Super Micro Computer 2026 Q1 Earnings Net Income Plummets 60.3% Amid Revenue Decline

Super Micro Computer reported fiscal 2026 Q1 earnings on Nov 8, 2025, with results falling short of expectations. The company posted $5.02 billion in revenue, a 15.5% decline year-over-year, and EPS of $0.28, missing the $0.46 consensus estimate. Guidance for Q2 2026 EPS is projected between $0.46 and $0.54, reflecting cautious optimism despite the challenging environment.

Revenue

The total revenue of Super Micro Computer decreased by 15.5% to $5.02 billion in 2026 Q1, down from $5.94 billion in 2025 Q1.

Earnings/Net Income

Super Micro Computer's EPS declined 61.1% to $0.28 in 2026 Q1 from $0.72 in 2025 Q1. Meanwhile, the company's net income declined to $168.28 million in 2026 Q1, down 60.3% from $424.33 million reported in 2025 Q1. Remarkably, the company has sustained profitability for more than 20 years over the corresponding fiscal quarter, underscoring strong operational resilience. The significant drop in EPS highlights a challenging quarter for profitability.

Price Action

The stock price of Super Micro Computer has edged down 0.21% during the latest trading day, plummeted 23.48% during the most recent full trading week, and dropped 32.24% month-to-date. The post-earnings reaction underscores investor concerns over the company’s near-term performance.

CEO Commentary

The CEO emphasized the company’s resilience despite the revenue and earnings decline, attributing the challenges to macroeconomic headwinds and sector-specific pressures. Strategic priorities include accelerating AI-driven infrastructure solutions and optimizing operational efficiency. Leadership remains confident in long-term growth prospects, particularly in cloud computing and data center expansion.

Guidance

The company provided Q2 2026 EPS guidance of $0.46 to $0.54, reflecting a slight recovery trajectory. Forward-looking statements highlight a focus on stabilizing revenue streams and managing costs amid market volatility.

Post-Earnings Price Action Review

Super Micro Computer’s stock price has faced sustained downward pressure, with a 23.48% weekly drop and a 32.24% monthly decline. While the earnings report revealed a significant revenue and EPS shortfall, the company’s guidance for the next quarter suggests a cautious approach to navigating market conditions. Analysts remain divided, with some upgrading the stock based on long-term potential despite near-term volatility.

Additional News

1. Argus Upgrade: Argus upgraded Super Micro Computer from "Hold" to "Buy," citing renewed confidence in its strategic initiatives and market positioning.

2. Needham Price Target Cut: Needham & Company reduced its price target from $60 to $51 but maintained a "Buy" rating, emphasizing the company’s AI infrastructure potential.

3. KGI Outperform Rating: KGI Securities upgraded the stock to "Outperform" with a $60 target, highlighting its role in the AI-driven computing sector.