Key Highlights

  • Net sales were USD 19.9 billion, versus USD 11.1 billion last quarter and USD 5.0 billion a year earlier.
  • Gross Margin was 12.7% versus 17.5% in the prior quarter, and non-GAAP gross margin was 12.8% for the quarter.
  • Net income was USD 1,594 million, with diluted EPS of USD 1.75 and non-GAAP diluted EPS of USD 1.81.
  • Second-quarter guidance is net sales of USD 19.5 billion to 21.5 billion and GAAP EPS of USD 1.59 to 1.83.

Net Sales and Margins

Super Micro Computer, Inc. (NASDAQ:SMCI), a provider of AI, enterprise, storage and 5G and edge IT total solutions, reported first-quarter fiscal 2027 net sales of USD 19.9 billion for the quarter ended September 30, 2026. This compares with USD 11.1 billion in the fourth quarter of fiscal 2026 and USD 5.0 billion in the first quarter of fiscal 2026. The company described the result as record revenue.

Gross margin was 12.7%, versus 17.5% in the fourth quarter of fiscal 2026 and 9.3% in the first quarter of fiscal 2026. Non-GAAP gross margin was 12.8%, compared with 9.5% a year earlier, with the adjustment consisting of stock-based compensation expense of USD 8 million.

Analyst estimates were EPS of USD 1.28 against reported EPS of USD 1.81, and Revenue of USD 16.29 billion against reported revenue of USD 19.95 billion.

Net Income and Earnings Per Share

Net income was USD 1,594 million, against USD 1,178 million in the prior quarter and USD 168 million in the first quarter of fiscal 2026. Diluted Net Income per common share was USD 1.75, versus USD 1.62 in the fourth quarter of fiscal 2026 and USD 0.26 a year earlier. Non-GAAP diluted net income per common share was USD 1.81, compared with USD 0.35 in the first quarter of fiscal 2026.

Founder, President and Chief Executive Officer Charles Liang said the company transformation into a total AI and IT datacenter solution provider continues to accelerate. He said Data Center Building Block Solutions are driving value for customers from gigawatt-scale datacenters down to single-container pods, and that the expanding software, service and networking solutions are enhancing profitability. He added that key enterprise partnerships and expanding global production capacity are making AI infrastructure faster to deploy.

Cash Flow, Balance Sheet and Outlook

Cash flow used in operations was USD 434 million for the first quarter of fiscal 2027, and capital expenditures and investments were USD 47 million. As of September 30, 2026, total cash and cash equivalents were USD 6.9 billion, and total bank Debt and convertible notes were USD 8.6 billion.

For the second quarter of fiscal 2027, ending December 31, 2026, the company guided net sales to a range of USD 19.5 billion to USD 21.5 billion. It guided GAAP net income per diluted share to USD 1.59 to USD 1.83 and non-GAAP net income per diluted share to USD 1.66 to USD 1.90. The projections assume tax rates of 21.2% for GAAP and 21.1% for non-GAAP, and fully diluted share counts of 753 million shares for GAAP and 769 million shares for non-GAAP.

The GAAP guidance includes USD 89 million of stock-based compensation expense, net of related tax effects of USD 22 million, which is excluded from non-GAAP net income per diluted share. For the full fiscal year 2027, the company guided net sales to a range of USD 72.0 billion to USD 82.0 billion. The company hosted its conference call on Tuesday, November 3, 2026, at 5:00 p.m. ET.

Items to Follow

Items to follow are the gross margin trend, Cash Flow from operations, the level of bank debt and convertible notes, and net sales against the second-quarter and full-year guidance ranges.