Supermicro Announces Second Quarter Fiscal Year 2026 Financial Results

SAN JOSE, Calif.--( BUSINESS WIRE)--Super Micro Computer, Inc. (NASDAQ: SMCI) (“Supermicro” or the “Company”), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced unaudited financial results for its second quarter of fiscal year 2026 ended December 31, 2025.

Second Quarter Fiscal Year 2026 Highlights

“With our leading AI server and storage technology foundation, strong customer engagements, and expanding global manufacturing footprint, we are scaling rapidly to support large AI and enterprise deployments while continuing to strengthen our operational and financial execution,” said Charles Liang, Founder, President and CEO of Supermicro. “Our DCBBS, Data Center Building Block Solutions, enable customers to scale faster, greener, and at lower cost, Supermicro is well positioned to capture the next wave of AI and IT infrastructure demand.”

As of December 31, 2025, total cash and cash equivalents was $4.1 billion and total bank debt and convertible notes were $4.9 billion.

Business Outlook

The Company expects net sales of at least $12.3 billion for the third quarter of fiscal year 2026 ending March 31, 2026, GAAP net income per diluted share of at least $0.52 and non-GAAP net income per diluted share of at least $0.60. The Company’s projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 19.6% and 20.2%, respectively, and a fully diluted share count of 684 million shares for GAAP and fully diluted share count of 699 million shares for non-GAAP. The outlook for the third quarter of fiscal year 2026 GAAP net income per diluted share includes approximately $62 million in expected stock-based compensation, net of related tax effects of $19 million that are excluded from non-GAAP net income per diluted share.

For fiscal year 2026, the Company expects net sales of at least $40.0 billion.

Conference Call and Webcast Information

Supermicro will present a live audio webcast of our conference call to review its second quarter of fiscal year 2026 financial results on Tuesday, February 3, 2026, at 5:00 p.m. ET / 2:00 p.m. PT. The webcast will be available at https://ir.supermicro.com.

A replay of the webcast will be available shortly after the call at the same website and will remain accessible for one year.

Forward Looking Statements and Other Disclosures

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,” “estimate,” “expect,” “may,” "plan,” “seek,” “should,” “will,” “would” “optimistic” or similar expressions and the negatives of those terms. Such forward looking statements may include statements regarding, among other things, guidance for the third quarter of fiscal year 2026 and updated full year fiscal 2026 guidance, expectations that additional customer commitments will be secured in the upcoming quarters of fiscal year 2026, meeting the Company's long-term targets and capitalizing on the growing market opportunity in the long-term, and our progressing leadership in DCBBS, DLC and AI technology. Such forward looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from those anticipated, including: (i) our quarterly operating results may fluctuate, (ii) as we increasingly target larger customers and larger sales opportunities, our customer base may become more concentrated, our cost of sales may increase, our margins may be lower and our sales may become less predictable for a variety of reasons, many of which are not in our control, (iii) the average sales prices for our server solutions could decline if customers do not continue to purchase our latest generation products or additional components, and (iv) adverse economic conditions could affect our business, including, but not limited to, increased tariffs. Certain prior period amounts have been reclassified to conform to the current period presentation. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward looking statements are detailed in our filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings, particularly in our Annual Report on Form 10-K for our fiscal year ended June 30, 2025.

About Super Micro Computer, Inc.

Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. We are a Total IT Solutions manufacturer with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).

Supermicro, Server Building Block Solution, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.

All other brands, names, and trademarks are the property of their respective owners.

SUPER MICRO COMPUTER, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

December 31,

June 30,

2025

ASSETS

Current assets:

Cash and cash equivalents

4,091,083

5,169,911

Accounts receivable, net of allowance for credit losses

11,004,122

2,203,942

Inventories

10,595,448

4,680,375

Prepaid expenses and other current assets

433,944

247,426

Total current assets

26,124,597

12,301,654

Property, plant, and equipment, net

538,584

504,488

Deferred income taxes, net

655,367

607,416

Other assets

683,062

604,871

Total assets

28,001,610

14,018,429

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

13,753,207

1,281,977

Accrued liabilities

548,179

565,637

Income taxes payable

118,700

53,381

Lines of credit and current portion of term loans

201,776

75,060

Deferred revenue

774,846

368,737

Total current liabilities

15,396,708

2,344,792

Deferred revenue, non-current

527,909

362,645

Term loans, non-current

21,437

37,415

Convertible notes

4,654,623

4,645,178

Other long-term liabilities

408,756

326,528

Total liabilities

21,009,433

7,716,558

Stockholders’ equity:

Common stock and additional paid-in capital

2,987,932

2,866,449

Accumulated other comprehensive income

695

705

Retained earnings

4,003,388

3,434,539

Total Super Micro Computer, Inc. stockholders’ equity

6,992,015

6,301,693

Non-controlling interest

162

178

Total stockholders’ equity

6,992,177

6,301,871

Total liabilities and stockholders’ equity

28,001,610

14,018,429

SUPER MICRO COMPUTER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

Three Months Ended December 31,

Six Months Ended December 31,

2025

2024

2025

2024

Net sales

12,682,491

5,677,962

17,700,281

11,615,218

Cost of sales

11,883,924

5,007,940

16,434,341

10,169,616

Gross profit

798,567

670,022

1,265,940

1,445,602

Operating expenses:

Research and development

180,761

158,229

354,075

290,472

Sales and marketing

73,078

79,568

121,006

148,422

General and administrative

70,430

63,601

134,305

128,885

Total operating expenses

324,269

301,398

609,386

567,779

Income from operations

474,298

368,624

656,554

877,823

Other income, net

225

4,183

3,409

Interest income

51,042

8,776

102,398

16,783

Interest expense

(25,358

)

(6,535

)

(50,289

)

(23,889

)

Income before income tax provision

500,207

375,048

708,759

874,126

Income tax provision

(99,151

)

(56,969

)

(139,312

)

(131,701

)

Share of (loss) gain from equity investee, net of taxes

(492

)

2,517

(598

)

2,498

Net income

400,564

320,596

568,849

744,923

Net income per common share (A):

Basic

0.67

0.54

0.95

1.26

Diluted

0.60

0.51

0.86

1.17

Weighted-average shares used in the calculation of net income per common share (A):

Basic

598,004

592,507

596,814

591,033

Diluted

693,989

636,047

674,068

637,597

(A) Reflects a ten-for-one stock split on September 30, 2024.

Stock-based compensation is included in the following cost and expense categories by period (in thousands):

Three Months Ended December 31,

Six Months Ended December 31,

2025

2024

2025

2024

Cost of sales

6,803

6,694

13,878

10,653

Research and development

59,542

50,809

116,975

87,336

Sales and marketing

10,324

9,559

21,424

17,322

General and administrative

13,816

15,060

27,347

30,825

Stock-based compensation expense, before taxes

90,485

82,122

179,624

146,136

SUPER MICRO COMPUTER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Six Months Ended

December 31,

2025

2024

OPERATING ACTIVITIES:

Net income

568,849

744,923

Reconciliation of net income to net cash (used in) provided by operating activities:

Depreciation and amortization

25,354

18,557

Amortization of right-of-use (“ROU”) assets

17,670

5,991

Amortization of debt discount and issuance costs

9,506

4,415

Inventory valuation adjustment write-down

169,100

34,032

Stock-based compensation expense

179,624

146,136

Impairment loss

13,747

—

Share of loss (gain) from equity investee

598

(2,498

)

Unrealized foreign currency exchange loss (gain)

159

(300

)

Deferred income taxes, net

(51,875

)

(76,078

)

Other non-cash income, net

(8,705

)

(4,125

)

Changes in operating assets and liabilities:

Accounts receivable, net

(8,792,828

)

(319,374

)

Inventories

(6,088,819

)

699,613

Prepaid expenses and other assets

(58,855

)

(398,769

)

Accounts payable

12,466,768

(906,916

)

Accrued liabilities

(39,661

)

(59,654

)

Income taxes payable

68,041

96,845

Deferred revenue

571,373

182,276

Other long-term liabilities

8,533

4,073

Net cash (used in) provided by operating activities

(941,421

)

169,147

INVESTING ACTIVITIES:

Purchases of property, plant, and equipment

(53,491

)

(71,836

)

Investment in equity securities

(25,000

)

—

Net cash used in investing activities

(78,491

)

(71,836

)

FINANCING ACTIVITIES:

Proceeds from lines of credit and term loans

238,800

1,306,777

Repayment of lines of credit and term loans

(123,391

)

(1,574,059

)

Payment of debt issuance costs

(9,785

)

—

Proceeds from exercise of stock options

12,925

6,869

Payment for withholding taxes related to settlement of equity awards

(71,066

)

(77,036

)

Other

Net cash provided by (used in) financing activities

47,497

(337,434

)

Effect of exchange rate fluctuations on cash

(6,161

)

837

Net decrease in cash, cash equivalents and restricted cash

(978,576

)

(239,286

)

Cash, cash equivalents and restricted cash at the beginning of the period

5,172,301

1,670,273

Cash, cash equivalents and restricted cash at the end of the period

4,193,725

1,430,987

Supplemental disclosure of cash flow information:

Cash paid for interest

40,470

19,006

Cash paid for taxes, net of refunds

90,574

57,029

Non-cash investing and financing activities:

Unpaid property, plant, and equipment purchases

17,131

26,674

ROU assets obtained in exchange for operating lease commitments

94,073

18,472

Transfer of inventory to property, plant, and equipment, net

4,646

3,238

SUPER MICRO COMPUTER, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands, except per share amounts)

(unaudited)

Use of Non-GAAP Financial Measures

To supplement its condensed consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures. The specific non-GAAP measures presented below are: gross profit, gross margin; operating expenses; net income; net income per common share; diluted net income; diluted net income per common share, adjusted earnings before interest, taxes, depreciation, and amortization, (“Adjusted EBITDA”); and effective tax rate. Management believes these non-GAAP measures provide useful information to investors by offering a consistent basis for comparing the Company's performance across periods, excluding items that are not reflective of our core operating results. These non-GAAP measures are not prepared in accordance with GAAP or intended to be a replacement for GAAP financial data; and therefore, should be reviewed together with the GAAP measures and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.

We exclude the following adjustments from our non-GAAP financial measures:

Non-GAAP Adjustments

Pursuant to the requirements of SEC Regulation G, please see the tables below for the reconciliations of GAAP to Non-GAAP measures. These should be read together with the preceding financial statements prepared in accordance with GAAP.

Reconciliation of GAAP Net Income to Adjusted EBITDA:

Three Months Ended

Six Months Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

GAAP Net Income

400,564

320,596

568,849

744,923

Interest expense

25,358

6,535

50,289

23,889

Income tax provision

99,151

56,969

139,312

131,701

Depreciation and amortization

13,013

9,183

25,354

18,557

Stock-based compensation

90,485

82,122

179,624

146,136

Adjusted EBITDA

628,571

475,405

963,428

1,065,206

Adjusted EBITDA % of net sales

5.0

8.4

5.4

9.2

Reconciliation of GAAP to Non-GAAP Gross Margin:

Three Months Ended

Six Months Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

GAAP Gross Profit

798,567

670,022

1,265,940

1,445,602

Stock-based compensation

6,803

6,694

13,878

10,653

Non-GAAP Gross Profit

805,370

676,716

1,279,818

1,456,255

GAAP gross margin (%)

6.3

11.8

7.2

12.4

Stock-based compensation (%)

0.1

—

0.1

Non-GAAP gross margin (%)

6.4

11.9

7.2

12.5

*Represents an amount less than 0.1%.

Reconciliation of GAAP to Non-GAAP Operating Expenses:

Three Months Ended

Six Months Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

GAAP Operating Expenses

324,269

301,398

609,386

567,779

Adjustments to operating expenses

GAAP R&D operating expenses

180,761

158,229

354,075

290,472

Stock-based compensation

(59,542

)

(50,809

)

(116,975

)

(87,336

)

Non-GAAP R&D operating expenses

121,219

107,420

237,100

203,136

GAAP S&M operating expenses

73,078

79,568

121,006

148,422

Stock-based compensation

(10,324

)

(9,559

)

(21,424

)

(17,322

)

Non-GAAP S&M operating expenses

62,754

70,009

99,582

131,100

GAAP G&A operating expenses

70,430

63,601

134,305

128,885

Stock-based compensation

(13,816

)

(15,060

)

(27,347

)

(30,825

)

Non-GAAP G&A operating expenses

56,614

48,541

106,958

98,060

Non-GAAP Operating Expenses

240,587

225,970

443,640

432,296

Reconciliation of GAAP to Non-GAAP Net Income:

Three Months Ended

Six Months Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

GAAP Net Income - basic

400,564

320,596

568,849

744,923

Adjustments related to stock-based compensation:

Cost of sales

6,803

6,694

13,878

10,653

Operating expenses

83,682

75,428

165,746

135,483

Total adjustments to GAAP income before income tax provision

90,485

82,122

179,624

146,136

Income tax effect of non-GAAP adjustments

(22,459

)

(19,136

)

(41,660

)

(35,009

)

Non-GAAP net income - basic

468,590

383,582

706,813

856,050

GAAP net income - basic

400,564

320,596

568,849

744,923

Convertible notes interest charge, net of tax

17,888

1,110

10,986

3,859

GAAP net income - diluted

418,452

321,706

579,835

748,782

Non-GAAP net income - basic

468,590

383,582

706,813

856,050

Convertible notes interest charge, net of tax

17,888

1,110

10,986

3,859

Non-GAAP net income - diluted

486,478

384,692

717,799

859,909

Weighted-average shares used in the calculation of net income per common share:

Basic - GAAP

598,004

592,507

596,814

591,033

Basic - Non-GAAP

598,004

592,507

596,814

591,033

Diluted - GAAP

693,989

636,047

674,068

637,597

Non-GAAP adjustment

15,126

10,624

14,259

9,777

Diluted - Non-GAAP

709,115

646,671

688,327

647,374

Three Months Ended

Six Months Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

GAAP Net Income per common share - basic

0.67

0.54

0.95

1.26

Adjustments to GAAP:

Stock-based compensation

0.15

0.14

0.30

0.25

Income tax

(0.04

)

(0.03

)

(0.07

)

(0.06

)

Non-GAAP Net Income per common share - basic

0.78

0.65

1.18

1.45

GAAP net income per common share - diluted

0.60

0.51

0.86

1.17

Adjustments to GAAP:

Stock-based compensation

0.13

0.12

0.25

0.22

Income tax

(0.04

)

(0.04

)

(0.07

)

(0.06

)

Non-GAAP Net Income per common share – diluted

0.69

0.59

1.04

1.33

GAAP to Non-GAAP Effective Tax Rate:

Three Months Ended

Six Months Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

GAAP effective tax rate

19.8

15.2

19.7

15.1

Total adjustments to GAAP provision to income tax

0.8

1.4

0.7

1.2

Non-GAAP effective tax rate

20.6

16.6

20.4

16.3