Super Micro Reports Record $39.1B Revenue, Eyes $65B–$72B in 2027

Super Micro Computer announced fiscal 2026 results that reflected unprecedented demand for AI infrastructure. Revenue reached $39.1 billion, surging 78% from $22 billion the year prior. The fourth quarter alone generated $11.1 billion in revenue, a 93% year-over-year increase and 9% sequential growth, though the company said the result landed near the low end of its $11 billion to $12.5 billion guidance due to customer delays related to power availability, cooling, and networking readiness. CFO David Weigand noted that delayed revenue is expected to be recognized in later quarters and that CEO Charles Liang characterized the issue as a timing matter rather than a change in demand.

The company's strategic direction centers on expanding from a U.S. server manufacturer into a provider of total data-center building-block solutions (DCBBS). Liang explained that these offerings combine compute, storage, direct liquid cooling, networking, management software, and lifecycle services. He described the company as a one-stop supplier for customers building data centers and AI factories, positioning Super Micro to capture a larger share of each customer's infrastructure spend.

Fiscal 2027 guidance signals accelerating growth. Supermicro projected revenue of $65 billion to $72 billion and reported that it entered the new year with a record backlog after receiving more than $60 billion in new orders during the fourth quarter. For the first quarter of fiscal 2027, the company forecast revenue of $14.5 billion to $15.5 billion, GAAP diluted EPS of $0.89 to $0.98, and non-GAAP diluted EPS of $1.01 to $1.10, with expected gross margin of 10.4% to 10.8%. Based on backlog, management expects more than 80% of future revenue to be AI-related.

Liang broke down the AI revenue composition. Pure AI is expected to account for roughly 60% to 70% of revenue, with another 10% to 20% tied to CPU-based, agentic, or edge-AI applications. The remaining portion consists of traditional servers, storage, and internet-of-things products. This framing reflects the company's view that AI applications are diversifying beyond traditional GPU-based workloads. Enterprise and channel revenue reached $5.6 billion in the fourth quarter, representing 50% of sales and increasing 172% year over year. OEM appliance and large-data-center revenue totaled $5.5 billion, or 50% of sales, rising 50% year over year but declining 26% sequentially.

To support this growth, Supermicro is aggressively expanding manufacturing capacity. The company is building a 32-acre DCBBS campus in Silicon Valley and said its U.S. footprint is approaching 4 million square feet. Total manufacturing capacity is on track to exceed 6,000 racks per month, including more than 3,000 direct-liquid-cooling racks per month. Geographic expansion spans the U.S., Taiwan, Malaysia, and the Netherlands.

Capital structure also evolved. During the quarter, Supermicro completed public equity offerings that raised $5.6 billion after expenses: $1.4 billion of common stock and $4.2 billion of mandatory convertible preferred shares. The proceeds are intended primarily to support working-capital requirements associated with new orders. Cash and cash equivalents totaled $7.5 billion at quarter end, while bank borrowings and convertible note debt totaled $8.7 billion, leaving net debt of $1.2 billion—a significant improvement from net debt of $7.5 billion at the end of the prior quarter. Weigand said the company expects its cash conversion cycle to normalize as it fulfills backlog carrying improved customer terms. Liang indicated that Supermicro believes its current cash flow will support its fiscal 2027 revenue target, though additional cash could be needed if revenue opportunities exceeded the company's stated range substantially.

Fiscal 2026 earnings grew sharply. Non-GAAP diluted earnings per share rose 76% to $3.63, while GAAP diluted EPS was $3.26, compared with $1.68 in fiscal 2025. For the fourth quarter, non-GAAP gross margin rose to 17.6%, from 10.1% in the prior quarter and well above guidance of 8.2% to 8.4%, driven primarily by favorable customer and product mix and the deferral of several contracts into fiscal 2027, with lower tariff costs and inventory reserves accounting for the remainder. Management flagged the tariff and inventory benefits as potentially nonrecurring.

Liang also stated that high-volume GPU systems generally carry lower margins than CPU, storage, IoT, and enterprise products, and that the company would carefully control the balance between revenue and profitability. He expressed confidence that the maturing DCBBS product line—including hardware, software, services, and switching products—would support higher long-term margins. Finally, the company said it would provide an update shortly on a board inquiry without offering further details.