Investing.com — Super Micro Computer shares rose 6% after the company reported quarterly earnings and revenue well above Wall Street expectations, while issuing an upbeat outlook that points to continued strength in AI infrastructure spending.
The server maker, also known as Supermicro, reported adjusted earnings of $1.81 per share for its fiscal first quarter, beating the analyst consensus of $1.23. Revenue reached $19.9 billion, up 298% from $5 billion a year earlier and exceeding expectations of $16.26 billion.
The results followed a preliminary update in which the company projected revenue of $18.5 billion to $19.5 billion, citing increased demand for AI platforms. Final revenue came in above that range, while adjusted gross margin improved to 12.8%, compared with 9.5% in the year-earlier quarter.
The stronger results were accompanied by an upbeat outlook. Supermicro expects fiscal second-quarter revenue of $19.5 billion to $21.5 billion, with the midpoint comfortably above analysts’ expectations of $17.51 billion. Adjusted earnings are projected at $1.66 to $1.90 per share, compared with the $1.14 consensus.
For the full fiscal year, the company forecast revenue of $72 billion to $82 billion, putting the midpoint at $77 billion, above the $70.27 billion analyst estimate.
“Supermicro’s transformation into a Total AI and IT Datacenter Solution provider continues to accelerate, delivering record revenue of $19.9 billion for the first quarter fiscal 2027,” CEO Charles Liang said.
The results highlight the scale of demand for AI servers and data-center infrastructure, as cloud providers and other customers continue investing heavily in computing capacity. Supermicro supplies server and storage systems used in AI deployments, including platforms built around Nvidia’s accelerated computing technology.
However, the company’s cash flow remains an important consideration as it scales. Supermicro used $434 million in operating cash flow during the quarter, while reporting $6.9 billion in cash and cash equivalents against $8.6 billion in bank debt and convertible notes as of September 30.
The cash usage underscores the working-capital demands of a rapidly expanding hardware business, where inventory and customer payments can absorb substantial amounts of capital even as revenue and earnings climb.
