SMCI US S&P 500Russell 1000 Earnings call · transcribed from the recording
Supermicro (SMCI) · Q3 2026 results and valuation
Share price: $30.43 · 2026-11-11
Supermicro provides information technology solutions, including server and storage systems, networking devices, and data center infrastructure for enterprise, cloud, and edge computing. The company serves cloud service providers, telecommunications companies, and retail customers globally. It operates from headquarters in Silicon Valley with additional facilities in Taiwan, Malaysia, and the Netherlands. Source: 10-K annual report (2026-08-31)
Results Q3 2026 vs Q2 2026 · previous quarter · fiscal Q1 2027 · published 3 Nov 2026 and 11 Aug 2026
Net income up 35.3% on the previous quarter, guidance raised. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+35.3%
Net income vs Q2 2026
Guidance raised
Net income 1.59B vs 1.18B
Revenue +79.4%
Against the same quarter last year (Q3 2025) it is +847.3%, so it is not just seasonal.
2 · How management spoke
Typical
Less upbeat than 54% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Key theme
GAAP operating expenses were $477 million, up 67% year-over-year, and 5% sequentially.
Valuation
Is Supermicro undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2026-06-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (3-year revenue growth), the model's fair value is $87.04 a share — the stock trades 65% below it. Today's price assumes −9.8% growth a year.
Current price
$30.43
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-9.8% for 10 yrs
Fair value / share
$87.04
Buy below
$65.28
Price vs fair value
Undervalued 65%
Price vs buy-below price
Undervalued 53%
Read between the lines
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Guidance ↑
For the full fiscal year, Supermicro is raising its revenue outlook to $72 billion to $82 billion, from $65 billion to $72 billion.
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Guidance
Compared with 59 percent in q4 based on its current backlog Supermicro expects ai related solutions to represent approximately 70 to 80 percent of revenue for fiscal 2027.
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Guidance
Key one revenue reached $19.9 billion between the high end of Supermicro's pre-announcement and well ahead of its original outlook...
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Deeper engagement with all of our stakeholders, working capital management, building on the improvement in our cash conversion cycle this quarter, and a capital structure optimized to support high quality...”
“I'm excited to join Supermicro at this pivotal time and look forward to helping Charles and the team continue to deliver an expanding portfolio of innovative solutions to a growing...”
“As we identify high-quality growth opportunities, we will optimize our capital structure to support them, and we will do that in ways that fortify the balance sheet without taking on...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 19.95B | 11.12B | +79.4% | 5.02B | +297.5% |
| Gross profit | 2.54B | 1.94B | +30.8% | 467.4M | +443.7% |
| Operating income | 2.06B | 1.49B | +38.7% | 182.3M | +1032.7% |
| Net income | 1.59B | 1.18B | +35.3% | 168.3M | +847.3% |
| EPS | 1.75 | 1.67 | +4.8% | 0.26 | +573.1% |
| P/E today 6.1 | 8.6 | 9.0 | −0.4 | 37.7 | −29.1 |
Topics
Most discussed now
- New Deep engineering advantage, a real lead in liquid cooling and rack scale integration, and a key position in the largest...
- A diverse product line built on Supermicro's system building blocks and the growing revenue contribution from its higher margin DCBPS...
- Most importantly, Supermicro's data center building block solution, DCBBS, are central to this growth, driven deep customer trust and…
- I've spent much my career in technology infrastructure finance, including as chief financial officer of a public company in this...
Faded since Q2 2026
- Fading The world is being transformed by AI, and Super Micro is transforming as well from a USA-based server manufacturer into...
- Fading The good news is that now, Supermicro's customers can easily leverage its unique DCBBS total solution advantages and upcoming new...
- Fading DCBBS will be Supermicro's long-term much better profit margin product line.
- Fading Supermicro sees a very big room to grow, including kind of switch, high-bandwidth switch and whole networking design management tool.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
The company appointed Mr. Long with an annual base salary of $725,000, a $500,000 sign-on bonus, and an initial award of 120,000 restricted stock units.
- Director or officer change · SEC 8-K
Super Micro Computer, Inc. appointed Shesha Krishnapura as an independent director of the Board of Directors effective October 9, 2026.
- Results of operations · SEC 8-K
Super Micro Computer, Inc. issued unaudited financial results for the quarter and full fiscal year ended June 30, 2026, as disclosed in the press release dated August 11, 2026.
- Other events · SEC 8-K
Super Micro Computer, Inc. declared an initial cash dividend of $14.7778 per share of its 7.00% Series A Mandatory Convertible Preferred Stock, payable on September 1, 2026.
- Results of operations · SEC 8-K
Supermicro issued a preliminary business update for the fourth quarter of fiscal year 2026 on July 21, 2026.
- Material agreement; Change to shareholder rights; Articles or bylaws amended · SEC 8-K
The company entered into an underwriting agreement with J.P. Morgan and Goldman Sachs and issued 7.00% Series A Mandatory Convertible Preferred Stock effective June 15, 2026.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-24.
Cash & runway
Cash & equivalents
$7.52B
2026-06-30
Short-term investments
$23.1M
Long-term investments
$148.0M
total liquidity $7.69B
Implied runway
—
profitable in the last financial year: negative operating cash flow is not burn
Dilution
weighted-average basic shares, per quarter. Change: +0.9% YoY, +0.4% QoQ.
| Quarter | Shares |
|---|---|
| Q3 2024 | 589.6M |
| Q4 2024 | 592.5M |
| Q1 2025 | 595.0M |
| Q3 2025 | 595.6M |
| Q4 2025 | 598.0M |
| Q1 2026 | 600.2M |
Shares outstanding: 657.0M (2026-07-31)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 91 filings; 50 filings parsed.
Sold by insiders
600.0K shares
$24.4M · 8 transactions
Bought by insiders
0 shares
0 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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By early next quarter
more of those software features and service products will be online
Source quote
“By early next quarter, more of those software features and service products will be online.”
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fiscal 2027
revenue target
Source quote
“Looking to fiscal 2027, our momentum gives us strong confidence to target our revenue in the range of $65 billion to $72 billion as we are in the process of a historic infrastructure buildout.”
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fiscal 2027
growth year
Source quote
“I am very confident that fiscal 2027 will be our strong and fast growth year again.”
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over the coming quarters
fulfillment of backlog
Source quote
“Our fiscal year '26 ending backlog was at record levels with over $60 billion in new orders received during Q4 fiscal year '26, which we expect to fulfill over the coming quarters.”
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subsequent quarters
revenue recognition
Source quote
“Revenue was near the low end of our guidance range of $11 billion to $12.5 billion due to delays in customer readiness, and we anticipate this revenue to be recognized in subsequent quarters.”