Super Micro Computer (NASDAQ:SMCI) shares jumped 10.1% in premarket trading after the AI server specialist reported fiscal 2026 fourth-quarter results that delivered a significant earnings beat alongside a stronger-than-expected outlook for the coming year.
Non-GAAP diluted earnings per share reached $1.70, comfortably exceeding consensus expectations ranging from $0.62 to $0.96. Quarterly revenue climbed to $11.12 billion, nearly doubling from a year earlier, although the figure came in approximately $610 million below Wall Street forecasts.
Gross margin rebounds sharply
One of the strongest elements of the quarterly report was Supermicro’s improvement in profitability.
Non-GAAP gross margin reached 17.6% in the fourth quarter, substantially above the company’s previous guidance of between 8.2% and 8.4%. It also represented a significant recovery from the 10.1% margin recorded during the third quarter.
The sharp improvement helped ease concerns over profitability as Supermicro continues expanding production to address rapidly growing demand for servers and other infrastructure supporting artificial intelligence workloads.
Orders exceed $60 billion as backlog reaches record
Supermicro also reported more than $60 billion of new orders during the quarter, pushing its backlog to a record level and providing greater visibility over future revenue.
Management issued fiscal 2027 revenue guidance of between $65 billion and $72 billion, substantially ahead of the LSEG analyst consensus of approximately $52.5 billion.
The company also expects first-quarter fiscal 2027 revenue of between $14.5 billion and $15.5 billion. The range exceeded even the highest individual analyst forecast, highlighting management’s confidence in continued demand for AI infrastructure.
AI infrastructure demand supports outlook
Strong results elsewhere in the AI infrastructure sector provided an additional boost to sentiment. CoreWeave reported solid quarterly figures and raised its full-year outlook on the same evening, reinforcing expectations that spending on AI data centres remains strong and continues to accelerate.
Competitive trends have provided similar signals. Recent developments at Dell Technologies and Hewlett Packard Enterprise have pointed to robust demand for AI servers, lending further support to Supermicro’s record order intake.
The wider equity market also offered a favourable backdrop, with the NASDAQ Composite ending the session modestly higher and the S&P 500 advancing, supporting sentiment towards technology and growth stocks.
Supermicro rally signals improving investor confidence
The combination of stronger-than-expected earnings, a substantial recovery in gross margin, record orders and an outlook well above Wall Street forecasts prompted investors to reassess Supermicro’s near-term prospects.
Shares reached $34.78 in premarket trading following the report. Despite the rally, the stock remained below its 52-week high of $58.78, although comfortably above its 52-week low of $19.48.
The market reaction suggests investors are increasingly viewing the latest quarter as a potential turning point for Supermicro, with improving profitability and a substantial AI-driven backlog providing stronger foundations for its fiscal 2027 growth outlook.
Super Micro Computer stock price
