Supermicro Jumps 19% After Fiscal Q4 Margins Nearly Double

Super Micro Computer shares jumped 19% on Wednesday, closing at $37.61, after the AI-server maker reported fiscal fourth-quarter results late Tuesday that showed its gross margin nearly doubling from a year earlier alongside a record order backlog. The stock had closed the prior session at $31.60. Volume ran heavy. The company held its earnings call after Tuesday’s close, and the shares repriced when trading opened the next morning.

Margins do the heavy lifting

For the quarter ended June 30, Supermicro reported net sales of $11.1 billion, up from $5.8 billion a year earlier and $10.2 billion in the prior quarter. That is a 92% jump from the year-ago period. Non-GAAP gross margin came in at 17.6%, up from 9.6% in the same quarter last year. On a GAAP basis, margin was 17.5% versus 9.5% a year ago.

That recovery is what moved the stock. The company’s margins had been squeezed into single digits, and the rebound turned a quarter of roughly in-line revenue into a clear profit beat. Non-GAAP earnings reached $1.70 a share, up from $0.41 a year earlier. On a GAAP basis the company earned $1.62, against $0.31 in the same quarter last year.

A record $60 billion backlog

Supermicro said it booked more than $60 billion in new orders during the quarter and entered fiscal 2027 with record backlog. For the full year ended June 30, net sales were $39.1 billion, up 78% from $22.0 billion the year before.

The demand traces to AI infrastructure. Supermicro assembles the rack-scale server systems that data-center operators buy to run large computing workloads, a category that has grown quickly as companies expand their AI capacity. The company guided fiscal 2027 net sales to a range of $65 billion to $72 billion. For the current quarter, it projected net sales of $14.5 billion to $15.5 billion and non-GAAP earnings of $1.01 to $1.10 a share.

Still 25% below the 90-day high

Even after Wednesday’s jump, the stock sits about 25% below its 90-day high of $50.17. It has climbed 36% over the past 30 days and trades roughly 71% above its 90-day low of $22.05. A wide band for three months.

Wednesday’s volume was more than three times the 20-day average, the kind of turnover that accompanies a repricing rather than routine trading. The shares had been volatile through the summer as investors weighed the company’s thin margins against its rapid revenue growth. This quarter answered the margin question, at least for now, and the stock moved accordingly.

The margin is the number to watch

The margin figure is what to track. Supermicro’s guidance implies it expects the improvement to hold. The next quarterly report will show whether the mix of customers and products that lifted profitability this quarter carries into the new fiscal year. The $65 billion to $72 billion revenue range sets the bar the company will be measured against, and the backlog above $60 billion gives a sense of the orders already in hand.

This is a general-market summary for information only — not investment advice, and not a recommendation regarding any security.