How does SMCI's Q2 2025 earnings compare to expectations?

Super Micro Computer Inc. (SMCI) reported Q2 2025 earnings that were generally in line with expectations, with some notable deviations. Here's a detailed comparison:

1. **Revenue Comparison**:
- SMCI reported a total revenue of $5.68 billion for Q2 2025.
- This is slightly higher than the upper end of the company's revised guidance range of $5.5 billion to $6.1 billion.
- Analysts had collectively forecasted revenue closer to $5.77 billion.
- Thus, while the reported revenue is above the guidance, it is still aligned with the analyst expectations.

2. **Earnings Per Share (EPS) Comparison**:
- SMCI reported a diluted EPS of $0.51 for Q2 2025.
- This is slightly below the lower end of the company's EPS guidance range of $0.56 to $0.65.
- Analysts had estimated an EPS of approximately $0.61.
- The reported EPS is at the lower end of the company's guidance and slightly below analyst expectations.
3. **Key Performance Indicators (KPIs)**:
- SMCI's revenue growth was impressive, driven by strong AI demand, resulting in a 54% year-on-year increase.
- The company's gross margin was approximately 11.9%, reflecting some pressure due to product and customer mix.
- Operating margin was around 7.9%, indicating efficient operation despite margin pressures.
4. **Guidance and Outlook**:
- SMCI updated its fiscal year 2025 revenue guidance to a range of $23.5 billion to $25 billion, down from the previous $26 billion to $30 billion.
- This revision reflects a more conservative outlook, potentially influenced by the challenges in margin and cash flow.

In conclusion, while SMCI's Q2 2025 earnings showed strong revenue growth and alignment with expectations in terms of revenue, the EPS was slightly below guidance and analyst estimates. The company's strategic expansions and leadership in AI-optimized server solutions suggest a positive long-term outlook, despite facing temporary margin pressure and delays in financial reporting.