Super Micro Computer (NASDAQ:SMCI) shares are trading higher Wednesday after the company reported better-than-expected second-quarter financial results on Tuesday after the market closed.
Super Micro Beats Analyst Estimates In Q2
Super Micro reported adjusted earnings per share of 69 cents, beating the consensus estimate of 49 cents. In addition, the company reported revenue of $12.68 billion, beating the consensus estimate of $10.21 billion.
Net income rose to $401 million, up from $168 million in the first quarter of fiscal 2026 and $321 million in the second quarter of fiscal 2025.
Gross margin was 6.3% for the quarter, down from 9.3% in the first quarter and 11.8% in the year-ago period. On a non-GAAP basis, gross margin was 6.4%.
Operating cash flow used in the quarter totaled $24 million and capital expenditures and investments were $46 million.
As of Dec. 31, the company reported $4.1 billion in cash and cash equivalents and $4.9 billion in total bank debt and convertible notes.
Super Micro said it expects fiscal third-quarter adjusted earnings per share of 60 cents, versus the consensus estimate of 53 cents. Furthermore, the company sees revenue of $12.30 billion, versus the consensus estimate of $10.14 billion.
For the full fiscal year, the company anticipates revenue of $40.00 billion, versus the consensus estimate of $36.09 billion.
Analyst Consensus And Recent Actions
The stock carries an average Buy rating among analysts. Following the company’s quarterly results, multiple analysts adjusted price targets:
- Needham analyst N. Quinn Bolton maintained a Buy rating on Super Micro and lowered the price target from $51 to $40.
- Rosenblatt analyst Kevin Cassidy maintained a Buy rating on Super Micro and lowered the price target from $55 to $50.
Short-Term Strength Carries Shares Higher
The stock is currently trading 5.4% above its 20-day simple moving average (SMA) and 2% above its 50-day SMA, indicating short-term strength. However, it is trading 18.7% below its 100-day SMA and 23.1% below its 200-day SMA, suggesting longer-term challenges. Shares have increased 1.75% over the past 12 months and are currently positioned closer to their 52-week lows than highs.
The RSI is at 44.17, which is considered neutral territory, while the MACD is above its signal line, indicating bullish momentum. This combination suggests that while the stock is not overbought, there may be underlying strength as it navigates through current market conditions.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Super Micro, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: 78.51 — Indicates a strong valuation relative to peers.
- Growth Rank: 92.74 — Suggests robust growth potential.
- Quality Rank: 98.38 — Reflects high-quality metrics.
- Momentum Rank: 9.22 — Indicates weak momentum in the current market.
The Verdict: Super Micro’s Benzinga Edge signal reveals a strong growth and quality profile, but the weak momentum score suggests caution for short-term traders. Investors should consider the overall strength in valuation and growth while being mindful of the current momentum challenges
Super Micro Shares Surge
SMCI Price Action: At the time of writing, Super Micro shares are trading 8.36% higher at $32.15, according to data from Benzinga Pro.
Image via Shutterstock
