Supermicro Announces Third Quarter Fiscal Year 2026 Financial Results
SMCI
Published on 05/05/2026 at 04:09 pm EDT
Super Micro Computer, Inc. (NASDAQ: SMCI) (“Supermicro” or the “Company”), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced unaudited financial results for its third quarter of fiscal year 2026 ended March 31, 2026.
Third Quarter Fiscal Year 2026 Highlights
“Supermicro's transformation into a total datacenter infrastructure provider is accelerating,” said Charles Liang, Founder, President and CEO of Supermicro. “Our margin recovery and the rapid growth of our DCBBS business demonstrate that our business remains robust. With the addition of our new US manufacturing facilities in Silicon Valley, we are exceptionally well-positioned to meet the massive demand for various AI and enterprise verticals.”
As of March 31, 2026, total cash and cash equivalents was $1.3 billion and total bank debt and convertible notes were $8.8 billion.
Business Outlook
The Company expects net sales in the range of $11.0 billion and $12.5 billion for the fourth quarter of fiscal year 2026 ending June 30, 2026, GAAP net income per diluted share of $0.53 to $0.67 and non-GAAP net income per diluted share of $0.65 to $0.79. The Company’s projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 19.4% and 20.4%, respectively, and a fully diluted share count of 695 million shares for GAAP and fully diluted share count of 712 million shares for non-GAAP. The outlook for the fourth quarter of fiscal year 2026 GAAP net income per diluted share includes approximately $95 million in expected stock-based compensation, net of related tax effects of $30 million that are excluded from non-GAAP net income per diluted share.
For fiscal year 2026, the Company expects net sales in the range of $38.9 billion to $40.4 billion.
Conference Call and Webcast Information
Supermicro will present a live audio webcast of our conference call to review its third quarter of fiscal year 2026 financial results on Tuesday, May 5, 2026, at 5:00 p.m. ET / 2:00 p.m. PT. The webcast will be available at https://ir.supermicro.com.
A replay of the webcast will be available shortly after the call at the same website and will remain accessible for one year.
Forward Looking Statements and Other Disclosures
Statements contained in this press release that are not historical fact may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “may,” "plan,” “seek,” “should,” “will,” “would,” “optimistic” or similar expressions and the negatives of those terms. Such forward looking statements may include statements regarding, among other things, guidance for the fourth quarter of fiscal year 2026 and updated full year fiscal 2026 guidance, expectations related to strong customer engagements and that additional customer commitments will be secured in the upcoming quarters of fiscal year 2026, our efforts to strengthen our operational and financial execution, our focus on capturing the next wave of AI and IT infrastructure demand, meeting the Company's long-term targets and capitalizing on the growing market opportunity in the long-term, and our progressing leadership in DCBBS and AI technology. Such forward looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from those anticipated, including: (i) our quarterly operating results may fluctuate, (ii) as we increasingly target larger customers and larger sales opportunities, our customer base may become more concentrated, our cost of sales may increase, our margins may be lower and our sales may become less predictable for a variety of reasons, many of which are not in our control, (iii) the average sales prices for our server solutions could decline if customers do not continue to purchase our latest generation products or additional components, and (iv) adverse economic conditions could affect our business, including, but not limited to, increased tariffs. In addition, as the Company has disclosed, the Board is conducting an independent review of certain transactions in connection with export-control issues. The outcome of that investigation could affect our forecasts, these preliminary results and prior period results. Certain prior period amounts have been reclassified to conform to the current period presentation. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward looking statements are detailed in our filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings, particularly in our Annual Report on Form 10-K for our fiscal year ended June 30, 2025 and any subsequent Quarterly Report on Form 10-Q.
Financial Information Is Preliminary and May Be Subject to Change
The unaudited interim financial information presented in this press release is preliminary. The final financial results reported for this period may also differ from the results reported in this release.
The financial results presented reflect the Company's preliminary estimated unaudited financial results, based upon information available to the Company as of the date of this press release. The Company has provided preliminary estimates of financial results primarily because its financial closing procedures for the quarter ended March 31, 2026 are not yet complete. The data are not a comprehensive statement of the Company's results for such periods, and the actual results may differ materially from these preliminary estimated data. The Company's actual results remain subject to the completion of management’s and its audit committee’s review and other financial closing processes as well as the completion and preparation of its financial data for such periods. The Company's independent registered public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to such preliminary data. During the course of the preparation of the Company's financial statements and related notes and the completion of the review for such periods, additional adjustments to the preliminary estimated financial information presented here may be identified, and its final results for these periods may vary from these preliminary estimates. This preliminary estimated data should not be considered a substitute for the financial statements to be prepared in accordance with accounting principles generally accepted in the United States and to be filed with the Securities and Exchange Commission once available.
About Super Micro Computer, Inc.
Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. We are a Total IT Solutions provider with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).
Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.
All other brands, names, and trademarks are the property of their respective owners.
SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
March 31,
June 30,
2026
2025
ASSETS
Current assets:
Cash and cash equivalents
$
1,290,324
$
5,169,911
Accounts receivable, net of allowance for credit losses
8,413,396
2,203,942
Inventories
11,103,376
4,680,375
Prepaid expenses and other current assets
761,190
247,426
Total current assets
21,568,286
12,301,654
Property, plant, and equipment, net
607,659
504,488
Deferred income taxes, net
632,715
607,416
Other assets
643,369
604,871
Total assets
$
23,452,029
$
14,018,429
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
3,686,991
$
1,281,977
Accrued liabilities
830,007
565,637
Income taxes payable
38,333
53,381
Lines of credit and current portion of term loans
2,095,069
75,060
Deferred revenue
1,472,235
368,737
Total current liabilities
8,122,635
2,344,792
Deferred revenue, non-current
663,410
362,645
Term loans, non-current
2,018,675
37,415
Convertible notes
4,659,357
4,645,178
Other long-term liabilities
412,361
326,528
Total liabilities
15,876,438
7,716,558
Stockholders’ equity:
Common stock and additional paid-in capital
3,087,963
2,866,449
Accumulated other comprehensive income
692
705
Retained earnings
4,486,775
3,434,539
Total Super Micro Computer, Inc. stockholders’ equity
7,575,430
6,301,693
Non-controlling interest
161
178
Total stockholders’ equity
7,575,591
6,301,871
Total liabilities and stockholders’ equity
$
23,452,029
$
14,018,429
SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended March 31,
Nine Months Ended March 31,
2026
2025
2026
2025
Net sales
$
10,243,014
$
4,599,913
$
27,943,295
$
16,215,131
Cost of sales
9,224,334
4,159,695
25,658,675
14,329,311
Gross profit
1,018,680
440,218
2,284,620
1,885,820
Operating expenses:
Research and development
215,659
162,857
569,734
453,329
Sales and marketing
89,510
59,978
210,516
208,400
General and administrative
87,643
70,603
221,948
199,488
Total operating expenses
392,812
293,438
1,002,198
861,217
Income from operations
625,868
146,780
1,282,422
1,024,603
Other income (expense), net
4,147
(32,967
)
4,243
(29,558
)
Interest income
45,437
14,654
147,835
31,437
Interest expense
(64,483
)
(13,402
)
(114,772
)
(37,291
)
Income before income tax provision
610,969
115,065
1,319,728
989,191
Income tax provision
(126,887
)
(5,843
)
(266,199
)
(137,544
)
Share of (loss) income from equity investee, net of taxes
(695
)
(445
)
(1,293
)
2,053
Net income
$
483,387
$
108,777
$
1,052,236
$
853,700
Net income per common share (A):
Basic
$
0.81
$
0.18
$
1.76
$
1.44
Diluted
$
0.72
$
0.17
$
1.59
$
1.37
Weighted-average shares used in the calculation of net income per common share (A):
Basic
600,205
595,041
597,928
592,349
Diluted
692,189
621,809
673,598
625,272
(A) Reflects a ten-for-one stock split on September 30, 2024.
Stock-based compensation is included in the following cost and expense categories by period (in thousands):
Three Months Ended March 31,
Nine Months Ended March 31,
2026
2025
2026
2025
Cost of sales
$
11,522
$
7,060
$
25,400
$
17,713
Research and development
83,115
54,254
200,090
141,590
Sales and marketing
12,276
9,923
33,700
27,245
General and administrative
19,021
13,467
46,368
44,292
Stock-based compensation expense, before taxes
$
125,934
$
84,704
$
305,558
$
230,840
SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended March 31,
2026
2025
OPERATING ACTIVITIES:
Net income
$
1,052,236
$
853,700
Reconciliation of net income to net cash (used in) provided by operating activities:
Depreciation and amortization
38,959
29,467
Amortization of right-of-use (“ROU”) assets
26,997
10,241
Amortization of debt discount and issuance costs
17,162
6,367
Inventory valuation adjustment write-down
239,255
159,050
Stock-based compensation expense
305,558
230,840
Impairment loss
13,747
—
Share of loss (income) from equity investee
1,293
(2,053
)
Unrealized foreign currency exchange (gain) loss
(4,428
)
2,742
Loss on extinguishment of convertible notes
—
30,251
Deferred income taxes, net
(30,920
)
(134,401
)
Other non-cash income, net
(8,302
)
(790
)
Changes in operating assets and liabilities:
Accounts receivable, net
(6,209,831
)
94,782
Inventories
(6,669,560
)
298,847
Prepaid expenses and other assets
(381,738
)
(284,356
)
Accounts payable
2,406,930
(811,690
)
Accrued liabilities
232,916
52,714
Income taxes payable
(11,576
)
5,365
Deferred revenue
1,404,262
249,421
Other long-term liabilities
20,193
5,414
Net cash (used in) provided by operating activities
(7,556,847
)
795,911
INVESTING ACTIVITIES:
Purchases of property, plant, and equipment
(133,769
)
(104,536
)
Investment in equity securities
(42,000
)
—
Net cash used in investing activities
(175,769
)
(104,536
)
FINANCING ACTIVITIES:
Proceeds from lines of credit and term loans
4,235,265
1,357,991
Repayment of lines of credit and term loans
(225,068
)
(1,731,366
)
Payment of debt issuance costs
(23,483
)
—
Proceeds from exercise of stock options
18,347
14,452
Payment for withholding taxes related to settlement of equity awards
(102,391
)
(118,960
)
Debt issuance costs in connection with amended 2029 Convertibles Notes
—
(31,217
)
Proceeds from issuance of 2028 Convertible Notes, net of issuance costs
—
683,696
Proceeds related to Receivables Purchase Agreement, net
4,191
—
Other
(26
)
22
Net cash provided by financing activities
3,906,835
174,618
Effect of exchange rate fluctuations on cash
(6,554
)
826
Net (decrease) increase in cash, cash equivalents and restricted cash
(3,832,335
)
866,819
Cash, cash equivalents and restricted cash at the beginning of the period
5,172,301
1,670,273
Cash, cash equivalents and restricted cash at the end of the period
$
1,339,966
$
2,537,092
Supplemental disclosure of cash flow information:
Cash paid for interest
$
81,293
$
24,046
Cash paid for taxes, net of refunds
$
270,394
$
270,392
Non-cash investing and financing activities:
Unpaid property, plant, and equipment purchases
$
16,778
$
18,283
ROU assets obtained in exchange for operating lease commitments
$
94,907
$
128,617
Transfer of inventory to property, plant, and equipment, net
$
7,304
$
4,889
SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
Use of Non-GAAP Financial Measures
To supplement its condensed consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures. The specific non-GAAP measures presented below are: gross profit, gross margin; operating expenses; net income; net income per common share; diluted net income; diluted net income per common share, adjusted earnings before interest, taxes, depreciation, and amortization, (“Adjusted EBITDA”); and effective tax rate. Management believes these non-GAAP measures provide useful information to investors by offering a consistent basis for comparing the Company's performance across periods, excluding items that are not reflective of our core operating results. These non-GAAP measures are not prepared in accordance with GAAP or intended to be a replacement for GAAP financial data; and therefore, should be reviewed together with the GAAP measures and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.
We exclude the following adjustments from our non-GAAP financial measures:
Non-GAAP Adjustments
Pursuant to the requirements of SEC Regulation G, please see the tables below for the reconciliations of GAAP to Non-GAAP measures. These should be read together with the preceding financial statements prepared in accordance with GAAP.
Reconciliation of GAAP Net Income to Adjusted EBITDA:
Three Months Ended
Nine Months Ended
March 31, 2026
March 31, 2025
March 31, 2026
March 31, 2025
GAAP Net Income
$
483,387
$
108,777
$
1,052,236
$
853,700
Interest expense
64,483
13,402
114,772
37,291
Income tax provision
126,887
5,843
266,199
137,544
Depreciation and amortization
13,605
10,910
38,959
29,467
Stock-based compensation
125,934
84,704
305,558
230,840
Loss on extinguishment of convertible notes
—
30,251
—
30,251
Adjusted EBITDA
$
814,296
$
253,887
$
1,777,724
$
1,319,093
Adjusted EBITDA % of net sales
7.9
%
5.5
%
6.4
%
8.1
%
Reconciliation of GAAP to Non-GAAP Gross Margin:
Three Months Ended
Nine Months Ended
March 31, 2026
March 31, 2025
March 31, 2026
March 31, 2025
GAAP Gross Profit
$
1,018,680
$
440,218
$
2,284,620
$
1,885,820
Stock-based compensation
11,522
7,060
25,400
17,713
Non-GAAP Gross Profit
$
1,030,202
$
447,278
$
2,310,020
$
1,903,533
GAAP gross margin (%)
9.9
%
9.6
%
8.2
%
11.6
%
Stock-based compensation (%)
0.2
%
0.1
%
0.1
%
0.1
%
Non-GAAP gross margin (%)
10.1
%
9.7
%
8.3
%
11.7
%
Reconciliation of GAAP to Non-GAAP Operating Expenses:
Three Months Ended
Nine Months Ended
March 31, 2026
March 31, 2025
March 31, 2026
March 31, 2025
GAAP Operating Expenses
$
392,812
$
293,438
$
1,002,198
$
861,217
Adjustments to operating expenses
GAAP R&D operating expenses
215,659
162,857
569,734
453,329
Stock-based compensation
(83,115
)
(54,254
)
(200,090
)
(141,590
)
Non-GAAP R&D operating expenses
132,544
108,603
369,644
311,739
GAAP S&M operating expenses
89,510
59,978
210,516
208,400
Stock-based compensation
(12,276
)
(9,923
)
(33,700
)
(27,245
)
Non-GAAP S&M operating expenses
77,234
50,055
176,816
181,155
GAAP G&A operating expenses
87,643
70,603
221,948
199,488
Stock-based compensation
(19,021
)
(13,467
)
(46,368
)
(44,292
)
Non-GAAP G&A operating expenses
68,622
57,136
175,580
155,196
Non-GAAP Operating Expenses
$
278,400
$
215,794
$
722,040
$
648,090
Reconciliation of GAAP to Non-GAAP Net Income:
Three Months Ended
Nine Months Ended
March 31, 2026
March 31, 2025
March 31, 2026
March 31, 2025
GAAP Net Income - basic
$
483,387
$
108,777
$
1,052,236
$
853,700
Adjustments related to stock-based compensation:
Cost of sales
11,522
7,060
25,400
17,713
Operating expenses
114,412
77,644
280,158
213,127
Total adjustments to GAAP income from operations
125,934
84,704
305,558
230,840
Other expense
—
30,251
—
30,251
Total adjustments to GAAP Other expense
—
30,251
—
30,251
Total adjustments to GAAP income before income tax provision
125,934
114,955
305,558
261,091
Income tax effect of non-GAAP adjustments
(28,713
)
(29,706
)
(70,373
)
(64,715
)
Non-GAAP net income - basic
$
580,608
$
194,026
$
1,287,421
$
1,050,076
GAAP net income - basic
$
483,387
$
108,777
$
1,052,236
$
853,700
Convertible notes interest charge, net of tax
17,888
—
16,472
1,777
GAAP net income - diluted
$
501,275
$
108,777
$
1,068,708
$
855,477
Non-GAAP net income - basic
$
580,608
$
194,026
$
1,287,421
$
1,050,076
Convertible notes interest charge, net of tax
17,888
—
16,472
1,777
Non-GAAP net income - diluted
$
598,496
$
194,026
$
1,303,893
$
1,051,853
Weighted-average shares used in the calculation of net income per common share:
Basic - GAAP
600,205
595,041
597,928
592,349
Basic - Non-GAAP
600,205
595,041
597,928
592,349
Diluted - GAAP
692,189
621,809
673,598
625,272
Non-GAAP adjustment
16,961
14,108
14,896
11,645
Diluted - Non-GAAP
709,150
635,917
688,494
636,917
Reconciliation of GAAP to Non-GAAP EPS:
Three Months Ended
Nine Months Ended
March 31, 2026
March 31, 2025
March 31, 2026
March 31, 2025
GAAP Net Income per common share - basic
$
0.81
$
0.18
$
1.76
$
1.44
Adjustments to GAAP:
Stock-based compensation
0.21
0.14
0.51
0.39
Loss on extinguishment of convertible notes - basic
—
0.05
—
0.05
Income tax
(0.05
)
(0.04
)
(0.12
)
(0.11
)
Non-GAAP Net Income per common share - basic
$
0.97
$
0.33
$
2.15
$
1.77
GAAP net income per common share - diluted
$
0.72
$
0.17
$
1.59
$
1.37
Adjustments to GAAP:
Stock-based compensation
0.16
0.14
0.40
0.33
Loss on extinguishment of convertible notes - diluted
—
0.05
—
0.05
Income tax
(0.04
)
(0.05
)
(0.10
)
(0.10
)
Non-GAAP Net Income per common share – diluted
$
0.84
$
0.31
$
1.89
$
1.65
GAAP to Non-GAAP Effective Tax Rate:
Three Months Ended
Nine Months Ended
March 31, 2026
March 31, 2025
March 31, 2026
March 31, 2025
GAAP effective tax rate
20.8
%
5.1
%
20.2
%
13.9
%
Total adjustments to GAAP provision to income tax
0.3
%
10.4
%
0.5
%
2.3
%
Non-GAAP effective tax rate
21.1
%
15.5
%
20.7
%
16.2
%
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