Supermicro Q1 Revenue Reaches $19.95 Billion, Up 298%

Super Micro Computer reported preliminary record revenue of $19.95 billion for its fiscal first quarter of 2027, nearly quadrupling from a year earlier as the server maker expanded deliveries of rack-scale AI infrastructure. The sharp sales increase was accompanied by a sequential decline in non-GAAP gross margin and negative operating cash flow, highlighting the financial trade-offs associated with rapidly scaling large infrastructure deployments.

Revenue for the quarter ended September 30, 2026, increased 298% year over year and 79% from the preceding quarter. Non-GAAP gross margin was 12.8%, up 330 basis points from a year earlier but down 480 basis points sequentially.

Non-GAAP diluted earnings were $1.81 per share, representing increases of $1.46 year over year and $0.11 quarter over quarter. Cash flow from operations was negative $434 million. Chief Executive Charles Liang said the quarter generated more than $2 billion of EBITDA, compared with approximately $3 billion for the full 2026 fiscal year.

AI infrastructure and data-center expansion

Supermicro attributed its operating focus to the expansion of its Data Center Building Block Solutions, or DCBBS, offering. The portfolio combines plug-and-play rack-scale systems with liquid-cooling infrastructure, networking, data-center management software and onsite services.

The company said it is delivering systems based on NVIDIA’s Vera CPU and Vera Rubin platforms, GB300 NVL72, HGX B300 and RTX 6000 Pro products, as well as AMD MI350 and MI355 accelerators. It is also pursuing partnerships intended to broaden the reach of its liquid- and air-cooled systems, including work involving the Cisco Secure AI Factory with NVIDIA and jointly validated AI solutions with NetApp.

Supermicro is scaling manufacturing and using automation to streamline operations and logistics. Its projected fiscal 2027 capacity exceeds 8,000 racks per month, split between 4,000 direct-liquid-cooled racks and 4,000 air-cooled racks. The company expects volume production of racks supporting as much as 240 kilowatts during the fiscal year and is preparing for designs reaching 500 kilowatts.

Manufacturing expansion includes additional buildings at its Silicon Valley Green Computing Park, rack-scale and DCBBS production in the Asia-Pacific region, and subsystem and rack-scale operations at its Malaysia campus. The company is also planning additional capacity in Silicon Valley, Taiwan, the Americas and the Middle East.

Fiscal 2027 outlook

For the second quarter, Supermicro expects revenue of $19.5 billion to $21.5 billion. It forecasts GAAP diluted earnings of $1.59 to $1.83 per share and non-GAAP diluted earnings of $1.66 to $1.90 per share.

The GAAP forecast includes about $89 million of expected stock-based compensation expense, net of $22 million in related tax effects. That expense is excluded from the non-GAAP per-share estimate.

For the full 2027 fiscal year, management expects revenue of $72 billion to $82 billion and gross margin of 11.8% to 12.2%.

The company cautioned that quarterly results may fluctuate as it targets larger customers and sales opportunities. That strategy could increase customer concentration and cost of sales, reduce margins and make revenue less predictable. Other identified risks include declining average selling prices if customers do not continue buying the latest products or additional components, as well as adverse economic conditions and higher tariffs.

The financial figures are preliminary and unaudited because Supermicro had not completed its closing procedures as of the November 3 presentation. The company said final results could differ materially after management and audit committee reviews and completion of the financial reporting process.