Data center infrastructure company Supermicro (SMCI) reported its fiscal first quarter earnings after the bell on Tuesday, beating Wall Street’s expectations on the top and bottom lines and providing a better-than-anticipated outlook for Q2.
The company said it anticipates Q2 sales of between $19.5 billion and $21.5 billion. Analysts were calling for $16.35 billion.
Supermicro stock rose more than 5% immediately following the news.
“Supermicro’s transformation into a Total AI and IT Datacenter Solution provider continues to accelerate, delivering record revenue of $19.9 billion for the first quarter fiscal 2027,” CEO Charles Liang said in a statement.
“[Data Center Building Block Solutions] is driving significant value for our customers — from gigawatt-scale data centers down to single-container PODs — which, including our expanding software, proactive service, and networking solutions, is enhancing profitability and long-term shareholder value. Through key enterprise partnerships and expanding global production capacity, we are making AI infrastructure faster to deploy, with superior uptime and more cost-effective for our customer base.”
For the quarter, the company reported earnings per share (EPS) of $1.81 and revenue of $19.95 billion, well ahead of Wall Street’s projections and the company’s preliminary results.
Gross margins topped 12.8%, also topping Supermicro’s preliminary numbers of between 12% and 12.5%.
Supermicro stock fell a staggering 27% over the last month after Gartner issued a report saying that 80% of neocloud companies would cease operations by 2030 due to a lack of a return on invested capital.
Neoclouds CoreWeave (CRWV) and Nebius (NBIS) plunged on the news and are down 40% and 37%, respectively, in the last month. CoreWeave is a Supermicro customer.
Supermicro stock has had a rough year, plummeting 38% over the last 12 months on questions about its profitability.
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