Super Micro Computer Inc (NASDAQ:SMCI) reported a sharp increase in fourth quarter profit as margins improved, while revenue came in slightly below analysts' expectations. The company's shares were up about 14% at about $36 on the report. For the quarter ended June 30, Supermicro reported adjusted earnings per share of $1.70, compared with the $0.92 expected by analysts.
Revenue rose to $11.1 billion from $10.2 billion in the prior quarter and $5.8 billion a year earlier, but fell short of the $11.6 billion analyst estimate. Gross margin increased to 17.5% from 9.9% in the third quarter and 9.5% a year earlier. On a non-GAAP basis, gross margin was 17.6%.
Net income rose to $1.18 billion, or $1.62 per diluted share, from $483 million, or 72 cents per share, in the prior quarter. Non-GAAP net income attributable to common stockholders was $1.70 per diluted share, compared with 41 cents a year earlier. Supermicro said it generated more than $60 billion in new orders during fiscal 2026 and entered fiscal 2027 with record backlog.
The company also said it added several hundred enterprise and other customers over the past year. "Our Total AI/IT Solutions strategy continues to deliver strong results, we added several hundred enterprise and other customers in the past year, generated more than $60 billion in new orders, and booked record backlog entering fiscal 2027," CEO Charles Liang said. "As demand accelerates, we are improving profitability through a richer enterprise customer mix and broader adoption of our optimized Data Center Building Block Solutions® (DCBBS) architecture." For the full fiscal year, revenue increased to $39.1 billion from $22 billion a year earlier.
Gross margin was 10.8%, compared with 11.1% in fiscal 2025, while net income rose to $2.2 billion, or $3.26 per diluted share, from $1 billion, or $1.68 per diluted share. Non-GAAP net income attributable to common stockholders was $2.5 billion, or $3.63 per diluted share, compared with $1.3 billion, or $2.06 per diluted share, in the prior fiscal year. Supermicro ended the fiscal year with $7.5 billion in cash and cash equivalents, while total bank debt and convertible notes stood at $8.7 billion.
For the first quarter of fiscal 2027, the company expects revenue of $14.5 billion to $15.5 billion, along with GAAP diluted earnings per share of 89 cents to 98 cents and non-GAAP diluted earnings per share of $1.01 to $1.10. For the full fiscal year, Supermicro expects revenue of $65 billion to $72 billion. Wedbush analysts viewed Supermicro's fourth-quarter results and fiscal 2027 outlook as reasonable, while maintaining a Neutral rating and raising their price target to $40 from $36.
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