Supermicro Q1 Sales Hit $19.9B at 12.7% Margin, Guides FY27 to $82B

Supermicro reported record net sales of $19.9 billion for the quarter ended Sept. 30, 2026, and guided fiscal 2027 net sales of $72.0 billion to $82.0 billion, in results released after the close on Nov. 3.

The figure compares with $11.1 billion in the June quarter and $5.0 billion a year earlier, according to the company's release, which was furnished to the SEC as an 8-K exhibit. It also clears the top of the $18.5 billion to $19.5 billion range Supermicro gave in a preliminary update on Oct. 20, and sits well above the $14.5 billion to $15.5 billion it had guided for the quarter. Net income was $1,594 million, or $1.75 per diluted share. Non-GAAP earnings were $1.81 per share, against a consensus of $1.23, Investing.com reported.

Margin fell from the June quarter

Gross margin was 12.7%, just above the 12.0% to 12.5% range flagged on Oct. 20, but down from 17.5% in the June quarter and up from 9.3% a year ago. Non-GAAP gross margin was 12.8%. Chief Financial Officer Mark Long attributed the drop mainly to a larger share of lower-margin, large AI deployments, according to a summary of the earnings call published by Yahoo Finance. The company expects a full-year gross margin of 11.8% to 12.2%, with 12% to 12.5% for the December quarter, the same summary said.

At this scale, each point of margin is worth roughly $200 million of gross profit per quarter, by Voltgrid's arithmetic on the $19.9 billion in sales. The gross profit was $2.54 billion.

Cash went the other way

Operating cash flow was negative $434 million, the release shows. Accounts receivable rose by $3.56 billion and inventories by $2.48 billion in the quarter, while deferred revenue, which includes customer deposits, rose by $3.05 billion. Cash and equivalents ended at $6.9 billion, down from $7.5 billion at June 30, against $8.6 billion of bank debt and convertible notes.

Investing.com reported that Raymond James raised its price target to $65 from $48, saying customer prepayments funded most of the working-capital build. Management also pointed to faster turnover. Long said the cash conversion cycle shortened to 97 days from 149, and that days of inventory fell 45 days to 74, according to the Yahoo Finance call summary. The same summary said one large data center customer made up 44% of revenue, compared with 28% for fiscal 2026, and that Long expects concentration to stay high while big build-outs continue.

One caution on the headline number: management said about $2.3 billion of the quarter's revenue came from deployments originally scheduled for earlier periods, and that the outlook does not assume a repeat, per Investing.com and the Yahoo Finance summary.

Outlook and what is not confirmed yet

For the December quarter, Supermicro guided net sales of $19.5 billion to $21.5 billion and non-GAAP earnings of $1.66 to $1.90 per share. The midpoint of $20.5 billion is about 3% above the quarter just reported. The full-year midpoint of $77 billion implies the second half averages about $18.3 billion a quarter, by Voltgrid's arithmetic, below the current run rate. The company has not said why, and the release does not break down the guidance by product or customer.

The release carries no power, rack-count or cooling figures. Chief Executive Charles Liang described the Data Center Building Block Solutions line as spanning gigawatt-scale data centers down to single-container pods, without giving shipment volumes. The SambaNova SN50 inference racks Supermicro announced on Nov. 3, as Voltgrid reported, likewise came without rack power or a ship date.

The Nov. 3 release does not mention export controls. On Aug. 20 the company said an independent board review found no evidence that current senior management knew of an alleged diversion scheme, and that it had adopted compliance recommendations in full, while still cooperating with government authorities. Raymond James nonetheless listed an unresolved export-control investigation among the key debates, Investing.com reported. The financial results are also preliminary and unaudited, Supermicro said, and may change as its closing procedures finish.