Data center specialist Super Micro Computer, better known as Supermicro, badly missed expectations for its fiscal fourth quarter and with its guidance. Supermicro stock plunged on Wednesday.
The San Jose, Calif.-based company late Tuesday said it earned an adjusted 41 cents a share on sales of $5.76 billion in the quarter ended June 30. Analysts polled by FactSet had expected Supermicro earnings of 45 cents a share on sales of $5.98 billion in the fiscal Q4. On a year-over-year basis, Supermicro earnings fell 24% while sales increased 8%.
For the current quarter, Supermicro guided to adjusted earnings of 46 cents a share on sales of $6.5 billion. That's based on the midpoint of its outlook. Wall Street was modeling earnings of 59 cents a share on sales of $6.63 billion in the fiscal first quarter ending Sept. 30.
For the current fiscal year ending next June, Supermicro expects to generate sales of at least $33 billion. In the just-finished fiscal 2025, it posted sales of $22 billion, up 47% from the prior year. Analysts had been looking for fiscal 2026 sales of $30.1 billion.
"We made solid progress in fiscal 2025 by growing our AI solution leadership in neoclouds, CSPs (cloud service providers), enterprises, and sovereign entities, which fueled our 47% annual growth," Chief Executive Charles Liang said in a news release.
Supermicro Stock Tumbles
He added, "I'm especially excited about our new Datacenter Building Block Solutions (DCBBS), which offer exceptional value to customers seeking faster data center deployment and time-to-online advantages."
Further, Supermicro is on track to increase its large-scale data center customers from four in fiscal 2025 to six to eight in fiscal 2026, Liang said.
On the stock market today, Supermicro stock tumbled 18.3% to close at 46.79.
Supermicro stock is on two IBD lists: IBD 50 and Tech Leaders.
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