- Super Micro reported fiscal fourth-quarter revenue of about $11.1 billion and non-GAAP gross margin of roughly 17.6%, according to coverage of the company’s results. [1] - The company guided fiscal first-quarter revenue to $14.5 billion-$15.5 billion, above the $11.8 billion consensus midpoint cited by MarketWatch. [2] - Needham remains bullish with a $46 price target, while JPMorgan’s recent upgrade to Neutral and $45 target reflects continued caution about margin durability.
[3] Super Micro Computer shares climbed about 9% in premarket trading on Wednesday after the AI-server manufacturer posted a sharp improvement in profitability and forecast fiscal first-quarter revenue well above Wall Street expectations. [2]
The company reported roughly $11.1 billion in fiscal fourth-quarter revenue and non-GAAP gross margin of about 17.6%, compared with 9.6% a year earlier, according to market coverage of the results. [1]
Demand is strong; margins remain the debate #
Super Micro’s July preliminary update had already pointed to the reason for the market’s reaction: fourth-quarter revenue was expected near the low end of its $11.0 billion-$12.5 billion range, but gross margin was projected at 15%-17%, well above the 8.2%-8.4% guidance issued previously. The company attributed the improvement to customer and product mix and said fourth-quarter new orders exceeded $60 billion. [4]
The first-quarter outlook now calls for $14.5 billion-$15.5 billion in revenue, compared with a consensus midpoint of $11.8 billion, according to MarketWatch. That forecast suggests continued demand for Nvidia-based AI systems and other data-center infrastructure, while the margin gain gives investors a more favorable starting point for fiscal 2027. [2]
Analysts are still divided over how much of the margin improvement can persist. Needham analyst Quinn Bolton raised his target to $46 from $40 and kept a Buy rating after the preliminary update. JPMorgan separately upgraded Super Micro to Neutral from Sell and raised its target to $45 from $35, citing better revenue prospects while maintaining concerns about competitive pricing and future margin pressure. [3]
Companies mentioned #
Further sources #
[1] Market coverage reported Super Micro’s fiscal fourth-quarter revenue at approxi… ↗
[2] MarketWatch reported that Super Micro shares were up about 9% in premarket trad… ↗
[3] Needham raised its price target to $46 from $40 while maintaining Buy; JPMorgan… ↗ [4] Super Micro’s July 21 preliminary business update said fourth-quarter revenue w… ↗
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