Supermicro (NASDAQ: SMCI) Q3 2026 sales hit $10.2B as profit jumps
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Super Micro Computer, Inc. reported very strong growth for Q3 fiscal 2026, but with heavy working-capital strain. Net sales reached $10.2 billion, up from $4.6 billion in Q3 2025, while GAAP gross margin was 9.9%. GAAP net income rose to $483 million, with diluted EPS of $0.72 versus $0.17 a year earlier; non‑GAAP diluted EPS increased to $0.84 from $0.31.
For the nine months ended March 31, 2026, net sales were $27.9 billion and net income was $1.05 billion. However, operating activities used $7.56 billion of cash, largely reflecting higher accounts receivable and inventories, and cash and cash equivalents declined to $1.29 billion as total bank debt and convertible notes reached $8.8 billion.
The company expects Q4 2026 net sales between $11.0 billion and $12.5 billion, GAAP diluted EPS of $0.53–$0.67 and non‑GAAP diluted EPS of $0.65–$0.79, and full‑year fiscal 2026 net sales of $38.9–$40.4 billion. The board is conducting an independent review of certain transactions in connection with export‑control issues, and all figures are described as preliminary unaudited results.
Positive
- Q3 2026 revenue and earnings surged: Net sales rose to $10.2 billion from $4.6 billion in Q3 2025, with GAAP net income increasing to $483 million and non‑GAAP diluted EPS climbing to $0.84 from $0.31.
- Guidance implies continued high scale: The company projects Q4 2026 net sales of $11.0–$12.5 billion and full‑year fiscal 2026 net sales of $38.9–$40.4 billion, reinforcing a much larger revenue base than the prior‑year period.
Negative
- Large negative operating cash flow: For the nine months ended March 31, 2026, operating activities used $7.56 billion of cash versus positive $795.9 million a year earlier, reflecting heavy working‑capital use.
- Higher leverage and reduced cash: As of March 31, 2026, cash and cash equivalents fell to $1.29 billion while total bank debt and convertible notes reached $8.8 billion, increasing balance‑sheet risk.
- Ongoing export‑control review and preliminary figures: The board is conducting an independent review of certain transactions related to export‑control issues, and management emphasizes that these financial results are preliminary and may change.
Insights
Revenue and earnings are surging, but cash flow and leverage have weakened.
Supermicro delivered Q3 2026 net sales of $10.2 billion, more than double Q3 2025, with GAAP net income of $483 million and non‑GAAP diluted EPS of $0.84. Gross margin improved to 9.9%, and non‑GAAP gross margin reached 10.1%, indicating better pricing or mix compared with recent quarters.
The nine‑month cash‑flow picture is much weaker. Operating activities used $7.56 billion versus cash provided of $795.9 million a year earlier, driven by large increases in accounts receivable and inventories. To fund this, the company relied on debt financing, with total bank debt and convertible notes at $8.8 billion and cash and cash equivalents at $1.29 billion as of March 31, 2026.
Management guides Q4 2026 net sales to $11.0–$12.5 billion and full‑year fiscal 2026 to $38.9–$40.4 billion, assuming tax rates around 19.4–20.4%. The release notes an ongoing board‑led independent review of transactions related to export‑control issues and stresses that these results are preliminary unaudited figures; subsequent SEC filings for the period will show the final numbers and any impact from the review.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q3 2026 net sales: $10.24B
Q3 2026 GAAP net income: $483.4M
Q3 2026 diluted EPS: $0.72 per share
+5 more
8 metrics
Q3 2026 net sales
$10.24B
Three months ended March 31, 2026
Q3 2026 GAAP net income
$483.4M
Three months ended March 31, 2026
Q3 2026 diluted EPS
$0.72 per share
GAAP, three months ended March 31, 2026
Nine‑month operating cash flow
-$7.56B
Net cash used in operating activities, nine months ended March 31, 2026
Cash and equivalents
$1.29B
As of March 31, 2026
Bank debt and convertible notes
$8.80B
As of March 31, 2026
Q4 2026 sales guidance
$11.0B–$12.5B
Projected net sales, quarter ending June 30, 2026
Full‑year 2026 sales guidance
$38.9B–$40.4B
Projected net sales, fiscal year 2026
Key Terms
Adjusted EBITDA, stock-based compensation, convertible notes, Receivables Purchase Agreement, +2 more
6 terms
Adjusted EBITDA financial
"Reconciliation of GAAP Net Income to Adjusted EBITDA"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
stock-based compensation financial
"Stock-based compensation expense, before taxes"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
convertible notes financial
"Convertible notes | 4,659,357 | | | 4,645,178"
Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.
Receivables Purchase Agreement financial
"Proceeds related to Receivables Purchase Agreement, net"
A receivables purchase agreement is a contract where a company sells its outstanding invoices or amounts owed by customers to a buyer in exchange for immediate cash, usually at a discount. Investors care because it improves a company’s short‑term cash flow and can change reported assets, liabilities and risk exposure—like selling IOUs to get money now instead of waiting, which affects liquidity and the firm’s financial picture.
export-control issues regulatory
"independent review of certain transactions in connection with export-control issues"
non-GAAP gross margin financial
"Non-GAAP gross margin of 10.1% versus 9.7% in Q3'25."
Non-GAAP gross margin is a measure of a company's profitability that shows how much money it makes from sales after subtracting the direct costs of producing its products or services, but without applying certain accounting adjustments required by standard rules. It helps investors understand the company's core earning ability by excluding items like one-time expenses or accounting changes. This metric provides a clearer picture of ongoing business performance beyond official financial reports.
Earnings Snapshot
Net sales: $10.24B · Guidance included
Q3 fiscal 2026
Net sales
$10.24B
GAAP diluted EPS
$0.72
Non-GAAP diluted EPS
$0.84
GAAP gross margin
9.9%
Guidance
Q4 2026 net sales expected at $11.0–$12.5B; GAAP diluted EPS $0.53–$0.67; non-GAAP diluted EPS $0.65–$0.79; full-year 2026 net sales $38.9–$40.4B.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________________________________________________
FORM 8-K
__________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 5, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including Zip Code)
Registrant’s telephone number, including area code: (408 ) 503-8000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered or to be registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition | ||||
On May 5, 2026, Super Micro Computer, Inc. (the “Company”) issued a press release (the “Press Release”) announcing financial results for the quarter ended March 31, 2026. A copy of the Press Release is attached as Exhibit 99.1 to this report and is incorporated herein by reference.
The information in, and the exhibit furnished pursuant to, Item 2.02 of this report, including Exhibit 99.1, are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are not to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language contained in such filing, unless otherwise expressly stated in such filing.
| Item 9.01 | Financial Statements and Exhibits | ||||
(d) Exhibits
| Exhibit Number | Description | |||||||
| 99.1 | Press Release entitled “Supermicro Announces Third Quarter Fiscal Year 2026 Financial Results” dated May 5, 2026 | |||||||
| 104 | Cover Page Interactive Data File | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SUPER MICRO COMPUTER, INC. | ||||||||||||||||||||||||||
Date: | By: | /s/ Charles Liang | ||||||||||||||||||||||||
| President, Chief Executive Officer and Chairman of the Board (Principal Executive Officer) | ||||||||||||||||||||||||||
Exhibit 99.1
Supermicro Announces Third Quarter Fiscal Year 2026 Financial Results
SAN JOSE, Calif. -- May 5, 2026 -- (BUSINESS WIRE) -- Super Micro Computer, Inc. (NASDAQ: SMCI) (“Supermicro” or the “Company”), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced unaudited financial results for its third quarter of fiscal year 2026 ended March 31, 2026.
Third Quarter Fiscal Year 2026 Highlights
•Net sales of $10.2 billion versus $12.7 billion in Q2'26 and $4.6 billion in Q3'25.
•Gross margin of 9.9% versus 6.3% in Q2'26 and 9.6% in Q3'25.
•Net income of $483 million versus $401 million in Q2'26 and $109 million in Q3'25.
•Diluted net income per common share of $0.72 versus $0.60 in Q2'26 and $0.17 in Q3'25.
•Non-GAAP gross margin of 10.1% versus 9.7% in Q3'25.
•Non-GAAP diluted net income per common share of $0.84 versus $0.31 in Q3'25.
•Cash flow used in operations for Q3'26 of $6.6 billion and capital expenditures and investments of $97 million.
“Supermicro's transformation into a total datacenter infrastructure provider is accelerating," said Charles Liang, Founder, President and CEO of Supermicro. "Our margin recovery and the rapid growth of our DCBBS business demonstrate that our business remains robust. With the addition of our new US manufacturing facilities in Silicon Valley, we are exceptionally well-positioned to meet the massive demand for various AI and enterprise verticals.”
As of March 31, 2026, total cash and cash equivalents was $1.3 billion and total bank debt and convertible notes were $8.8 billion.
Business Outlook
The Company expects net sales in the range of $11.0 billion and $12.5 billion for the fourth quarter of fiscal year 2026 ending June 30, 2026, GAAP net income per diluted share of $0.53 to $0.67 and non-GAAP net income per diluted share of $0.65 to $0.79. The Company’s projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 19.4% and 20.4%, respectively, and a fully diluted share count of 695 million shares for GAAP and fully diluted share count of 712 million shares for non-GAAP. The outlook for the fourth quarter of fiscal year 2026 GAAP net income per diluted share includes approximately $95 million in expected stock-based compensation, net of related tax effects of $30 million that are excluded from non-GAAP net income per diluted share.
For fiscal year 2026, the Company expects net sales in the range of $38.9 billion to $40.4 billion.
Conference Call and Webcast Information
Supermicro will present a live audio webcast of our conference call to review its third quarter of fiscal year 2026 financial results on Tuesday, May 5, 2026, at 5:00 p.m. ET / 2:00 p.m. PT. The webcast will be available at https://ir.supermicro.com.
A replay of the webcast will be available shortly after the call at the same website and will remain accessible for one year.
Forward Looking Statements and Other Disclosures
Statements contained in this press release that are not historical fact may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “may,” "plan,” “seek,” “should,” “will,” “would” “optimistic” or similar expressions and the negatives of those terms. Such forward looking statements may include statements regarding, among other things, guidance for the fourth quarter of fiscal year 2026 and updated full year fiscal 2026 guidance, expectations related to strong customer engagements and that additional customer commitments will be secured in the upcoming quarters of fiscal year 2026, our efforts to strengthen our operational and financial execution, our focus on capturing the next wave of AI and IT infrastructure demand, meeting the Company's long-term targets and capitalizing on the growing market opportunity in the long-term, and our progressing leadership in DCBBS and AI technology. Such forward looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from those anticipated, including: (i) our quarterly operating results may fluctuate, (ii) as we increasingly target larger customers and larger sales opportunities, our customer base may become more concentrated, our cost of sales may increase, our margins may be lower and our sales may become less predictable for a variety of reasons, many of which are not in our control, (iii) the average sales prices for our server solutions could decline if customers do not continue to purchase our latest generation products or additional components, and (iv) adverse economic conditions could affect our business, including, but not limited to, increased tariffs. In addition, as the Company has disclosed, the Board is conducting an independent review of certain transactions in connection with export-control issues. The outcome of that investigation could affect our forecasts, these preliminary results and prior period results. Certain prior period amounts have been reclassified to conform to the current period presentation. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward looking statements are detailed in our filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings, particularly in our Annual Report on Form 10-K for our fiscal year ended June 30, 2025 and any subsequent Quarterly Report on Form 10-Q.
Financial Information Is Preliminary and May Be Subject to Change
The unaudited interim financial information presented in this press release is preliminary. The final financial results reported for this period may also differ from the results reported in this release.
The financial results presented reflect the Company's preliminary estimated unaudited financial results, based upon information available to the Company as of the date of this press release. The Company has provided preliminary estimates of financial results primarily because its financial closing procedures for the quarter ended March 31, 2026 are not yet complete. The data are not a comprehensive statement of the Company's results for such periods, and the actual results may differ materially from these preliminary estimated data. The Company's actual results remain subject to the completion of management’s and its audit committee’s review and other financial closing processes as well as the completion and preparation of its financial data for such periods. The Company's independent registered public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to such preliminary data. During the course of the preparation of the Company's financial statements and related notes and the completion of the review for such periods, additional adjustments to the preliminary estimated financial information presented here may be identified, and its final results
for these periods may vary from these preliminary estimates. This preliminary estimated data should not be considered a substitute for the financial statements to be prepared in accordance with accounting principles generally accepted in the United States and to be filed with the Securities and Exchange Commission once available.
About Super Micro Computer, Inc.
Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G/Edge IT Infrastructure. We are a Total IT Solutions provider with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).
Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.
All other brands, names, and trademarks are the property of their respective owners.
Investor Relations Contact:
Nicole Noutsios
Stratos Advisors
email: ir@supermicro.com
Source: Super Micro Computer, Inc.
SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
| March 31, | June 30, | ||||||||||
| 2026 | 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,290,324 | $ | 5,169,911 | |||||||
| Accounts receivable, net of allowance for credit losses | 8,413,396 | 2,203,942 | |||||||||
| Inventories | 11,103,376 | 4,680,375 | |||||||||
| Prepaid expenses and other current assets | 761,190 | 247,426 | |||||||||
| Total current assets | 21,568,286 | 12,301,654 | |||||||||
| Property, plant, and equipment, net | 607,659 | 504,488 | |||||||||
| Deferred income taxes, net | 632,715 | 607,416 | |||||||||
| Other assets | 643,369 | 604,871 | |||||||||
| Total assets | $ | 23,452,029 | $ | 14,018,429 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 3,686,991 | $ | 1,281,977 | |||||||
| Accrued liabilities | 830,007 | 565,637 | |||||||||
| Income taxes payable | 38,333 | 53,381 | |||||||||
Lines of credit and current portion of term loans | 2,095,069 | 75,060 | |||||||||
| Deferred revenue | 1,472,235 | 368,737 | |||||||||
| Total current liabilities | 8,122,635 | 2,344,792 | |||||||||
| Deferred revenue, non-current | 663,410 | 362,645 | |||||||||
Term loans, non-current | 2,018,675 | 37,415 | |||||||||
Convertible notes | 4,659,357 | 4,645,178 | |||||||||
| Other long-term liabilities | 412,361 | 326,528 | |||||||||
| Total liabilities | 15,876,438 | 7,716,558 | |||||||||
| Stockholders’ equity: | |||||||||||
| Common stock and additional paid-in capital | 3,087,963 | 2,866,449 | |||||||||
| Accumulated other comprehensive income | 692 | 705 | |||||||||
| Retained earnings | 4,486,775 | 3,434,539 | |||||||||
| Total Super Micro Computer, Inc. stockholders’ equity | 7,575,430 | 6,301,693 | |||||||||
| Non-controlling interest | 161 | 178 | |||||||||
| Total stockholders’ equity | 7,575,591 | 6,301,871 | |||||||||
| Total liabilities and stockholders’ equity | $ | 23,452,029 | $ | 14,018,429 | |||||||
SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales | $ | 10,243,014 | $ | 4,599,913 | $ | 27,943,295 | $ | 16,215,131 | |||||||||||||||
| Cost of sales | 9,224,334 | 4,159,695 | 25,658,675 | 14,329,311 | |||||||||||||||||||
| Gross profit | 1,018,680 | 440,218 | 2,284,620 | 1,885,820 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | 215,659 | 162,857 | 569,734 | 453,329 | |||||||||||||||||||
| Sales and marketing | 89,510 | 59,978 | 210,516 | 208,400 | |||||||||||||||||||
| General and administrative | 87,643 | 70,603 | 221,948 | 199,488 | |||||||||||||||||||
| Total operating expenses | 392,812 | 293,438 | 1,002,198 | 861,217 | |||||||||||||||||||
| Income from operations | 625,868 | 146,780 | 1,282,422 | 1,024,603 | |||||||||||||||||||
| Other income (expense), net | 4,147 | (32,967) | 4,243 | (29,558) | |||||||||||||||||||
| Interest income | 45,437 | 14,654 | 147,835 | 31,437 | |||||||||||||||||||
| Interest expense | (64,483) | (13,402) | (114,772) | (37,291) | |||||||||||||||||||
| Income before income tax provision | 610,969 | 115,065 | 1,319,728 | 989,191 | |||||||||||||||||||
| Income tax provision | (126,887) | (5,843) | (266,199) | (137,544) | |||||||||||||||||||
| Share of (loss) income from equity investee, net of taxes | (695) | (445) | (1,293) | 2,053 | |||||||||||||||||||
| Net income | $ | 483,387 | $ | 108,777 | $ | 1,052,236 | $ | 853,700 | |||||||||||||||
Net income per common share (A): | |||||||||||||||||||||||
| Basic | $ | 0.81 | $ | 0.18 | $ | 1.76 | $ | 1.44 | |||||||||||||||
| Diluted | $ | 0.72 | $ | 0.17 | $ | 1.59 | $ | 1.37 | |||||||||||||||
Weighted-average shares used in the calculation of net income per common share (A): | |||||||||||||||||||||||
| Basic | 600,205 | 595,041 | 597,928 | 592,349 | |||||||||||||||||||
| Diluted | 692,189 | 621,809 | 673,598 | 625,272 | |||||||||||||||||||
(A) Reflects a ten-for-one stock split on September 30, 2024.
Stock-based compensation is included in the following cost and expense categories by period (in thousands):
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Cost of sales | $ | 11,522 | $ | 7,060 | $ | 25,400 | $ | 17,713 | ||||||||||||||||||
| Research and development | 83,115 | 54,254 | 200,090 | 141,590 | ||||||||||||||||||||||
| Sales and marketing | 12,276 | 9,923 | 33,700 | 27,245 | ||||||||||||||||||||||
| General and administrative | 19,021 | 13,467 | 46,368 | 44,292 | ||||||||||||||||||||||
Stock-based compensation expense, before taxes | $ | 125,934 | $ | 84,704 | $ | 305,558 | $ | 230,840 | ||||||||||||||||||
SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Nine Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| OPERATING ACTIVITIES: | |||||||||||
| Net income | $ | 1,052,236 | $ | 853,700 | |||||||
| Reconciliation of net income to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization | 38,959 | 29,467 | |||||||||
| Amortization of right-of-use (“ROU”) assets | 26,997 | 10,241 | |||||||||
| Amortization of debt discount and issuance costs | 17,162 | 6,367 | |||||||||
| Inventory valuation adjustment write-down | 239,255 | 159,050 | |||||||||
| Stock-based compensation expense | 305,558 | 230,840 | |||||||||
| Impairment loss | 13,747 | — | |||||||||
| Share of loss (income) from equity investee | 1,293 | (2,053) | |||||||||
| Unrealized foreign currency exchange (gain) loss | (4,428) | 2,742 | |||||||||
| Loss on extinguishment of convertible notes | — | 30,251 | |||||||||
Deferred income taxes, net | (30,920) | (134,401) | |||||||||
| Other non-cash income, net | (8,302) | (790) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | (6,209,831) | 94,782 | |||||||||
| Inventories | (6,669,560) | 298,847 | |||||||||
Prepaid expenses and other assets | (381,738) | (284,356) | |||||||||
Accounts payable | 2,406,930 | (811,690) | |||||||||
Accrued liabilities | 232,916 | 52,714 | |||||||||
| Income taxes payable | (11,576) | 5,365 | |||||||||
| Deferred revenue | 1,404,262 | 249,421 | |||||||||
Other long-term liabilities | 20,193 | 5,414 | |||||||||
| Net cash (used in) provided by operating activities | (7,556,847) | 795,911 | |||||||||
| INVESTING ACTIVITIES: | |||||||||||
| Purchases of property, plant, and equipment | (133,769) | (104,536) | |||||||||
| Investment in equity securities | (42,000) | — | |||||||||
| Net cash used in investing activities | (175,769) | (104,536) | |||||||||
| FINANCING ACTIVITIES: | |||||||||||
| Proceeds from lines of credit and term loans | 4,235,265 | 1,357,991 | |||||||||
| Repayment of lines of credit and term loans | (225,068) | (1,731,366) | |||||||||
| Payment of debt issuance costs | (23,483) | — | |||||||||
| Proceeds from exercise of stock options | 18,347 | 14,452 | |||||||||
| Payment for withholding taxes related to settlement of equity awards | (102,391) | (118,960) | |||||||||
| Debt issuance costs in connection with amended 2029 Convertibles Notes | — | (31,217) | |||||||||
| Proceeds from issuance of 2028 Convertible Notes, net of issuance costs | — | 683,696 | |||||||||
| Proceeds related to Receivables Purchase Agreement, net | 4,191 | — | |||||||||
| Other | (26) | 22 | |||||||||
| Net cash provided by financing activities | 3,906,835 | 174,618 | |||||||||
| Effect of exchange rate fluctuations on cash | (6,554) | 826 | |||||||||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (3,832,335) | 866,819 | |||||||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 5,172,301 | 1,670,273 | |||||||||
| Cash, cash equivalents and restricted cash at the end of the period | $ | 1,339,966 | $ | 2,537,092 | |||||||
SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Supplemental disclosure of cash flow information: | |||||||||||
| Cash paid for interest | $ | 81,293 | $ | 24,046 | |||||||
| Cash paid for taxes, net of refunds | $ | 270,394 | $ | 270,392 | |||||||
| Non-cash investing and financing activities: | |||||||||||
| Unpaid property, plant, and equipment purchases | $ | 16,778 | $ | 18,283 | |||||||
| ROU assets obtained in exchange for operating lease commitments | $ | 94,907 | $ | 128,617 | |||||||
| Transfer of inventory to property, plant, and equipment, net | $ | 7,304 | $ | 4,889 | |||||||
SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
Use of Non-GAAP Financial Measures
To supplement its condensed consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures. The specific non-GAAP measures presented below are: gross profit, gross margin; operating expenses; net income; net income per common share; diluted net income; diluted net income per common share, adjusted earnings before interest, taxes, depreciation, and amortization, (“Adjusted EBITDA”); and effective tax rate. Management believes these non-GAAP measures provide useful information to investors by offering a consistent basis for comparing the Company's performance across periods, excluding items that are not reflective of our core operating results. These non-GAAP measures are not prepared in accordance with GAAP or intended to be a replacement for GAAP financial data; and therefore, should be reviewed together with the GAAP measures and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.
We exclude the following adjustments from our non-GAAP financial measures:
Non-GAAP Adjustments
•Stock-based compensation: Stock-based compensation relates primarily to our equity incentive awards. Stock-based compensation is a non-cash expense that is dependent on market forces that are difficult to predict. We believe that this adjustment for stock-based compensation provides investors with a basis to measure the company's core performance, including compared with the performance of other companies, without the period-to-period variability created by stock-based compensation.
•Adjusted EBITDA adjustments: When calculating Adjusted EBITDA, in addition to the adjustments described above, we exclude the impact of Interest expense, Income tax (provision) benefit, and Depreciation and amortization during the period.
Pursuant to the requirements of SEC Regulation G, please see the tables below for the reconciliations of GAAP to Non-GAAP measures. These should be read together with the preceding financial statements prepared in accordance with GAAP.
SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
Reconciliation of GAAP Net Income to Adjusted EBITDA:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | ||||||||||||||||||||
GAAP Net Income | $ | 483,387 | $ | 108,777 | $ | 1,052,236 | $ | 853,700 | |||||||||||||||
| Interest expense | 64,483 | 13,402 | 114,772 | 37,291 | |||||||||||||||||||
| Income tax provision | 126,887 | 5,843 | 266,199 | 137,544 | |||||||||||||||||||
| Depreciation and amortization | 13,605 | 10,910 | 38,959 | 29,467 | |||||||||||||||||||
| Stock-based compensation | 125,934 | 84,704 | 305,558 | 230,840 | |||||||||||||||||||
| Loss on extinguishment of convertible notes | — | 30,251 | — | 30,251 | |||||||||||||||||||
Adjusted EBITDA | $ | 814,296 | $ | 253,887 | $ | 1,777,724 | $ | 1,319,093 | |||||||||||||||
Adjusted EBITDA % of net sales | 7.9 | % | 5.5 | % | 6.4 | % | 8.1 | % | |||||||||||||||
Reconciliation of GAAP to Non-GAAP Gross Margin:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | ||||||||||||||||||||
| GAAP Gross Profit | $ | 1,018,680 | $ | 440,218 | $ | 2,284,620 | $ | 1,885,820 | |||||||||||||||
| Stock-based compensation | 11,522 | 7,060 | 25,400 | 17,713 | |||||||||||||||||||
| Non-GAAP Gross Profit | $ | 1,030,202 | $ | 447,278 | $ | 2,310,020 | $ | 1,903,533 | |||||||||||||||
| GAAP gross margin (%) | 9.9 | % | 9.6 | % | 8.2 | % | 11.6 | % | |||||||||||||||
| Stock-based compensation (%) | 0.2 | % | 0.1 | % | 0.1 | % | 0.1 | % | |||||||||||||||
| Non-GAAP gross margin (%) | 10.1 | % | 9.7 | % | 8.3 | % | 11.7 | % | |||||||||||||||
SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
Reconciliation of GAAP to Non-GAAP Operating Expenses:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | ||||||||||||||||||||
GAAP Operating Expenses | $ | 392,812 | $ | 293,438 | $ | 1,002,198 | $ | 861,217 | |||||||||||||||
Adjustments to operating expenses | |||||||||||||||||||||||
GAAP R&D operating expenses | 215,659 | 162,857 | 569,734 | 453,329 | |||||||||||||||||||
Stock-based compensation | (83,115) | (54,254) | (200,090) | (141,590) | |||||||||||||||||||
Non-GAAP R&D operating expenses | 132,544 | 108,603 | 369,644 | 311,739 | |||||||||||||||||||
GAAP S&M operating expenses | 89,510 | 59,978 | 210,516 | 208,400 | |||||||||||||||||||
Stock-based compensation | (12,276) | (9,923) | (33,700) | (27,245) | |||||||||||||||||||
Non-GAAP S&M operating expenses | 77,234 | 50,055 | 176,816 | 181,155 | |||||||||||||||||||
GAAP G&A operating expenses | 87,643 | 70,603 | 221,948 | 199,488 | |||||||||||||||||||
| Stock-based compensation | (19,021) | (13,467) | (46,368) | (44,292) | |||||||||||||||||||
Non-GAAP G&A operating expenses | 68,622 | 57,136 | 175,580 | 155,196 | |||||||||||||||||||
Non-GAAP Operating Expenses | $ | 278,400 | $ | 215,794 | $ | 722,040 | $ | 648,090 | |||||||||||||||
SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
Reconciliation of GAAP to Non-GAAP Net Income:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | ||||||||||||||||||||
| GAAP Net Income - basic | $ | 483,387 | $ | 108,777 | $ | 1,052,236 | $ | 853,700 | |||||||||||||||
Adjustments related to stock-based compensation: | |||||||||||||||||||||||
Cost of sales | 11,522 | 7,060 | 25,400 | 17,713 | |||||||||||||||||||
| Operating expenses | 114,412 | 77,644 | 280,158 | 213,127 | |||||||||||||||||||
Total adjustments to GAAP income from operations | 125,934 | 84,704 | 305,558 | 230,840 | |||||||||||||||||||
Other expense | — | 30,251 | — | 30,251 | |||||||||||||||||||
Total adjustments to GAAP Other expense | — | 30,251 | — | 30,251 | |||||||||||||||||||
Total adjustments to GAAP income before income tax provision | 125,934 | 114,955 | 305,558 | 261,091 | |||||||||||||||||||
Income tax effect of non-GAAP adjustments | (28,713) | (29,706) | (70,373) | (64,715) | |||||||||||||||||||
| Non-GAAP net income - basic | $ | 580,608 | $ | 194,026 | $ | 1,287,421 | $ | 1,050,076 | |||||||||||||||
| GAAP net income - basic | $ | 483,387 | $ | 108,777 | $ | 1,052,236 | $ | 853,700 | |||||||||||||||
| Convertible notes interest charge, net of tax | 17,888 | — | 16,472 | 1,777 | |||||||||||||||||||
| GAAP net income - diluted | $ | 501,275 | $ | 108,777 | $ | 1,068,708 | $ | 855,477 | |||||||||||||||
| Non-GAAP net income - basic | $ | 580,608 | $ | 194,026 | $ | 1,287,421 | $ | 1,050,076 | |||||||||||||||
| Convertible notes interest charge, net of tax | 17,888 | — | 16,472 | 1,777 | |||||||||||||||||||
Non-GAAP net income - diluted | $ | 598,496 | $ | 194,026 | $ | 1,303,893 | $ | 1,051,853 | |||||||||||||||
Weighted-average shares used in the calculation of net income per common share: | |||||||||||||||||||||||
Basic - GAAP | 600,205 | 595,041 | 597,928 | 592,349 | |||||||||||||||||||
Basic - Non-GAAP | 600,205 | 595,041 | 597,928 | 592,349 | |||||||||||||||||||
Diluted - GAAP | 692,189 | 621,809 | 673,598 | 625,272 | |||||||||||||||||||
| Non-GAAP adjustment | 16,961 | 14,108 | 14,896 | 11,645 | |||||||||||||||||||
Diluted - Non-GAAP | 709,150 | 635,917 | 688,494 | 636,917 | |||||||||||||||||||
SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
Reconciliation of GAAP to Non-GAAP EPS:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | ||||||||||||||||||||
GAAP Net Income per common share - basic | $ | 0.81 | $ | 0.18 | $ | 1.76 | $ | 1.44 | |||||||||||||||
Adjustments to GAAP: | |||||||||||||||||||||||
| Stock-based compensation | 0.21 | 0.14 | 0.51 | 0.39 | |||||||||||||||||||
Loss on extinguishment of convertible notes - basic | — | 0.05 | — | 0.05 | |||||||||||||||||||
| Income tax | (0.05) | (0.04) | (0.12) | (0.11) | |||||||||||||||||||
Non-GAAP Net Income per common share - basic | $ | 0.97 | $ | 0.33 | $ | 2.15 | $ | 1.77 | |||||||||||||||
| GAAP net income per common share - diluted | $ | 0.72 | $ | 0.17 | $ | 1.59 | $ | 1.37 | |||||||||||||||
| Adjustments to GAAP: | |||||||||||||||||||||||
| Stock-based compensation | 0.16 | 0.14 | 0.40 | 0.33 | |||||||||||||||||||
Loss on extinguishment of convertible notes - diluted | — | 0.05 | — | 0.05 | |||||||||||||||||||
| Income tax | (0.04) | (0.05) | (0.10) | (0.10) | |||||||||||||||||||
Non-GAAP Net Income per common share – diluted | $ | 0.84 | $ | 0.31 | $ | 1.89 | $ | 1.65 | |||||||||||||||
GAAP to Non-GAAP Effective Tax Rate:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | ||||||||||||||||||||
GAAP effective tax rate | 20.8 | % | 5.1 | % | 20.2 | % | 13.9 | % | |||||||||||||||
Total adjustments to GAAP provision to income tax | 0.3 | % | 10.4 | % | 0.5 | % | 2.3 | % | |||||||||||||||
Non-GAAP effective tax rate | 21.1 | % | 15.5 | % | 20.7 | % | 16.2 | % | |||||||||||||||
FAQ
How did Supermicro (SMCI) perform in Q3 fiscal 2026?
Supermicro delivered strong Q3 fiscal 2026 results, with net sales of $10.2 billion and GAAP net income of $483 million. Diluted EPS was $0.72, up from $0.17 in Q3 2025, and non-GAAP diluted EPS rose to $0.84 from $0.31, reflecting improved profitability.
What margins did Supermicro (SMCI) report for Q3 2026?
In Q3 2026, Supermicro reported a GAAP gross margin of 9.9% and non-GAAP gross margin of 10.1%. These compared with 9.6% and 9.7%, respectively, in Q3 2025, showing modest year-over-year expansion alongside a much larger revenue base and higher absolute gross profit.
What guidance did Supermicro (SMCI) give for Q4 and full-year fiscal 2026?
For Q4 fiscal 2026, Supermicro expects net sales between $11.0 billion and $12.5 billion, GAAP diluted EPS of $0.53–$0.67, and non-GAAP diluted EPS of $0.65–$0.79. For the full fiscal year 2026, the company projects net sales in the range of $38.9 billion to $40.4 billion.
What is Supermicro’s (SMCI) cash and debt position as of March 31, 2026?
As of March 31, 2026, Supermicro held $1.29 billion in cash and cash equivalents. Total bank debt and convertible notes were $8.8 billion, with total liabilities of $15.88 billion and total stockholders’ equity of $7.58 billion, indicating a more leveraged balance sheet than June 2025.
How did Supermicro’s operating cash flow trend in fiscal 2026 year-to-date?
For the nine months ended March 31, 2026, Supermicro reported net cash used in operating activities of $7.56 billion, compared with net cash provided of $795.9 million in the prior-year period. The decline was driven mainly by large increases in accounts receivable and inventories supporting rapid revenue growth.
Are Supermicro’s Q3 2026 financial results final and audited?
The Q3 fiscal 2026 figures are preliminary, unaudited results based on information available when released. Management notes that final results may differ after completing closing procedures, audit committee review, and external auditor work, and the company highlights an ongoing board-led review of certain export-control-related transactions.