Super Micro Computer, Inc. reported a 18% surge in its stock on May 5, 2026, following its mixed earnings results. The jump was fueled by strong guidance and a recovery in gross margins, despite revenue falling short of estimates.
For the third quarter, Super Micro posted adjusted earnings per share of 84 cents, surpassing expectations of 62 cents. However, revenue reached $10.24 billion, below the anticipated $12.33 billion. Year-over-year revenue increased by 123%, indicating significant growth.
Super Micro’s gross margin improved to 9.9%, up from 6.3% in the previous quarter and 9.6% in the same quarter last year. Net income for the third quarter totaled $483 million, up from $401 million in the second quarter and $109 million a year ago.
The company expects fourth-quarter earnings per share to range between 65 cents and 79 cents, with projected revenue between $11 billion and $12.5 billion. This optimistic outlook reflects confidence in their data center business and AI infrastructure development.
Super Micro has expanded its manufacturing facilities in Silicon Valley to meet rising demand for AI solutions. Charles Liang, CEO, stated that several customers are not yet ready for cloud deployment but expects to capture this revenue soon.
Despite the positive earnings outlook, Super Micro’s stock is down 5% year-to-date and 13% over the past twelve months. Analysts at Citi and Mizuho have raised their price targets for SMCI stock to $31 and $30 respectively, both maintaining a “Neutral” rating.
Uncertainties linger around customer readiness for cloud services and the outcome of an independent review regarding export-control issues. Liang noted that these factors could impact future earnings recognition.
