Super Micro Computer, Inc. (SMCI.US) The preliminary performance in Q2 is weak but the revenue in FY 2026 is expected to exceed $40 billion, far beyond expectations.

Artificial intelligence server manufacturer Super Micro Computer, Inc. (SMCI.US) has announced preliminary financial information for the second quarter of the 2025 fiscal year ending in December 2024. Super Micro Computer, Inc. expects net sales for Q2 to be between $5.6 billion and $5.7 billion (a 54% year-on-year increase), which is slightly lower than the company's original forecast of $5.5 billion to $6.1 billion, but analysts had expected $5.77 billion. The company also anticipates adjusted earnings per share for Q2 to be between $0.58 and $0.60, compared to the original forecast of $0.56 to $0.65, with analysts expecting $0.61 per share. For the third quarter, Super Micro Computer, Inc. expects net sales for Q3 to be between $5 billion and $6 billion, while analysts had anticipated $5.92 billion. The company also forecasts adjusted earnings per share for Q3 to be between $0.46 and $0.62, below analysts' expectations of $0.65. For the 2025 fiscal year, Super Micro Computer, Inc. projects annual net sales to be between $23.5 billion and $25 billion, lower than the previous expectation of $26 billion to $30 billion, with analysts expecting $24.11 billion. Despite the slightly weaker performance in the second quarter and the guidance for the third quarter and full fiscal year 2025, which fell short of market expectations, Super Micro Computer, Inc. provided strong guidance for fiscal year 2026. The company expects net sales for fiscal year 2026 to reach $40 billion, significantly above analysts' current expectations of $29.2 billion. Following this news, Super Micro Computer, Inc. saw its stock rise nearly 8% in after-hours trading on Tuesday. In December of last year, Super Micro Computer, Inc. was granted an extension by the NASDAQ stock exchange to delay the deadline for submitting its 10-K annual report and 10-Q quarterly report to February 25th in order to comply with the exchange's listing rules regarding timely reporting to the U.S. Securities and Exchange Commission (SEC). This development comes after a series of events earlier last year. In August of last year, Super Micro Computer, Inc. announced that it would not be able to file its 10-K report on time. Subsequently, the company's auditing firm, Ernst & Young, resigned in October of last year, citing concerns about the company's internal controls. In November, the company appointed BDO as its new auditing firm. Super Micro Computer, Inc. stated that it expects to file its 10-K annual report for the year ending June 30th and its 10-Q quarterly report for the period ending September by February 25th. The company disclosed in a statement on Tuesday that it had received subpoenas from the U.S. Department of Justice and SEC at the end of 2024, "requesting certain documents related to allegations made in a short report released in August 2024," and that it is cooperating with these requests. CEO Charles Liang of Super Micro Computer, Inc. stated that the company is "well positioned in AI infrastructure design based on NVIDIA CorporationBlackwell and others," and praised the company's "excellent product quality, service, software, network, and security of data center building blocks". The current stock price of Super Micro Computer, Inc. has dropped nearly 70% from its high point in March of last year. In a statement released last Wednesday, the company stated that its new product is now "fully production-ready," serving as the core infrastructure needed for large-scale deployment of the Blackwell chip by AI data center developers. With the increasing demand for AI infrastructure and data center solutions, this is a positive sign for Super Micro Computer, Inc. and could have a significant impact on the company's future growth trajectory. However, at the same time, Super Micro Computer, Inc. needs to demonstrate improved financial controls and transparency to reassure stakeholders about its governance efforts.