Server technology company Super Micro Computer missed estimates on earnings and revenue last quarter, and issued weaker-than-expected guidance.
Revenue was US$5.76 billion, up from $5.35 billion one year ago but below LSEG estimates of $5.89 billion. Non-GAAP diluted earnings per share were $0.41, down from $0.54 and missing expectations of $0.44.
“We made solid progress in FY25 by growing our AI solution leadership in Neoclouds, CSPs, Enterprises, and Sovereign entities, which fueled our 47% annual growth,” said Supermicro CEO Charles Liang.
“With support from our expanding global operations that help mitigate tariffs and regional costs, combined with a growing enterprise customer base, AI product innovations, and robust [Datacenter Building Block Solutions]-powered total solutions, we’re on track to grow more large-scale datacentre customers from four in FY25 to six to eight in FY26.”
Net income was US$195.15 million last quarter, down from $297.24 million year-over-year. Demand for Supermicro's servers has slowed significantly from its surge in 2023.
Across the twelve months to June, income was US$1.05 billion, falling from $1.15 billion.
Operating expenses rose to US$315.71 million last quarter, from $257.54 million one year ago. Research and development costs also increased from US$28.89 million to $53.85 million.
The company’s guidance next quarter projects revenue of US$6.0-7.0 billion, with $0.40-0.52 in earnings per diluted share. LSEG expectations were $6.6 billion in revenue and $0.59 per share.
Supermicro’s (NASDAQ: SMCI) share price closed at US$57.26, but dropped by 16.2% in after-hours trading to $47.98 after the earnings release. Its market capitalisation is $34.17 billion.
Related content
