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 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]

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]

Core Viewpoint - Super Micro Computer, Inc. (SMCI) reported disappointing first-quarter 2026 earnings, missing both revenue and earnings estimates, leading to a decline in stock price [1][2]. Financial Performance - Quarterly earnings were reported at 35 cents per share, below the analyst consensus estimate of 40 cents [2]. - Revenue for the quarter was $5.01 billion, missing the analyst consensus estimate of $5.99 billion and down from $5.93 billion in the same period last year [2][5]. - Gross margin decreased to 9.3% from 13.1% in the first quarter of 2025 [5]. Future Outlook - For the second quarter, Super Micro expects adjusted EPS in the range of 46 cents to 54 cents, lower than the analyst estimate of 61 cents [3]. - Revenue guidance for the second quarter is projected between $10 billion and $11 billion, significantly higher than the $7.82 billion estimate [3]. Stock Performance - Following the earnings report, SMCI stock fell by 6.32%, trading at $44.50 in extended trading [3].

Core Viewpoint - Super Micro Computer missed Wall Street estimates for quarterly profit and revenue due to a shift in delivery schedules for large AI deals, resulting in an over 8% drop in shares during extended trading [1] Group 1: Financial Performance - The company reported first-quarter revenue of $5 billion, which fell short of analysts' average estimate of $6 billion [4] - Adjusted earnings were 35 cents per share, below the expected 40 cents [4] - Super Micro forecasts second-quarter revenue between $10 billion and $11 billion, exceeding analysts' average estimate of $7.83 billion [5] - The annual revenue forecast was raised to $36 billion from the previous projection of $33 billion [5] Group 2: Operational Challenges - Nearly $1.5 billion in revenue was shifted from the September quarter to the December quarter due to last-minute configuration upgrades by a high-volume customer [2] - The complexity of new GPU racks necessitated intricate integration, testing, and validation, making sourcing and building more time-consuming [2] Group 3: Market Position and Demand - Super Micro has over $13 billion in orders for the Nvidia Blackwell Ultra-based GB300 product line [4] - The company's growth is heavily reliant on data center demand, with a focus on AI GPU platforms as a key growth driver [3][4] - Collaboration with Nvidia positions Super Micro to be among the first to market with systems built around new chip architecture [3]

Core Insights - Super Micro Computer forecasts second-quarter revenue above Wall Street estimates, indicating strong demand for its servers designed for artificial intelligence workloads [1] Company Summary - The company is experiencing robust demand for its AI-tailored servers, which is reflected in its revenue forecast exceeding market expectations [1]

Core Insights - The company is part of the AI server market and is expected to face challenges in the current quarter, with a focus on future guidance rather than immediate results [1][4] - Revenue growth is projected at approximately 2.5% year-over-year, which is considered modest in the context of the AI sector, while a more significant growth of 40% is anticipated in the following period [3] - The company pre-announced a revenue estimate of around $5 billion for the September quarter, falling short of the $6.5 billion consensus, and acknowledged delivery delays [4] Revenue and Earnings - Revenue is expected to grow about 2.5% year-over-year, indicating a relatively weak performance compared to the broader AI market [3] - The company has reiterated its full fiscal year revenue guidance for 2026 at a minimum of $33 billion [4] Stock Volatility - The stock has shown significant volatility, with a potential one-day move of about 10.3% and an estimated move of 11.5% by the end of the week [5] - Historical performance indicates that the stock dropped 18% following the last earnings report, and it has missed earnings expectations five times in a row [6][7] Options Market Activity - There is a notable interest in options trading, with a ratio of approximately 1.5 times more calls than puts, indicating a bullish sentiment [9][10] - The maximum pain level for options is identified at $51, suggesting that a slight upward movement could lead to significant losses for options holders if the stock closes near this level [10]