| DELL | 30 Jan 2026 | 113,538 | 18.8 | 20.0 | 7.2 | 5.2 | (240.3) | 38.0 | (37) | (8.09) | 1.88 |
| CLS | 31 Dec 2025 | 12,391 | 28.5 | 12.1 | 8.4 | 6.7 | 37.6 | 36.8 | 88 | 0.08 | 0.79 |
| FLEX | 31 Mar 2026 | 27,914 | 8.1 | 9.2 | 4.9 | 3.1 | 17.1 | 16.2 | 29 | 0.26 | 1.91 |
| JBL | 31 Aug 2025 | 29,802 | 3.2 | 8.9 | 4.0 | 2.2 | 43.4 | 35.3 | 6 | 0.63 | 2.50 |
| SANM | 27 Sep 2025 | 8,128 | 7.4 | 8.8 | 4.4 | 3.0 | 9.7 | 14.5 | 83 | (0.25) | 2.52 |
Fiscal year ends differ across the group. Dell Technologies reports negative book equity after share repurchases, so its return on equity and net debt to equity figures carry a different meaning from the rest of the column.
Table 13. Market valuation against the latest reported fiscal year, USD millions
| Company | Price, USD | Market capitalisation | Enterprise value | Price to earnings, times | Enterprise value to net sales, times | Enterprise value to earnings before interest, tax, depreciation and amortisation, times | Price to book, times |
|---|---|---|---|---|---|---|---|
| SMCI | 41.44 | 27,221 | 32,733 | 12.7 | 0.84 | 11.6 | 2.68 |
| NVDA | 223.23 | 5,472,260 | 5,470,123 | 45.6 | 25.33 | n/a | n/a |
| DELL | 541.50 | 370,316 | 390,291 | 62.4 | 3.44 | n/a | n/a |
| ANET | 202.90 | 258,840 | 256,876 | 73.7 | 28.52 | n/a | n/a |
| VRT | 244.48 | 95,507 | 96,691 | 71.7 | 9.45 | n/a | n/a |
| HPE | 61.30 | 81,161 | 97,753 | 469.1 | 2.85 | n/a | n/a |
| FLEX | 112.30 | 42,449 | 43,811 | 48.2 | 1.57 | n/a | n/a |
| CLS | 355.00 | 41,251 | 41,432 | 49.6 | 3.34 | n/a | n/a |
| JBL | 305.00 | 33,824 | 34,776 | 51.5 | 1.17 | n/a | n/a |
| SANM | 221.89 | 12,243 | 11,618 | 49.8 | 1.43 | n/a | n/a |
Market capitalisation uses the diluted share count from each company's latest annual report and the closing price on 23 September 2026. The Super Micro enterprise value adds the $4.3bn liquidation preference of the mandatory convertible preferred stock. Earnings multiples use each company's latest reported fiscal year, which for several peers ended more than six months before the price date.
Reported and guided capital expenditure by the largest buyers of accelerated computing sets the size of the addressable spend. Amazon guided $220bn for calendar 2026 against about $100bn in 2025; Alphabet guided $195bn to $205bn against $80bn; Meta Platforms guided about $135bn to $145bn against $72.2bn; Oracle reported $55.7bn for its fiscal 2026 against $21.2bn. Third party estimates put the worldwide server market at $444.1bn in calendar 2025 against $235.7bn in 2024, with unbranded original design manufacturer shipments direct to hyperscalers at 53.9% of the AI server market in calendar Q2 2026, and Super Micro at 6.1% against Dell Technologies at 13.4%.
10. Material events and legal matters
Table 14. Material events reported on Form 8-K, July 2025 to September 2026
| Date | Event as filed |
|---|---|
| 16 Jul 2025 | Receivables purchase agreement with MUFG of $1.8bn |
| 5 Aug 2025 | Q4 and full year FY2025 results |
| 4 Nov 2025 | Q1 FY2026 results, net sales $5.0bn |
| 29 Dec 2025 | Revolving credit facility with JPMorgan Chase Bank of $2.0bn |
| 21 Jan 2026 | Taiwan facilities agreement with CTBC Bank, Credit Agricole and E.Sun Commercial Bank |
| 29 Jan 2026 | Amendment No. 1 to the JPMorgan credit agreement |
| 3 Feb 2026 | Q2 FY2026 results, net sales $12.7bn at a 6.3% gross margin |
| 19 Mar 2026 | Indictment of three individuals employed by or associated with the company unsealed by the United States Attorney for the Southern District of New York, alleging a conspiracy to commit export control violations |
| 20 Mar 2026 | Yih-Shyan Liaw resigns from the board; an acting chief compliance officer is appointed |
| 20 Apr 2026 | Annual meeting voting results and an equity plan amendment |
| 5 May 2026 | Q3 FY2026 results, net sales $10.2bn |
| 18 May 2026 | A new independent director is appointed |
| 9 Jun 2026 | Risk factor supplement covering the indictment and the government inquiries |
| 12 Jun 2026 | Pricing of a combined common stock and mandatory convertible preferred stock offering of about $7.0bn |
| 15 Jun 2026 | Closing of the offering and filing of the certificate of designations for the 7.00% Series A Mandatory Convertible Preferred Stock |
| 11 Aug 2026 | Q4 and full year FY2026 results, and FY2027 net sales guidance of $65.0bn to $72.0bn |
The annual report names the government matters outstanding: a subpoena from the Securities and Exchange Commission for documents relating to certain customers and to the company's controls and procedures; a grand jury subpoena from the United States Attorney for the Southern District of New York; other Department of Justice subpoenas; and multiple subpoenas from the Office of Export Enforcement of the Bureau of Industry and Security. The filing states that the company is not named as a defendant in the indictment, is not alleged to be a co conspirator, and has not been informed that it is the target of any of these investigations to date. An independent investigation led by the lead independent director and the chair of the audit committee, conducted by outside counsel with a forensic accounting firm, is described as finding no evidence that any current member of senior management had knowledge of the alleged diversion scheme, and no instance in which the company directly sold export controlled products to known restricted parties or locations.
Related party purchases from Ablecom Technology and Compuware Technology were 2.1% of cost of sales in fiscal 2026, against 3.3% in fiscal 2025 and 4.3% in fiscal 2024. At 30 June 2026 the chief executive and his spouse jointly owned about 10.5% of Ablecom, and Steve Liang and his family members about 35.5% of its outstanding common stock.
11. Ownership and the annual meeting
Shareholders approved every proposal at the annual meeting held on 15 April 2026. On the record date of 17 February 2026 there were 600,481,952 shares outstanding and entitled to vote, and 431,634,758 shares, or 71.9% of them, were represented. Broker non votes ran to 151,333,203 shares on every proposal other than the auditor ratification, which is the one routine matter a broker may vote without instruction. The three Class I directors were elected on a plurality, so the votes withheld carried no legal effect on the outcome.
Table 15. Annual meeting of 15 April 2026, votes cast, millions of shares
| Proposal | For | Against or withheld | Abstentions | Broker non votes | For, % of votes cast |
|---|---|---|---|---|---|
| Election of Charles Liang, Class I director | 234.6 | 45.7 | n/a | 151.3 | 83.7 |
| Election of Tally Liu, Class I director | 198.6 | 81.7 | n/a | 151.3 | 70.9 |
| Election of Sherman Tuan, Class I director | 172.3 | 108.0 | n/a | 151.3 | 61.5 |
| Advisory vote on named executive officer compensation | 259.7 | 19.8 | 0.8 | 151.3 | 92.7 |
| Ratification of BDO USA, P.C. as auditor for fiscal 2026 | 426.0 | 4.6 | 1.1 | n/a | 98.7 |
| Amendment and restatement of the 2020 Equity and Incentive Compensation Plan | 227.8 | 51.7 | 0.8 | 151.3 | 81.3 |
Support is the votes for as a share of the votes cast on that proposal, which is the votes for plus against or withheld plus abstentions. Broker non votes are excluded from that base. The equity plan amendment raised the shares available for awards to 118,000,000, made up of 103,000,000 approved before 2026 and 15,000,000 added at this meeting, with no grants after 15 April 2036.
Support ran from 61.5% to 98.7%. The auditor ratification drew 98.7% and the advisory vote on named executive officer compensation 92.7%. Among the three directors, Sherman Tuan drew 61.5% and Tally Liu 70.9%, against 83.7% for Charles Liang, the founder who serves as president, chief executive and chairman. Votes withheld from Mr Tuan came to 108.0m shares, or 38.5% of the votes cast in his election. The equity plan amendment drew 81.3%, the lowest support of the three non election proposals.
Table 16. Beneficial ownership at 31 January 2026, millions of shares
| Holder | Shares | % of shares outstanding |
|---|---|---|
| Charles Liang and Sara Liu | 82.1 | 13.4 |
| The Vanguard Group | 68.8 | 11.5 |
| BlackRock, Inc. | 41.3 | 6.9 |
| Yih-Shyan (Wally) Liaw | 15.5 | 2.6 |
| All directors and executive officers as a group | 99.1 | 16.1 |
Computed by the company on 598,989,428 shares outstanding at that date, with shares a holder may acquire within 60 days treated as outstanding for that holder. Officers, directors and holders of 5% or more together held 34.5%. The FY2026 annual report gives 12.5% for officers and directors at 31 July 2026, against 16.1% here at 31 January 2026, and adds 31.8% for unaffiliated holders of 5% or more, after the June 2026 share issuance raised the count to 656,882,000 shares.
12. Risk factors and internal control
Table 17. Risk factors and how the fiscal 2026 annual report changed them
| Risk factor | Substance as filed | Change against fiscal 2025 |
|---|---|---|
| Customer concentration | One customer accounted for 10% or more of net sales in fiscal 2026, four customers in fiscal 2025 and one in fiscal 2024. | Carried forward |
| Supplier concentration | One supplier accounted for 63.1% of total purchases in fiscal 2026. Two suppliers accounted for 64.4% and 5.1% in fiscal 2025. | Carried forward |
| Indebtedness | Consolidated indebtedness of approximately $8.7bn at 30 June 2026 across the JPMorgan revolver, the CTBC facilities and three convertible note issues. | Updated figures |
| Government investigations and the indictment | The indictment unsealed on 19 March 2026, the grand jury and Securities and Exchange Commission subpoenas, and the export enforcement inquiries. | New in fiscal 2026 |
| Delinquent reporting and material weaknesses | The separate category used in the fiscal 2025 filing is folded into two bullets, with added language stating that enhanced compliance controls have since been implemented. | Reworded |
| General risks category | The separate general risks category covering environmental, social and governance law exposure does not appear in the fiscal 2026 filing. The climate change bullet moves into the operating risks category. | Removed |
| Dependence on AI demand | The wording moves from a portion of recent success to a significant portion of recent success. | Reworded |
| Dilution from convertible instruments | The 2028, 2029 and 2030 convertible notes, the capped call transactions and the conversion of the mandatory convertible preferred stock. | Updated figures |
| Ownership concentration | Executive officers and directors beneficially owned 12.5% of common stock at 31 July 2026, with unaffiliated institutional holders of 5% or more holding a further 31.8%. | Carried forward |
| Malaysian tax incentive | A ten year income tax exemption on manufacturing income is applied for but not approved, conditioned on meeting a minimum eligible investment threshold by 16 December 2026. | Carried forward |
Management concluded that disclosure controls and procedures and internal control over financial reporting were not effective at 30 June 2026, because of one material weakness carried over from fiscal 2025. The filing states that three of the previously reported material weaknesses were remediated during fiscal 2026, following a redesign of the enterprise resource planning security role structure and segregation of duties rulesets and the addition of qualified accounting leadership. The remaining weakness covers information technology controls over certain systems supporting financial reporting and the monitoring of user access to financial applications, infrastructure and programs, with operating effectiveness testing planned for fiscal 2027. For each of fiscal 2024, fiscal 2025 and fiscal 2026 the auditor issued an unqualified opinion on the financial statements and an adverse opinion on internal control over financial reporting.
13. Stock price, scenarios and sensitivity
The shares closed at $41.44 on 23 September 2026, 59.0% below the peak monthly close of $101.00 in March 2024 and 112.7% above the trailing low of $19.48. That price is 12.7 times fiscal 2026 earnings of $3.26 per diluted share, 2.68 times book value, and 0.84 times fiscal 2026 net sales on an enterprise value of $32.7bn.
Table 18. Three year scenarios, fiscal years 2027 to 2029
| Input and result | FY2027 | FY2028 | FY2029 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Best case | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net sales, USD bn | 72.0 | 93.6 | 112.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net sales growth, % | 84.3 | 30.0 | 20.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross margin, % | 13.0 | 13.5 | 13.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses, USD m | 2,200 | 2,600 | 3,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income, USD m | 7,160 | 10,036 | 12,161 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating margin, % | 9.9 | 10.7 | 10.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income, USD m | 5,657 | 7,981 | 9,696 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred dividend, USD m | 302 | 302 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted shares, millions | 748 | 780 | 810 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings per diluted share, USD | 7.26 | 9.94 | 12.06 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exit earnings multiple, times | n/a | n/a | 18.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Implied value per share, USD | n/a | n/a | 217.14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Base case | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net sales, USD bn | 68.5 | 82.2 | 90.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net sales growth, % | 75.4 | 20.0 | 10.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross margin, % | 10.4 | 10.2 | 10.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses, USD m | 2,150 | 2,500 | 2,800 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income, USD m | 4,974 | 5,884 | 6,240 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating margin, % | 7.3 | 7.2 | 6.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income, USD m | 3,894 | 4,612 | 4,880 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred dividend, USD m | 302 | 302 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted shares, millions | 745 | 775 | 805 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings per diluted share, USD | 4.92 | 5.66 | 6.16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exit earnings multiple, times | n/a | n/a | 13.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Implied value per share, USD | n/a | n/a | 80.02 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worst case | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net sales, USD bn | 55.0 | 46.8 | 42.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net sales growth, % | 40.8 | (14.9) | (10.0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross margin, % | 8.5 | 7.5 | 7.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses, USD m | 2,000 | 2,050 | 2,050 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income, USD m | 2,675 | 1,460 | 1,108 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating margin, % | 4.9 | 3.1 | 2.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income, USD m | 1,938 | 928 | 630 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred dividend, USD m | 302 | 302 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted shares, millions | 742 | 760 | 775 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings per diluted share, USD | 2.31 | 0.92 | 0.91 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exit earnings multiple, times | n/a | n/a | 8.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Implied value per share, USD | n/a | n/a | 7.28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Every input in this table is an assumption other than the fiscal 2027 net sales range, which is the company guidance of $65.0bn to $72.0bn, and the 20.1% tax rate, which is the rate stated in the Q1 FY2027 guidance. The base case takes the midpoint of the guidance and holds the gross margin near the level the Q1 FY2027 guidance gives. Each case adds back $75m of after tax convertible note interest, matching the method used in the fiscal 2026 earnings per share note, and treats the mandatory convertible preferred stock as converting during fiscal 2029, which removes the preferred dividend from that year.
Critical factors behind the best case
Table 19. Critical factors driving the best case, with the disclosed figures behind each
| Factor | What the filings state | Why it moves the outcome |
|---|---|---|
| Gross margin holds near the Q4 FY2026 rate | Gross margin of 13.0 to 13.5% against 10.8% in fiscal 2026 and 17.5% in Q4 FY2026. Management attributes about 75% of the Q4 improvement to customer and product mix, including contracts deferred from Q4 FY2026 into Q1 FY2027, and guides 10.4% to 10.8% on a non GAAP basis for Q1 FY2027. | Each point of gross margin on the fiscal 2027 guided net sales is worth about $685m of operating income and $0.73 per diluted share. The gap between the Q4 rate and the Q1 guidance is about 7 points, or roughly $4.8bn of annual gross profit at guided net sales. |
| Enterprise and channel mix widens | The annual report attributes the Q4 improvement to a richer enterprise customer mix and to Data Center Building Block Solutions adoption. | Sales outside the United States fell to 29.1% of net sales in fiscal 2026 from 40.6%, and one customer passed 10% of net sales. A broader customer base changes both the margin and the concentration risk the annual report discloses. |
| Order book converts on schedule | More than $60bn of new orders in fiscal 2026 and current non cancelable purchase commitments of $34.2bn. | Purchase commitments of $34.2bn are 87.6% of fiscal 2026 net sales and 49.9% of the midpoint of fiscal 2027 guidance, which sets a floor under the component supply the guidance requires. |
| Component supply and cost pass through | One supplier was 63.1% of total purchases in fiscal 2026. Tariff expense rose $237.7m and vendor rebates fell $312.9m. | The company states that a 10% change in interest rates and a 10% change in foreign exchange rates would not significantly affect results. It gives no comparable sensitivity for component prices, so component cost moves pass through gross margin. |
| Working capital stops absorbing cash | Cash conversion cycle of 113 days, inventory 79.7% finished goods, payable days down to 18 from 62 in fiscal 2021. | At 113 days on the midpoint of fiscal 2027 guidance, working capital would absorb about $21bn. Cash from operations turned positive at $747m in Q4 FY2026 after an outflow of $7.6bn over the first nine months. |
| Government matters resolve without company liability | The indictment names three individuals employed by or associated with the company. The company is not named as a defendant. Subpoenas from the Securities and Exchange Commission, the Department of Justice and the Bureau of Industry and Security remain open. | The filing states that the board is conducting an independent review of certain transactions in connection with export control issues, and that the outcome could affect its forecasts, the preliminary results and prior period results. |
Core assumptions
The three cases share the following. The tax rate is 20.1% for fiscal 2027 and 20.0% afterwards. The preferred dividend of $301.9m a year runs through fiscal 2028 and stops in fiscal 2029 on mandatory conversion. After tax convertible note interest of $75m a year is added back under the if converted method, matching the fiscal 2026 earnings per share note. Capital expenditure follows the company guidance of $380.0m to $400.0m for fiscal 2027. No acquisitions, no share repurchases and no further equity issuance beyond the share count stated in each case are assumed. The exit multiple in the base case is 13 times, which is the trailing multiple of 12.7 times that the shares carry today rounded to the nearest whole number.
Sensitivity
Net sales and gross margin are the two variables that move the outcome most. Holding operating expenses at $2.8bn, net interest cost at $140m, the tax rate at 20% and diluted shares at 805m, fiscal 2029 earnings per diluted share run from $0.30 at $45bn of net sales on a 7.0% gross margin to $14.46 at $120bn on a 14.5% margin. That is a range of $14.16 per diluted share across the grid, against reported earnings of $3.26 per diluted share in fiscal 2026.
Table 20. One way sensitivity on fiscal 2027, gross profit or operating income, USD millions
| Variable moved | Worst case | Base case | Best case |
|---|---|---|---|
| One point of gross margin on fiscal 2027 net sales | 550 | 685 | 720 |
| The same, per diluted share, USD | 0.59 | 0.73 | 0.77 |
| A 10% change in FY2027 net sales, at case gross margin | 468 | 699 | 936 |
| One hundred million of operating expense, per diluted share, USD | 0.11 | 0.11 | 0.11 |
| One point of tax rate on fiscal 2027 pretax income, USD m | 24 | 47 | 71 |
What would break the base case. The base case holds the gross margin near the level the Q1 FY2027 guidance gives, 10.4% on a GAAP basis against the 10.4% to 10.8% the company guides on a non GAAP basis, and takes the midpoint of the fiscal 2027 net sales guidance. Reported net sales fell outside the quarterly guidance range in four of the six quarters shown above, twice below and twice above, and the Q4 FY2026 gross margin came in at more than double the 8.2% to 8.4% guided for it, so the guidance midpoint carries that record. The base case also assumes no further equity issuance beyond 745 million to 805 million diluted shares, while the company drew $9.5bn from financing in fiscal 2026 to fund a working capital build; another year of the same cash consumption at the base case revenue level would require funding on the same scale as the $9.5bn raised during fiscal 2026.
Sources
Every filing read for this analysis, with its accession number. Filings were retrieved through the SEC-API.io service. Market prices are closing prices for 23 September 2026.
Annual reports on Form 10-K, Super Micro Computer
| Filing | Filed | Accession number |
|---|---|---|
| Annual report on Form 10-K, fiscal 2026 | 31 Aug 2026 | 0001375365-26-000022 |
| Annual report on Form 10-K, fiscal 2025 | 28 Aug 2025 | 0001375365-25-000027 |
| Annual report on Form 10-K, fiscal 2024 | 25 Feb 2025 | 0001375365-25-000004 |
| Annual report on Form 10-K, fiscal 2023 | 25 Aug 2023 | 0001375365-23-000036 |
| Annual report on Form 10-K, fiscal 2021 | 27 Aug 2021 | 0001375365-21-000060 |
Quarterly reports on Form 10-Q, Super Micro Computer
| Filing | Period end | Accession number |
|---|---|---|
| Quarterly report on Form 10-Q, FY23 Q1 | 2022-09-30 | 0001375365-22-000119 |
| Quarterly report on Form 10-Q, FY23 Q2 | 2022-12-31 | 0001375365-23-000012 |
| Quarterly report on Form 10-Q, FY23 Q3 | 2023-03-31 | 0001375365-23-000028 |
| Quarterly report on Form 10-Q, FY24 Q1 | 2023-09-30 | 0001375365-23-000041 |
| Quarterly report on Form 10-Q, FY24 Q2 | 2023-12-31 | 0001375365-24-000011 |
| Quarterly report on Form 10-Q, FY24 Q3 | 2024-03-31 | 0001375365-24-000022 |
| Quarterly report on Form 10-Q, FY25 Q1 | 2024-09-30 | 0001375365-25-000005 |
| Quarterly report on Form 10-Q, FY25 Q2 | 2024-12-31 | 0001375365-25-000006 |
| Quarterly report on Form 10-Q, FY25 Q3 | 2025-03-31 | 0001375365-25-000014 |
| Quarterly report on Form 10-Q, FY26 Q1 | 2025-09-30 | 0001375365-25-000030 |
| Quarterly report on Form 10-Q, FY26 Q2 | 2025-12-31 | 0001375365-26-000007 |
| Quarterly report on Form 10-Q, FY26 Q3 | 2026-03-31 | 0001375365-26-000014 |
Current reports on Form 8-K, Super Micro Computer
| Filed | Items | Event | Accession number |
|---|---|---|---|
| 2024-01-18 | Item 2.02; Item 9.01 | Q2 FY24 business update (preliminary) | 0001375365-24-000002 |
| 2024-01-25 | Item 5.02; Item 5.07; Item 9.01 | 2020 Equity Incentive Plan approved at annual meeting | 0001375365-24-000005 |
| 2024-01-29 | Item 2.02; Item 9.01 | Q2 FY24 final earnings | 0001375365-24-000008 |
| 2024-02-01 | Item 1.01; Item 9.01 | Real estate purchase agreement, 550 Brokaw Rd, San Jose | 0001375365-24-000010 |
| 2024-02-20 | Item 1.01; Item 2.03; Item 9.01 | CTBC Bank credit facilities increased to $185m | 0001375365-24-000014 |
| 2024-02-21 | Item 1.01; Item 8.01; Item 9.01 | Bank of America 7th amendment; launch of $1.5bn convertible notes offering | 0001375365-24-000015 |
| 2024-02-23 | Item 8.01; Item 9.01 | Pricing of $1.5bn 0.00% Convertible Senior Notes due 2029 | 0001375365-24-000016 |
| 2024-02-27 | Item 1.01; Item 2.03; Item 3.02; Item 9.01 | Closing of $1.5bn 2029 Convertible Notes; capped call transactions; unregistered sale | 0001375365-24-000017 |
| 2024-03-14 | Item 5.02; Item 9.01 | Officer/director departure (no press release) | 0001375365-24-000019 |
| 2024-03-22 | Item 1.01; Item 8.01; Item 9.01 | Common stock offering: 2,000,000 shares (underwriting agreement, Goldman Sachs) | 0001375365-24-000020 |
| 2024-04-30 | Item 2.02; Item 9.01 | Q3 FY24 earnings | 0001375365-24-000021 |
| 2024-05-09 | Item 3.01; Item 9.01 | Nasdaq notice: late 10-K filing (initial delinquency notice) | 0001375365-24-000023 |
| 2024-06-21 | Item 1.01; Item 2.03; Item 9.01 | Prime/PDC Vernon facility leases (Item 1.01/2.03) | 0001375365-24-000026 |
| 2024-07-22 | Item 1.01; Item 7.01; Item 9.01 | Material agreement / Reg FD disclosure (Item 1.01/7.01) | 0001375365-24-000027 |
| 2024-08-06 | Item 2.02; Item 9.01 | Q4 and full year FY24 earnings; announces ten for one stock split | 0001375365-24-000028 |
| 2024-08-19 | Item 5.02; Item 7.01; Item 9.01 | Susie Giordano appointed to Board of Directors | 0001375365-24-000029 |
| 2024-08-28 | Item 8.01; Item 9.01 | Press release re: delayed 10-K/Form 12b-25 (Item 8.01) | 0001375365-24-000030 |
| 2024-09-03 | Item 7.01; Item 9.01 | Customer letter (Regulation FD disclosure) | 0001375365-24-000032 |
| 2024-09-20 | Item 3.01; Item 9.01 | Nasdaq non compliance notification letter | 0001375365-24-000033 |
| 2024-09-26 | Item 8.01; Item 9.01 | Other events disclosure (Item 8.01, no exhibit) | 0001375365-24-000034 |
| 2024-09-30 | Item 1.01; Item 2.03; Item 3.03; Item 5.03; Item 9.01 | ten for one forward stock split effected; BofA 9th amendment | 0001375365-24-000035 |
| 2024-10-30 | Item 4.01; Item 9.01 | Ernst and Young resigns as independent registered public accounting firm | 0001375365-24-000036 |
| 2024-11-01 | Item 1.01; Item 2.03; Item 9.01 | Cathay Bank third amendment to credit facility | 0001375365-24-000037 |
| 2024-11-05 | Item 1.02; Item 2.02; Item 9.01 | Q1 FY25 preliminary results and Special Committee update | 0001375365-24-000038 |
| 2024-11-18 | Item 4.01; Item 8.01; Item 9.01 | BDO USA appointed as new independent registered public accounting firm; Nasdaq compliance plan | 0001375365-24-000040 |
| 2024-11-20 | Item 1.01; Item 2.03; Item 3.01; Item 9.01 | JPMorgan facility notification; Nasdaq delisting notice risk disclosure; Q1 FY25 final results referenced | 0001375365-24-000042 |
| 2024-11-26 | Item 1.02; Item 9.01 | Termination of a material definitive agreement (no exhibit) | 0001375365-24-000043 |
| 2024-12-02 | Item 5.02; Item 8.01; Item 9.01 | Special Committee concludes investigation | 0001375365-24-000044 |
| 2024-12-06 | Item 3.01; Item 9.01 | Nasdaq grants extension to regain listing compliance | 0001375365-24-000045 |
| 2024-12-27 | Item 1.02; Item 9.01 | Termination of a material definitive agreement (no exhibit) | 0001375365-24-000046 |
| 2025-02-11 | Item 2.02; Item 8.01; Item 9.01 | Q2 FY25 preliminary results; $700m 2028 convertible notes + 2029 notes amendment | 0001375365-25-000001 |
| 2025-02-21 | Item 1.01; Item 2.03; Item 3.02; Item 9.01 | $700m 2028 Convertible Notes indenture executed; 2029 notes amended | 0001375365-25-000003 |
| 2025-02-26 | Item 3.01; Item 5.08; Item 8.01; Item 9.01 | Nasdaq notice: Q2 FY25 10-Q delinquency + shareholder director nomination window | 0001375365-25-000007 |
| 2025-03-31 | Item 5.02; Item 7.01; Item 9.01 | Scott Angel and Yitai Hu join Company | 0001375365-25-000008 |
| 2025-04-29 | Item 2.02; Item 9.01 | Q3 FY25 business update (preliminary) | 0001375365-25-000012 |
| 2025-05-06 | Item 2.02; Item 9.01 | Q3 FY25 final earnings | 0001375365-25-000013 |
| 2025-06-06 | Item 5.02; Item 5.07; Item 9.01 | Equity plan amendment / annual meeting vote results (Item 5.02/5.07) | 0001375365-25-000016 |
| 2025-06-23 | Item 8.01; Item 9.01 | Launch of Project Sunflower: $2.0bn Convertible Senior Notes due 2030 offering | 0001375365-25-000018 |
| 2025-06-26 | Item 1.01; Item 2.03; Item 3.02; Item 8.01; Item 9.01 | Pricing/closing of $2.0bn Convertible Senior Notes due 2030 (Project Sunflower); capped call | 0001375365-25-000020 |
| 2025-07-21 | Item 1.01; Item 2.03; Item 9.01 | MUFG $1.79bn Receivables Purchase Agreement | 0001375365-25-000022 |
| 2025-08-05 | Item 2.02; Item 9.01 | Q4 and full year FY25 earnings | 0001375365-25-000023 |
| 2025-10-23 | Item 2.02; Item 9.01 | Q1 FY26 business update (preliminary) | 0001628280-25-045989 |
| 2025-11-04 | Item 2.02; Item 9.01 | Q1 FY26 final earnings | 0001375365-25-000029 |
| 2025-12-29 | Item 5.02; Item 9.01 | Officer/director change (no press release) | 0001375365-25-000031 |
| 2026-01-02 | Item 1.01; Item 9.01 | JPMorgan $2.0bn revolving credit facility | 0001375365-26-000001 |
| 2026-01-02 | Item 5.02; Item 9.01 | Independent contractor agreement tied to officer arrangement (Item 5.02, 8-K/A) | 0001375365-26-000002 |
| 2026-01-26 | Item 1.01; Item 5.08; Item 8.01; Item 9.01 | Taiwan credit facilities agreement (CTBC/Credit Agricole/E.Sun); Annual Meeting date set | 0001375365-26-000004 |
| 2026-01-29 | Item 1.01; Item 9.01 | Amendment No. 1 to JPMorgan Credit Agreement | 0001375365-26-000005 |
| 2026-02-03 | Item 2.02; Item 9.01 | Q2 FY26 earnings | 0001375365-26-000006 |
| 2026-03-20 | Item 5.02; Item 9.01 | SDNY unseals indictment of three individuals for export control violations; Wally Liaw resigns from Board; DeAnna Luna named acting CCO | 0001375365-26-000011 |
| 2026-04-20 | Item 5.02; Item 5.07; Item 9.01 | Equity plan amendment / annual meeting vote results (Item 5.02/5.07) | 0001375365-26-000012 |
| 2026-05-05 | Item 2.02; Item 9.01 | Q3 FY26 earnings (preliminary) | 0001375365-26-000013 |
| 2026-05-18 | Item 5.02; Item 9.01 | New independent director appointed (Don Clegg, per exhibit filename) | 0001375365-26-000015 |
| 2026-06-09 | Item 8.01; Item 9.01 | Risk factor supplement (ahead of $7bn financing) covering indictment, DOJ/SEC/BIS subpoenas, related party and short seller matters | 0001193125-26-263942 |
| 2026-06-12 | Item 1.01; Item 7.01; Item 9.01 | Launch and pricing of $7.0bn equity/equity linked financing: common stock + 7.0% Mandatory Convertible Preferred Stock | 0001193125-26-269703 |
| 2026-06-15 | Item 1.01; Item 3.03; Item 5.03; Item 9.01 | Closing of $7.0bn financing; Certificate of Designations for 7.0% Mandatory Convertible Preferred Stock filed | 0001193125-26-270430 |
| 2026-07-21 | Item 2.02; Item 9.01 | Q4 FY26 business update (preliminary) | 0001375365-26-000019 |
| 2026-08-05 | Item 8.01; Item 9.01 | Other events disclosure (Item 8.01, no exhibit) | 0001375365-26-000020 |
| 2026-08-11 | Item 2.02; Item 9.01 | Q4 and full year FY26 earnings | 0001375365-26-000021 |
Annual reports of the comparison group
| Company | Fiscal year | Fiscal year end | Accession number |
|---|---|---|---|
| DELL | FY2024 | 2024-02-02 | 0001571996-24-000036 |
| DELL | FY2025 | 2025-01-31 | 0001571996-25-000034 |
| DELL | FY2026 | 2026-01-30 | 0001571996-26-000008 |
| HPE | FY2023 | 2023-10-31 | 0001645590-23-000117 |
| HPE | FY2024 | 2024-10-31 | 0001645590-24-000139 |
| HPE | FY2025 | 2025-10-31 | 0001645590-25-000130 |
| NVDA | FY2024 | 2024-01-28 | 0001045810-24-000029 |
| NVDA | FY2025 | 2025-01-26 | 0001045810-25-000023 |
| NVDA | FY2026 | 2026-01-25 | 0001045810-26-000021 |
| VRT | FY2023 | 2023-12-31 | 0001628280-24-006498 |
| VRT | FY2024 | 2024-12-31 | 0001628280-25-005905 |
| VRT | FY2025 | 2025-12-31 | 0001674101-26-000008 |
| ANET | FY2023 | 2023-12-31 | 0001596532-24-000043 |
| ANET | FY2024 | 2024-12-31 | 0001596532-25-000028 |
| ANET | FY2025 | 2025-12-31 | 0001596532-26-000013 |
| CLS | FY2023 | 2023-12-31 | 0001030894-24-000009 |
| CLS | FY2024 | 2024-12-31 | 0001030894-25-000014 |
| CLS | FY2025 | 2025-12-31 | 0001030894-26-000011 |
| JBL | FY2023 | 2023-08-31 | 0001193125-23-259599 |
| JBL | FY2024 | 2024-08-31 | 0001628280-24-043960 |
| JBL | FY2025 | 2025-08-31 | 0001628280-25-045293 |
| FLEX | FY2024 | 2024-03-31 | 0000866374-24-000021 |
| FLEX | FY2025 | 2025-03-31 | 0000866374-25-000027 |
| FLEX | FY2026 | 2026-03-31 | 0000866374-26-000012 |
| SANM | FY2023 | 2023-09-30 | 0000897723-23-000028 |
| SANM | FY2024 | 2024-09-28 | 0000897723-24-000056 |
| SANM | FY2025 | 2025-09-27 | 0000897723-25-000042 |
Disclaimer
Financial statement figures in this document are taken from annual and quarterly reports and current reports filed with the United States Securities and Exchange Commission, retrieved through the SEC-API.io service. Share prices are closing prices from market data. Forward figures are estimates built on the assumptions stated beside them and are not forecasts of results. This document is not financial advice, is not a recommendation to buy or sell any security, and states no view on whether any security is correctly priced.
