Super Micro Computer 2025 Q4 Earnings Misses Expectations as Net Income Dives 34.3%
Generated by AI AgentAinvest Earnings Report Digest
Wednesday, Aug 6, 2025 7:16 am ET2min read
SMCI--
Aime Summary
Aime SummarySuper Micro Computer (SMCI) reported its fiscal 2025 Q4 earnings on August 5, 2025, with revenue rising 7.5% year-over-year to $5.76 billion. However, net income declined sharply to $195.15 million, a 34.3% drop compared to 2024 Q4. The company also guided for Q1 2026 revenue of $6.0 billion to $7.0 billion, reflecting cautious optimism for the upcoming period.
Revenue
Super Micro Computer's total revenue in Q4 2025 reached $5.76 billion, representing a 7.5% increase from $5.35 billion in the same period last year. This growth was driven by the company’s expanding presence in AI solutions and enterprise datacenter deployments. The company attributed its robust performance to strong demand for its AI solutions, including Neoclouds, Cloud Service Providers (CSPs), Enterprises, and Sovereign entities, which collectively contributed to the 47% year-over-year growth in AI solution leadership.
Earnings/Net Income
For Q4 2025, Super Micro ComputerSMCI-- reported a net income of $195.15 million, a 34.3% decline from $297.24 million in Q4 2024. Earnings per share (EPS) dropped 35.3% year-over-year to $0.33. Despite the decline, the company maintained profitability for 20 consecutive years in this fiscal quarter, showcasing resilience in its business model. The drop in net income was attributed to higher operating expenses and the impact of stock-based compensation.
Price Action
Shares of Super Micro Computer (SMCI) edged down 2.64% on the latest trading day and 2.34% during the most recent full trading week. However, the stock surged 17.92% month-to-date, reflecting mixed investor sentiment following the earnings report.
Post-Earnings Price Action Review
A strategy of buying Super Micro Computer shares after its revenue beat forecasts in the latest report period and holding for 30 days delivered a 990.77% return over the past three years, significantly outperforming the 51.69% benchmark return. This outperformance resulted in an excess return of 939.08% and a compound annual growth rate (CAGR) of 124.40%. Despite a maximum drawdown of 0.00%, the strategy had a high volatility of 98.11% and a Sharpe ratio of 1.27, indicating strong risk-adjusted returns.
Guidance
Looking ahead, Super Micro Computer expects Q1 2026 net sales to range between $6.0 billion and $7.0 billion. The company projects GAAP net income per diluted share of $0.30 to $0.42 and non-GAAP net income per diluted share of $0.40 to $0.52. These projections assume a tax rate of approximately 13.0% for GAAP and 15.5% for non-GAAP, with a fully diluted share count of 631 million for GAAP and 644 million for non-GAAP. For fiscal year 2026, the company anticipates net sales of at least $33.0 billion.
Additional News
On August 5, 2025, Super Micro Computer announced its fourth-quarter and full fiscal year 2025 financial results. The company highlighted its continued growth in AI solutions, with CEO Charles Liang expressing optimism about the company’s Datacenter Building Block Solutions (DCBBS) and their role in attracting new large-scale datacenter customers. Super Micro Computer also plans to leverage its expanding global operations to mitigate tariffs and costs, further supporting its business growth. The company is set to host a conference call and webcast on August 5, 2025, at 5:00 p.m. ET to discuss the results in more detail.
Revenue
Super Micro Computer's total revenue in Q4 2025 reached $5.76 billion, representing a 7.5% increase from $5.35 billion in the same period last year. This growth was driven by the company’s expanding presence in AI solutions and enterprise datacenter deployments. The company attributed its robust performance to strong demand for its AI solutions, including Neoclouds, Cloud Service Providers (CSPs), Enterprises, and Sovereign entities, which collectively contributed to the 47% year-over-year growth in AI solution leadership.
Earnings/Net Income
For Q4 2025, Super Micro ComputerSMCI-- reported a net income of $195.15 million, a 34.3% decline from $297.24 million in Q4 2024. Earnings per share (EPS) dropped 35.3% year-over-year to $0.33. Despite the decline, the company maintained profitability for 20 consecutive years in this fiscal quarter, showcasing resilience in its business model. The drop in net income was attributed to higher operating expenses and the impact of stock-based compensation.
Price Action
Shares of Super Micro Computer (SMCI) edged down 2.64% on the latest trading day and 2.34% during the most recent full trading week. However, the stock surged 17.92% month-to-date, reflecting mixed investor sentiment following the earnings report.
Post-Earnings Price Action Review
A strategy of buying Super Micro Computer shares after its revenue beat forecasts in the latest report period and holding for 30 days delivered a 990.77% return over the past three years, significantly outperforming the 51.69% benchmark return. This outperformance resulted in an excess return of 939.08% and a compound annual growth rate (CAGR) of 124.40%. Despite a maximum drawdown of 0.00%, the strategy had a high volatility of 98.11% and a Sharpe ratio of 1.27, indicating strong risk-adjusted returns.
Guidance
Looking ahead, Super Micro Computer expects Q1 2026 net sales to range between $6.0 billion and $7.0 billion. The company projects GAAP net income per diluted share of $0.30 to $0.42 and non-GAAP net income per diluted share of $0.40 to $0.52. These projections assume a tax rate of approximately 13.0% for GAAP and 15.5% for non-GAAP, with a fully diluted share count of 631 million for GAAP and 644 million for non-GAAP. For fiscal year 2026, the company anticipates net sales of at least $33.0 billion.
Additional News
On August 5, 2025, Super Micro Computer announced its fourth-quarter and full fiscal year 2025 financial results. The company highlighted its continued growth in AI solutions, with CEO Charles Liang expressing optimism about the company’s Datacenter Building Block Solutions (DCBBS) and their role in attracting new large-scale datacenter customers. Super Micro Computer also plans to leverage its expanding global operations to mitigate tariffs and costs, further supporting its business growth. The company is set to host a conference call and webcast on August 5, 2025, at 5:00 p.m. ET to discuss the results in more detail.
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