Super Micro Computer(US:SMCI) ZACKS·2025-11-06 16:25Core Insights - Super Micro Computer (SMCI) reported first-quarter fiscal 2026 earnings of $0.35 per share, exceeding the Zacks Consensus Estimate by 25%, but reflecting a 52% decline year over year [1][10] - Revenues for the same quarter were $5.02 billion, missing the Zacks Consensus Estimate by 0.56% and showing a 15.5% year-over-year decline [2][10] - The company raised its fiscal 2026 revenue outlook to at least $36 billion, up from the previous guidance of $33 billion [8][10] Financial Performance - SMCI's revenues from OEM Appliance and Large Data Center, which account for approximately 68% of total revenues, were $3.4 billion, marking a 25% year-over-year increase but a 6% sequential decline [3] - The Enterprise/Channel segment, representing around 31% of total revenues, reported $1.5 billion, reflecting a 51% year-over-year decline and a 25% sequential decline [3] - Non-GAAP gross margin was 9.5%, down from 13.1% a year ago and 9.6% in the prior quarter, attributed to a less favorable customer and product mix [5] Geographic Breakdown - The United States accounted for 37% of total sales, experiencing a 57% year-over-year decline [4] - Asia represented 46% of revenues, showing a significant 143% year-over-year increase, driven by hyperscale data center expansion [4] - Europe contributed 14% of revenues, up 11% year over year, while the Rest of the World accounted for 3%, increasing 56% from the prior-year quarter [4] Operating Expenses and Investments - Non-GAAP operating expenses were $203 million, down 2% year over year, but remained elevated due to ongoing investments in next-generation AI systems and production capacity expansion [5][6] - The company reported a negative operating cash flow of $918 million and capital expenditures of $32 million as of September 30, 2025 [7] Guidance - For the second quarter of fiscal 2026, SMCI expects net sales between $10 billion and $11 billion and non-GAAP diluted EPS of 46 cents to 54 cents [8]