Financial Data and Key Metrics Changes - Q1 fiscal year 2026 revenue was $5 billion, down 15% year-over-year and down 13% quarter-over-quarter, compared to guidance of $6 billion-$7 billion [15] - Non-GAAP gross margin for Q1 was 9.5% versus 9.6% in Q4 [17] - GAAP diluted EPS was $0.26 compared to guidance of $0.30-$0.42, and non-GAAP diluted EPS was $0.35 versus guidance of $0.40-$0.52 [18] - Cash flow used in operations for Q1 was $918 million compared to cash flow generated from operations of $864 million in the prior quarter [18] - Q1 closing inventory was $5.7 billion, up from $4.7 billion in Q4 [18] Business Line Data and Key Metrics Changes - AI GPU platforms represented over 75% of Q1 revenues, continuing to be the key growth driver [15] - Enterprise channel revenues totaled $1.5 billion, representing 31% of revenues, down from 36% in the prior quarter [15] - OEM appliance and large data center segment revenues were $3.4 billion, representing 68% of Q1 revenues, up from 63% in the last quarter [16] Market Data and Key Metrics Changes - By geography, the U.S. represented 37% of Q1 revenues, Asia 46%, Europe 14%, and the rest of the world 3% [16] - Year-over-year, U.S. revenues decreased 57%, while Asia grew 143% [16] - Asia's growth was attributed to a U.S.-based customer opening a large data center in Asia [16] Company Strategy and Development Direction - The company is focused on leading the AI growth trend with innovative solutions, including the DCBBS [7] - The DCBBS is critical for future success, enabling rapid planning, design, and deployment of AI-ready data centers [9] - The company is executing an aggressive global expansion, with new production facilities in Taiwan, the Netherlands, Malaysia, and soon the Middle East [11] - The long-term goal is to expand revenues in higher margin segments such as data center building block solutions and software service offerings [21] Management's Comments on Operating Environment and Future Outlook - Management expects to ship at least $10.5 billion in the December quarter, with a full-year revenue outlook raised to at least $36 billion [14][22] - The company anticipates a sequential growth through fiscal 2026, driven by strong demand for AI infrastructure [14] - Management acknowledged the challenges of ramping production and the complexities of new GPU racks impacting revenue timing [8][15] Other Important Information - The company executed a $1.8 billion AR facility to strengthen working capital [19] - The Q1 cash conversion cycle was 123 days, up from 96 days in Q4 [19] - Capital expenditures for Q1 totaled $32 million, resulting in negative free cash flow of $950 million for the quarter [18] Q&A Session Summary Question: What is driving the increased revenue guidance? - Management indicated that the availability of NVIDIA Blackwell Ultra chipsets is a key driver for increased revenue guidance, alongside market share expansion [26] Question: When will DCBBS impact gross margins? - DCBBS has received positive feedback, and management expects it to ramp up quickly, contributing to higher profit margins in the future [28] Question: What components contribute to the strong order outlook? - The strong order outlook is driven by GPU products like Blackwell Ultra and AMD MI350, along with a focus on providing end-to-end data center solutions [32] Question: Is there conservatism in the revenue guidance? - Management confirmed that the revenue guidance is conservative, with expectations for continued growth as capacity and technology mature [42] Question: How is the company managing working capital? - The company has implemented an accounts receivable sale program to enhance working capital flexibility, especially as revenues double [56] Question: What is the status of the Malaysia plant? - The Malaysia plant is starting to ramp up production and is expected to contribute significantly going forward [51] Question: How does the company plan to improve margins? - Management is focused on leveraging additional business, expanding manufacturing in various geographies, and enhancing DCBBS strategies to improve margins [75]

Financial Data and Key Metrics Changes - Q1 fiscal year 2026 revenue was $5 billion, down 15% year over year and down 13% quarter over quarter, compared to guidance of $6 billion-$7 billion [14] - Non-GAAP gross margin for Q1 was 9.5% versus 9.6% in Q4 [17] - GAAP diluted EPS was $0.26 compared to guidance of $0.30-$0.42, and non-GAAP diluted EPS was $0.35 versus guidance of $0.40-$0.52 [18] - Cash flow used in operations for Q1 was $918 million compared to cash flow generated from operations of $864 million in the prior quarter [18] - Q1 closing inventory was $5.7 billion, up from $4.7 billion in Q4 [18] Business Line Data and Key Metrics Changes - AI GPU platforms represented over 75% of Q1 revenues, continuing to be the key growth driver [15] - Enterprise channel revenues totaled $1.5 billion, representing 31% of revenues, down from 36% in the prior quarter [15] - OEM appliance and large data center segment revenues were $3.4 billion, representing 68% of Q1 revenues, up from 63% in the last quarter [15] Market Data and Key Metrics Changes - By geography, the US represented 37% of Q1 revenues, Asia 46%, Europe 14%, and the rest of the world 3% [16] - Year-over-year, US revenues decreased 57%, while Asia grew 143% [16] - Asia's growth was attributed to a US-based customer opening a large data center in Asia [16] Company Strategy and Development Direction - The company is focused on leading the AI growth trend with innovative solutions, including the DCBBS [6] - The DCBBS is critical for future success, enabling rapid planning, design, and deployment of AI-ready data centers [9] - The company is executing an aggressive global expansion, with new production facilities in Taiwan, the Netherlands, Malaysia, and soon the Middle East [11] - The long-term goal is to expand revenues in higher margin segments such as data center building block solutions and software service offerings [21] Management's Comments on Operating Environment and Future Outlook - Management expects to ship at least $10.5 billion in the December quarter, with a full-year revenue outlook raised to at least $36 billion [13][24] - The company anticipates sequential growth through fiscal 2026, driven by strong demand for AI infrastructure [13] - Management acknowledged the complexity of new GPU racks causing revenue shifts from Q1 to Q2, but believes this will strengthen growth trajectory [7] Other Important Information - The company executed a $1.8 billion AR facility to strengthen working capital [19] - Q1 GAAP operating expenses were $285 million, down 10% quarter-over-quarter [17] - The company is investing in expanding its DCBBS portfolio and upcoming releases [10] Q&A Session Summary Question: What drives the increased revenue guidance? - Management indicated that the availability of NVIDIA Blackwell Ultra chipsets and market share expansion are both key drivers for increased revenue guidance [27] Question: When will DCBBS impact gross margins? - Management noted that DCBBS has been well received and is expected to ramp up quickly, with higher profit margins anticipated in the data center infrastructure sector [28] Question: What contributes to the strong order outlook? - Management highlighted that GPU products, including Blackwell Ultra and AMD MI350, are significant contributors to the strong order outlook [32] Question: Is the December quarter the low watermark for gross margins? - Management confirmed that the December quarter is expected to have lower margins due to ramping up new product lines, but improvements are anticipated in future quarters [46] Question: How does the company account for revenue push-outs? - Management acknowledged that large projects often face timing challenges due to logistics and customer readiness, which can impact quarterly results [75]

Core Viewpoint - Super Micro Computer (SMCI.US) reported first-quarter revenue of $5 billion, which fell short of analysts' average expectation of $6 billion, leading to a stock price drop of over 10% in after-hours trading. However, the company provided a second-quarter revenue forecast that exceeds Wall Street expectations, indicating strong demand for its AI-optimized servers [1]. Group 1 - Super Micro Computer's first-quarter revenue was $5 billion, below the expected $6 billion [1]. - The company's stock price declined by over 10% in after-hours trading following the earnings report [1]. - For the second quarter, Super Micro Computer expects revenue between $10 billion and $11 billion, significantly higher than the analysts' average estimate of $7.83 billion [1]. Group 2 - The optimistic second-quarter forecast suggests that Super Micro Computer is well-positioned to compete against larger rivals such as Dell and Hewlett Packard Enterprise [1]. - These competitors are also striving to provide hardware solutions to meet the surging demand for artificial intelligence [1].

Core Insights - Super Micro Computer (SMCI) missed Wall Street's expectations for its fiscal first quarter, leading to a significant drop in stock price during after-hours trading [1][5]. Financial Performance - For the quarter ending September 30, Supermicro reported adjusted earnings of $0.35 per share on sales of $5.02 billion, falling short of analyst expectations of $0.37 per share and $5.83 billion in sales. Year-over-year, earnings decreased by 52% and sales declined by 15% [2]. - The company revised its sales guidance for the September quarter, indicating that some customers postponed deliveries to the December quarter for project upgrades [3]. - For the current quarter, Supermicro anticipates adjusted earnings of $0.50 per share on sales of $10.5 billion, compared to Wall Street's expectations of $0.61 per share and $7.94 billion in sales [3]. - For the full fiscal year 2026, Supermicro expects net sales of at least $36 billion, representing a 64% increase, surpassing analyst expectations of $32.2 billion [4]. Market Reaction - Following the earnings report, SMCI stock fell over 8% in after-hours trading to $43.45, and during regular trading, it dropped 6.6% to close at $47.40 [5].

Core Insights - Super Micro Computer Inc. reported weaker-than-expected results for the fiscal first quarter, leading to a share price decline of up to 10% in extended trading [1][3] - Revenue decreased by 15% year-over-year to $5.02 billion, significantly below the expected $6 billion [1][3] - Net income fell over 60% to $168.3 million, or 26 cents per share, compared to $424.3 million, or 67 cents per share, a year earlier [2] Revenue and Earnings - The company initially expected revenue of $6 billion to $7 billion but revised its guidance down to $5 billion for the quarter [1] - Super Micro anticipates sales of $10 billion to $11 billion in the current quarter, exceeding the average estimate of $7.83 billion [2] Market Position and Trends - Super Micro has benefited from the AI boom, utilizing Nvidia's graphics processing units in its servers, but growth has stagnated recently [3] - Analysts suggest that competitors like Dell may be gaining market share, impacting Super Micro's performance [3] - Prior to the earnings report, Super Micro's stock had increased by 55% for the year [3]

Group 1: Magnum Ice Cream Co (MICC) Demerger and Listing - Magnum Ice Cream Co (MICC) is preparing for a triple listing on the London Stock Exchange, New York Stock Exchange, and Euronext Amsterdam, following its demerger from Unilever, expected in mid-November 2025 [1][2] - The demerger process is projected to incur costs of €800 million, with approximately 55% of these costs already incurred [1] - Unilever will retain a minority stake of less than 20% in Magnum for up to five years, which will be sold to cover separation costs and maintain capital flexibility [2] - Magnum reported €7.9 billion in revenue and €1.3 billion in adjusted EBITDA for 2024, holding an approximate 21% global retail market share [2] - The company has established a stable dividend policy, targeting a payout ratio of 40-60% of adjusted net income, with the first dividend expected in the first half of 2027 [2] Group 2: Corporate Earnings - Amgen (AMGN) reported a 12.4% year-on-year increase in sales to $9.56 billion, driven by strong performance from new inflammation drugs and cholesterol therapy Repatha [7] - Following its strong performance, Amgen raised its full-year profit and revenue guidance, with adjusted EPS now expected between $20.60 and $21.40 and revenue between $35.8 billion and $36.6 billion [7] - Super Micro Computer (SMCI) issued a weak profit forecast for the current quarter, adjusting its first-quarter fiscal 2026 revenue estimate to approximately $5 billion, down from $6-$7 billion [8] - Despite the short-term setback, Super Micro maintained its full-year revenue forecast of at least $33 billion, citing strong AI demand and a $12 billion backlog of new orders [8] - AMD (AMD) beat its Q3 expectations with revenues of $9.25 billion and adjusted EPS of $1.20, but its Q4 outlook did not meet investor expectations [8] Group 3: Canada's Financial Sector Reforms - Canada's government is targeting competition within its financial sector by tackling fees, simplifying the process for consumers to switch banks, and reducing regulatory burdens for smaller lenders [9] - The initiative includes prohibiting investment and registered account transfer fees, which currently cost Canadians an average of $150 per account [9] - The government plans to increase the amount of immediately available deposited cheque funds to $150 from $100 [9] Group 4: Economic Indicators - New Zealand's unemployment rate for Q3 rose to 5.3%, with no employment growth quarter-over-quarter and a year-over-year decline of -0.6% [11] - In the United States, API crude oil inventories surged by 6.5 million barrels, significantly exceeding forecasts that anticipated a draw of 2.4 million barrels [12]

Core Insights - The company anticipates revenue for fiscal 2026 to reach at least $36 billion, driven by increasing demand for AI-related Nvidia-equipped servers [1] Company Summary - The company is experiencing a surge in demand for its servers, particularly those equipped with Nvidia technology, which is contributing to the optimistic revenue forecast for fiscal 2026 [1]

FQ1 2026 Results November 4, 2025 Disclosures Cautionary Statement Regarding Forward Looking Statements Statements contained in this press release that are not historical fact may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward -looking statements can be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "es timate," "expect," "may," "pla ...

Core Insights - Super Micro is experiencing margin pressure in the latest quarter, which is indicative of a competitive server market [1] Company Summary - The company continues to face challenges related to its profit margins, suggesting that the competitive landscape in the server market is intensifying [1]

Super Micro gave an earnings forecast for the current period that fell short of estimates, reinforcing concerns about the server maker’s ability to profit from demand for AI equipment https://t.co/CmaGzjRGaH ...