On May 5, 2026, Super Micro’s stock soared by 18% in after-hours trading, even as the company reported mixed earnings results. This unexpected surge stemmed from strong guidance and a recovery in gross margins.
For the third quarter, Super Micro recorded an adjusted earnings per share of 84 cents, surpassing analysts’ expectations of 62 cents. However, the company’s revenue came in at $10.24 billion, falling short of the anticipated $12.33 billion.
Despite this revenue miss, Super Micro achieved a remarkable 123% year-over-year increase, underscoring its robust position in the AI infrastructure and data center business. The company’s gross margin improved to 9.9%, up from 6.3% in the previous quarter and 9.6% in the same quarter last year.
Charles Liang, CEO of Super Micro, expressed optimism about future prospects: “Several customers were not yet equipped with the power and networking required for their cloud deployment, and we expect to capture this revenue in the coming quarters.” He added that the company’s transformation into a total data center infrastructure provider is accelerating.
The financial results also revealed that Super Micro’s net income for Q3 reached $483 million, compared to $401 million in Q2 and just $109 million in Q3 of the previous year. The upcoming quarter looks promising as well; the company expects earnings per share between 65 cents and 79 cents, with revenue projected between $11 billion and $12.5 billion.
However, not all news was positive. Super Micro’s stock has faced challenges, being down 5% year-to-date and 13% over the past twelve months. Analysts from Citi and Mizuho have adjusted their price targets for SMCI stock to $31 and $30, respectively, while maintaining ‘Neutral’ ratings.
The company is actively expanding its manufacturing facilities in Silicon Valley to meet rising demand driven by AI technologies. Yet uncertainties linger—customer readiness has delayed revenue recognition during this quarter, and the outcome of an independent review regarding export-control issues remains unclear.
