Super Micro Computer 2026 Q1 Earnings Sharp Net Income Drop Amid AI-Driven Growth

Super Micro Computer reported Q1 2026 earnings on Nov 8, 2025, with results falling short of expectations. The company missed EPS estimates by $0.11 and revenue estimates by $1.46 billion. Guidance for Q2 2026 (EPS of $0.46–$0.54) reflects a 37–48% decline from the $0.73 EPS reported in the same period last year.

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 EPS decline reflects ongoing challenges despite long-term profitability.

Price Action

The stock price of Super Micro Computer has edged down 0.21% during the latest trading day, has plummeted 23.48% during the most recent full trading week, and has plummeted 32.24% month-to-date.

CEO Commentary

Charlie W. Wei, CEO of Super Micro Computer, highlighted strong performance driven by AI and HPC demand, noting supply chain challenges and inventory management as key hurdles. He emphasized strategic investments in AI infrastructure, sustainability initiatives, and R&D to solidify market positioning.

Additional News

Super Micro Computer (NASDAQ:SMCI) received a rating upgrade from Argus from "hold" to "buy" on Nov 6, 2025, signaling renewed analyst confidence. This followed a 11.3% stock price decline and a $0.11 EPS miss. Concurrently, KGI Securities upgraded the stock to "outperform" with a $60 price target, while Needham & Co. reduced its price target to $51 but maintained a "buy" rating. Insider activity included CFO David Weigand selling 25,000 shares (a 19.97% stake reduction) and SVP George Kao offloading 40,000 shares (a 64.7% stake reduction), totaling $3.89 million in insider sales over three months. Institutional investors adjusted holdings, with Hazlett Burt & Watson Inc. increasing stakes by 68.6% to 661 shares.

Guidance

Super Micro Computer set Q2 2026 EPS guidance at $0.46–$0.54, below the $0.73 EPS in the year-ago period. Analysts project 1.86 EPS for FY 2026.