Super Micro Computer Inc (NASDAQ:SMCI) shares are falling Wednesday after the company reported worse-than-expected financial results for the fourth quarter of fiscal 2025 and issued weak earnings guidance.
What Happened: Super Micro reported fiscal fourth-quarter revenue of $5.76 billion, missing analyst estimates of $5.88 billion, according to Benzinga Pro. The company reported fourth-quarter adjusted earnings of 41 cents per share, missing estimates of 44 cents per share.
Gross margin came in at 9.5% in the quarter, down from 10.2% in the comparable quarter last year. Super Micro generated $864 million of cash flow from operations during the quarter. The company ended the period with $5.2 billion of cash and cash equivalents and $4.8 billion of total bank debt and convertible notes.
“With support from our expanding global operations that help mitigate tariffs and regional costs, combined with a growing enterprise customer base, AI product innovations, and robust DCBBS-powered total solutions, we’re on track to grow more large-scale datacenter customers from four in FY25 to six to eight in FY26,” said Charles Liang, founder, president and CEO of Super Micro.
Super Micro guided for first-quarter revenue of $6 billion to $7 billion versus estimates of $6.6 billion. The company said it expects first-quarter adjusted earnings of 40 cents to 52 cents per share versus estimates of 60 cents per share.
Super Micro also lowered its fiscal 2026 revenue guidance from approximately $40 billion to at least $33 billion versus estimates of $29.8 billion. The lowered full-year outlook and soft earnings guidance for the first quarter combined with the top and bottom line miss in the fourth quarter appears to be weighing on shares.
Following the print, Needham analyst N. Quinn Bolton maintained Super Micro with a Buy rating and raised the price target from $39 to $60.
SMCI Price Action: Super Micro shares were down 21.4% at $45.06 at the time of publication Wednesday, according to Benzinga Pro.
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