SMCI Q4 2026: Revenue Doubles to $11.1B, Adjusted EPS of $1.70 Smashes $0.98 Estimate

Super Micro Computer (NASDAQ: SMCI) reported fourth-quarter fiscal 2026 results for the period ended June 30, 2026, with net sales of $11.1 billion, a 93.2% year-over-year increase from $5.8 billion in Q4 2025. Adjusted EPS came in at $1.70, versus a consensus estimate of $0.98, a 74.1% positive surprise, while GAAP diluted EPS reached $1.62 compared to $0.31 in the prior-year quarter.

Q4 Fiscal 2026 Results

• Revenue: $11.1 billion in Q4 2026, up 93.2% from $5.8 billion in Q4 2025, and up from $10.2 billion in Q3 2026.
• Gross margin: 17.5% in Q4 2026, compared to 9.5% in Q4 2025 and 9.9% in Q3 2026, a year-over-year expansion of approximately 8 percentage points.
• GAAP net income: $1.178 billion in Q4 2026, up from $195 million in Q4 2025, a 503.6% year-over-year increase.
• GAAP operating income: $1.488 billion, up 551.5% from $228.4 million in Q4 2025, with a GAAP operating margin of 13.4% versus 3.97% a year earlier.
• Operating cash flow and capital expenditures: Q4 2026 cash flow provided by operations was $747 million, with capital expenditures of $25 million, yielding free cash flow of $722 million for the quarter.

What Drove the Results

The adjusted EPS of $1.70 exceeded the $0.98 consensus estimate by 74.1%, and GAAP diluted EPS of $1.62 rose 422.6% year-over-year from $0.31. The primary driver was gross margin expansion: Q4 gross margin reached 17.5%, up from 9.5% in Q4 2025, reflecting what the company described as a richer enterprise customer mix and broader adoption of its Data Center Building Block Solutions architecture. Operating income of $1.488 billion on $11.1 billion in revenue represented a GAAP operating margin of 13.4%, compared to 3.97% in the year-ago quarter.

For the full fiscal year ended June 30, 2026, net sales totaled $39.1 billion versus $22.0 billion in fiscal 2025. Full-year GAAP net income was $2.2 billion, or $3.26 per diluted share, compared to $1.0 billion, or $1.68 per diluted share, in fiscal 2025. The company reported generating more than $60 billion in new orders during the fiscal year and said it entered fiscal 2027 with a record backlog. The non-GAAP adjustment in Q4 was primarily $9 million in stock-based compensation expense, bringing non-GAAP gross margin to 17.6%.

Why It Matters

The company issued Q1 fiscal 2027 guidance calling for net sales of $14.5 billion to $15.5 billion and GAAP diluted EPS of $0.89 to $0.98, with non-GAAP diluted EPS of $1.01 to $1.10. For the full fiscal year 2027, Supermicro set net sales guidance in the range of $65.0 billion to $72.0 billion, implying continued acceleration from the $39.1 billion reported in fiscal 2026. CEO Charles Liang cited several hundred new enterprise customers added during the past year and noted that the company is expanding manufacturing scale and global compliance capabilities to support the increased order volume.

Wall Street View

Analysts had set an adjusted EPS consensus of $0.98 for the quarter, which the company exceeded by 74.1%. Following the results, multiple outlets noted that analysts lifted price targets, though some flagged that the gross margin improvement may not be sustainable at current levels. The Wall Street analyst community had a broadly mixed rating distribution as of early August 2026, with the majority of coverage sitting at Hold.

Investor Takeaway

The magnitude of Q4's gross margin expansion, from 9.5% to 17.5% year-over-year, is the result the market will scrutinize most closely: if that improvement reflects a durable shift in customer mix toward higher-margin enterprise accounts rather than a one-quarter effect, the full-year revenue guidance of $65.0 billion to $72.0 billion carries materially different earnings implications. With a record backlog entering fiscal 2027 and Q1 revenue guidance midpoint of $15.0 billion already implying sequential growth from Q4's $11.1 billion, the pace of order conversion will be the key operational metric to watch in coming quarters.