Super Micro Computer (NASDAQ: SMCI) shares rose about 9% to $34.12 in Wednesday’s premarket trading after the AI server manufacturer reported record quarterly revenue, exceeded earnings expectations, and raised its fiscal 2027 sales forecast.
Supermicro reported $19.95 billion in revenue for its fiscal first quarter ended September 30, nearly quadrupling the $5.02 billion recorded a year earlier. Adjusted earnings reached $1.81 per share, compared with analysts’ expectations of $1.23. Revenue also exceeded the $16.39 billion consensus estimate compiled by LSEG.
The company increased its fiscal 2027 revenue forecast to $72 billion–$82 billion from $65 billion–$72 billion. It also projected second-quarter sales of $19.5 billion–$21.5 billion, above Wall Street’s $17.14 billion estimate.
The results surpassed Supermicro’s October 20 preliminary revenue forecast of $18.5 billion–$19.5 billion.
SMCI closed the previous regular session at $31.39, gaining 3.12% and ending a three-session losing streak. Despite the premarket rebound, shares remained about 22% below their October 2 close of $43.69.
Separately, Super Micro Computer Tokenized bStocks (SMCIB) traded at $34.16, up 9.32% over the preceding 24 hours, according to CoinMarketCap. The tokenized instrument’s 24-hour performance is distinct from the Nasdaq-listed stock’s premarket movement.
Previously Delayed Deployments Lifted Quarterly Sales
During the earnings call, Chief Financial Officer Mark Long disclosed that approximately $2.3 billion of first-quarter revenue came from deployments originally scheduled for earlier periods.
Those deliveries had been delayed because customers and their data centers were not ready to receive the equipment. Excluding the delayed deployments, quarterly revenue would have been approximately $17.6 billion.
Long said the company’s fiscal 2027 forecast does not assume a repeat of that unusually large contribution from previously delayed deployments. Management expects continued growth in underlying demand but identified component shortages and customers’ data-center readiness as factors affecting delivery schedules.
One Customer Accounted for 44% of Sales; Gross Margin Fell From Prior Quarter
Long also disclosed that one large data-center customer accounted for 44% of first-quarter revenue. Two customers represented 49% and 17% of outstanding accounts receivable, respectively, at September 30.
AI-related solutions accounted for about 71% of quarterly revenue, up from 59% in the previous quarter. Management expects this share to range from 70% to 80% in fiscal 2027.
Supermicro’s GAAP gross margin narrowed to 12.7% from 17.5% in the previous quarter but remained higher than the 9.3% recorded a year earlier. Long attributed the sequential decline partly to a greater share of revenue from large AI deployments, which generally carry lower margins than enterprise and channel sales.
Long said Supermicro expects fiscal 2027 gross margin of 11.8%–12.2% and lower margins in the second half than in the first as large AI deployments take a greater share of sales.
Operating activities used $434 million in cash during the quarter, while deferred revenue increased approximately $3.1 billion, largely reflecting customer payments received before delivery. The average collection period for accounts receivable shortened from 59 days to 36 days.
Supermicro ended September with $6.9 billion in cash and cash equivalents and $8.6 billion in bank debt and convertible notes.
Long said the company currently has no plans to raise additional equity. He added that management could evaluate financing options if attractive business opportunities required additional capital.