Supermicro reported Q4 fiscal 2026 earnings Tuesday after the close, adjusted EPS of $1.70 beating the $1.59 consensus, revenue of $11.2 billion at the low end of guidance but above the $11.1 billion estimate, and gross margins of 17.5 percent, nearly double what the company had originally guided just three months ago.
The stock jumped more than 8 percent in after-hours trading.
The number that really moved the stock was Q1 guidance. Supermicro told investors to expect first quarter revenue of $14.5 billion to $15.5 billion, against a Wall Street consensus of $11.68 billion. That is not a beat.
That is a different universe. Adjusted EPS guidance of $1.01 to $1.10 also cleared the $0.76 consensus. CEO Charles Liang said the company added several hundred new enterprise customers in fiscal 2026, generated more than $60 billion in new orders during Q4 alone and enters fiscal 2027 with a record backlog.
The margin improvement, from 9.9 percent in Q3 to 17.5 percent in Q4. is the other eyebrow-raising figure.
Management attributed it to a favorable customer and product mix. The Street's question is whether it holds.
Q1 EPS guidance implies margins contracting back to low double digits, meaning the 17.5 percent may have been a peak quarter. The demand story, however, is now hard to argue with.