Supermicro Q1 sales reach $19.9 billion, Q2 guided to $19.5-21.5 billion

What Supermicro reported

Net sales were $19,945.8 million in the three months ended Sept. 30, 2026, against $5,017.8 million a year earlier, according to the income statement in the company's Form 8-K. That is growth of 297.5%, calculated from those two figures. The company's release put the prior quarter (the three months ended June 30, 2026) at $11.1 billion, so sales rose about 80% from one quarter to the next on the rounded figure.^[1]

Net income was $1,594.2 million, or $1.75 per diluted share, compared with $168.3 million, or $0.26, a year earlier. Non-GAAP diluted earnings per share were $1.81, against $0.35. Income from operations was $2,064.5 million, an operating margin of 10.3% on the filing's figures, versus $182.3 million and 3.6% a year earlier.^[1]

Charles Liang, Supermicro's founder, president and chief executive, said the company delivered "record revenue of $19.9 billion" for the quarter. Yahoo Finance reported that the result was above both Wall Street projections and the company's own preliminary figures.^[1][2]

Margins, cash flow and the balance sheet

GAAP gross margin was 12.7%, compared with 17.5% in the June quarter and 9.3% a year earlier, per the company's release. Gross profit of $2,541.0 million on sales of $19,945.8 million gives the same 12.7%. Non-GAAP gross margin was 12.8%.^[1]

Cash did not keep pace with sales. Net cash used in operating activities was $434.0 million, compared with $917.5 million used a year earlier. Accounts receivable rose by $3,559.8 million and inventories by $2,477.4 million during the quarter, while deferred revenue rose by $3,053.7 million, according to the cash flow statement. Balance sheet inventories stood at $15,053.6 million on Sept. 30, up 16.7% from $12,895.9 million on June 30.^[1]

Cash and equivalents were $6.9 billion, and total bank debt and convertible notes were $8.6 billion, the company said. Total assets were $35.7 billion, up from $29.9 billion at the end of June.^[1]

Guidance for the December quarter and fiscal 2027

Supermicro expects net sales of $19.5 billion to $21.5 billion for the second fiscal quarter, which ends Dec. 31, 2026. It guided GAAP earnings of $1.59 to $1.83 per diluted share and non-GAAP earnings of $1.66 to $1.90. For the full fiscal year 2027, which ends June 30, 2027, it expects net sales of $72.0 billion to $82.0 billion.^[1]

BigGo Finance reported that the prior full-year range was $65 billion to $72 billion, and that the company had raised its first-quarter forecast to $18.5 billion to $19.5 billion on Oct. 20. Actual sales of $19.95 billion exceeded the top of that range. Outlets cited different analyst consensus figures: BigGo, citing FactSet, gave $17.53 billion for first-quarter revenue and $73.03 billion for the full year, while Proactive Investors cited a $69.17 billion full-year consensus without naming a provider.^[4][3]

How the market reacted

Shares rose in after-hours trading on Nov. 3 after the report. Reported gains differed by outlet: BigGo put the move at 8.3%, Proactive Investors at nearly 8%, and Yahoo Finance at more than 5% immediately after the release. The after-hours figures can change before the Nov. 4 open.^[4][3][2]

What happens next

The December quarter closes on Dec. 31, 2026, and the guidance range implies sales a range from 2% below to 8% above the $19.9 billion just reported, calculated from the $19.5 billion and $21.5 billion endpoints. The release is marked preliminary: the company said its financial close for the quarter was not complete and that the figures are unaudited and may change. Supermicro's quarterly report on Form 10-Q will carry the final first-quarter numbers.^[1]