first quarter fiscal year 2027
Filed Nov 3, 2026Supermicro Announces First Quarter of Fiscal Year 2027 Financial Results
Net sales reached $19.9 billion, gross margin expanded to 12.7% from 9.3% in Q1'26, and GAAP net income rose to $1,594 million from $168 million. The company guided Q2 fiscal 2027 net sales to $19.5 billion to $21.5 billion and fiscal 2027 net sales to $72.0 billion to $82.0 billion.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30GAAP | $19.95B | – | – |
| Cost of sales, three months ended September 30GAAP | 17.40B | – | – |
| Gross profit, three months ended September 30GAAP | $2.54B | – | – |
| Gross margin, three months ended September 30GAAP | 12.7% | – | – |
| Non-GAAP gross profit, three months ended September 30non-GAAP | $2.55B | – | – |
| Non-GAAP gross margin, three months ended September 30non-GAAP | 12.8% | – | – |
| Research and development expense, three months ended September 30GAAP | 227.3M | – | – |
| Sales and marketing expense, three months ended September 30GAAP | 132.5M | – | – |
| General and administrative expense, three months ended September 30GAAP | 116.7M | – | – |
| Total operating expenses, three months ended September 30GAAP | 476.6M | – | – |
| Non-GAAP operating expenses, three months ended September 30non-GAAP | $384.4M | – | – |
| Income from operations, three months ended September 30GAAP | 2.06B | – | – |
| Interest income, three months ended September 30GAAP | 54.19M | – | – |
| Interest expense, three months ended September 30GAAP | −82.54M | – | – |
| Income before income tax provision, three months ended September 30GAAP | 2.03B | – | – |
| Income tax provision, three months ended September 30GAAP | −435.5M | – | – |
| GAAP effective tax rate, three months ended September 30GAAP | 21.4% | – | – |
| Non-GAAP effective tax rate, three months ended September 30non-GAAP | 21.4% | – | – |
| Net income, three months ended September 30GAAP | $1.59B | – | – |
| Basic net income per common share, three months ended September 30GAAP | $ 1.92 | – | – |
| Diluted net income per common share, three months ended September 30GAAP | $ 1.75 | – | – |
| Non-GAAP basic net income per common share, three months ended September 30non-GAAP | $ 2.03 | – | – |
| Non-GAAP diluted net income per common share, three months ended September 30non-GAAP | $ 1.81 | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $2.23B | – | – |
| Adjusted EBITDA % of net sales, three months ended September 30non-GAAP | 11.2% | – | – |
| Net cash used in operating activities, three months ended September 30GAAP | −434.0M | – | – |
| Purchases of property, plant, and equipment, three months ended September 30GAAP | −41.59M | – | – |
| Investment in equity securities, three months ended September 30GAAP | −5M | – | – |
| Net cash used in investing activities, three months ended September 30GAAP | −46.59M | – | – |
| Net cash used in financing activities, three months ended September 30GAAP | −135.3M | – | – |
| Net decrease in cash, cash equivalents, and restricted cash, three months ended September 30GAAP | −615.9M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
second quarter of fiscal year 2027 ending December 31, 2026; fiscal year 2027 outlook
- RevenueSecond quarter of fiscal year 2027: $19.5 billion and $21.5 billion; fiscal year 2027: $72.0 billion to $82.0 billion
- Tax rateapproximately 21.2% for GAAP and 21.1% for non-GAAP
- NoteSecond quarter of fiscal year 2027 GAAP net income per diluted share: $1.59 to $1.83
- NoteSecond quarter of fiscal year 2027 non-GAAP net income per diluted share: $1.66 to $1.90
- NoteFully diluted share count of 753 million shares for GAAP
- NoteFully diluted share count of 769 million shares for non-GAAP
- NoteApproximately $89 million in expected stock-based compensation expense, net of related tax effects of $22 million that are excluded from non-GAAP net income per diluted share
Capital returns
- Dividends declared and paid on preferred stock: (63,729) (in thousands)
- Series A Mandatory Convertible Preferred Stock accrued dividends: $ 25,155 (in thousands)
What drove it
- Record revenue of $19.9 billion for the first quarter fiscal 2027.
- DCBBS is driving significant value for customers from gigawatt-scale datacenters down to single-container PODs.
- The company cited expanding software, proactive service, and networking solutions as enhancing profitability and long-term shareholder value.
- The company cited key enterprise partnerships and expanding global production capacity.
Concerns
- Financial information is preliminary and may be subject to change because financial closing procedures for the quarter ended September 30, 2026 are not yet complete.
- Cash flow used in operations was $434 million, reflecting accounts receivable changes of (3,559,839) (in thousands) and inventory changes of (2,477,392) (in thousands).
- GAAP gross margin of 12.7% was below 17.5% in Q4'26.
- The company stated that larger customers and larger sales opportunities may increase customer concentration, increase cost of sales, lower margins, and make sales less predictable.
- The company identified potential declines in average sales prices, adverse economic conditions, and increased tariffs as risks.
What to watch
- Second-quarter fiscal 2027 net sales guidance of $19.5 billion and $21.5 billion.
- Second-quarter fiscal 2027 GAAP net income per diluted share guidance of $1.59 to $1.83 and non-GAAP net income per diluted share guidance of $1.66 to $1.90.
- Whether gross margin develops from the 12.7% GAAP and 12.8% non-GAAP first-quarter levels.
- Working-capital conversion, particularly accounts receivable and inventories.
- Fiscal year 2027 net sales guidance of $72.0 billion to $82.0 billion.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $ 6,897,497 (in thousands); June 30, 2026: $ 7,521,474 (in thousands)
- Accounts receivable, net of allowance for credit losses as of September 30, 2026: 9,685,158 (in thousands); June 30, 2026: 6,125,414 (in thousands)
- Inventories as of September 30, 2026: 15,053,640 (in thousands); June 30, 2026: 12,895,949 (in thousands)
- Total assets as of September 30, 2026: $ 35,727,127 (in thousands); June 30, 2026: $ 29,945,467 (in thousands)
- Lines of credit and term loans, current as of September 30, 2026: 1,962,690 (in thousands); June 30, 2026: 2,039,774 (in thousands)
- Lines of credit and term loans, non-current as of September 30, 2026: 2,014,381 (in thousands); June 30, 2026: 2,016,374 (in thousands)
- Convertible notes as of September 30, 2026: 4,668,946 (in thousands); June 30, 2026: 4,664,139 (in thousands)
- Total liabilities as of September 30, 2026: 19,658,333 (in thousands); June 30, 2026: 15,465,851 (in thousands)
- Total stockholders’ equity as of September 30, 2026: 16,068,794 (in thousands); June 30, 2026: 14,479,616 (in thousands)
- Accounts receivable, net changes in operating assets and liabilities: (3,559,839) (in thousands); prior year: (321,244) (in thousands)
- Inventories changes in operating assets and liabilities: (2,477,392) (in thousands); prior year: (1,087,010) (in thousands)
- Deferred revenue changes in operating assets and liabilities: 3,053,678 (in thousands); prior year: 296,622 (in thousands)
- Cash, cash equivalents, and restricted cash at the end of period: $ 7,015,620 (in thousands); prior year: $ 4,199,255 (in thousands)
Analysis
Supermicro reported first-quarter fiscal 2027 net sales of $19.9 billion, compared with $11.1 billion in Q4'26 and $5.0 billion in Q1'26. GAAP net income was $1,594 million, compared with $1,178 million in Q4'26 and $168 million in Q1'26. GAAP diluted net income per common share was $1.75, compared with $1.62 in Q4'26 and $0.26 in Q1'26. The results were described as preliminary estimated unaudited financial results and remain subject to the completion of management’s and its audit committee’s review and financial closing processes.
Gross margin was 12.7%, above 9.3% in Q1'26 but below 17.5% in Q4'26. Non-GAAP gross margin was 12.8%, compared with 9.5% in Q1'26, after adjusting for stock-based compensation expense of $8 million. Income from operations was 2,064,493 (in thousands), while GAAP total operating expenses were 476,550 (in thousands). Adjusted EBITDA was $2,227,498 (in thousands), or 11.2% of net sales, compared with $334,857 (in thousands), or 6.7% of net sales, in the prior-year quarter.
Working capital consumed cash despite the reported profitability. Net cash used in operating activities was (434,021) (in thousands), compared with (917,523) (in thousands) in the prior-year quarter. Accounts receivable increased by 3,559,839 (in thousands) and inventories increased by 2,477,392 (in thousands) in operating cash flow. Cash and cash equivalents were $ 6,897,497 (in thousands) as of September 30, 2026, while total bank debt and convertible notes were described as $8.6 billion. The company also declared and paid (63,729) (in thousands) of dividends on preferred stock.
For the second quarter of fiscal 2027 ending December 31, 2026, the company expects net sales in the range of $19.5 billion and $21.5 billion, GAAP net income per diluted share of $1.59 to $1.83, and non-GAAP net income per diluted share of $1.66 to $1.90. The outlook assumes tax rates of approximately 21.2% for GAAP and 21.1% for non-GAAP, with fully diluted share counts of 753 million shares and 769 million shares, respectively. For fiscal year 2027, the company expects net sales in the range of $72.0 billion to $82.0 billion.
Management, verbatim
Supermicro’s transformation into a Total AI and IT Datacenter Solution provider continues to accelerate, delivering record revenue of $19.9 billion for the first quarter fiscal 2027.
Charles Liang, Founder, President, and CEO of Supermicro
DCBBS is driving significant value for our customers—from gigawatt-scale datacenters down to single-container PODs—which, including our expanding software, proactive service, and networking solutions, is enhancing profitability and long-term shareholder value.
Charles Liang, Founder, President, and CEO of Supermicro
Not in the filing
stated, not guessed- Prior outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Segment revenue, segment profitability, and segment growth metrics were not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Common-stock dividends were not reported.
- Second-quarter fiscal 2027 gross-margin guidance was not reported.
- Second-quarter fiscal 2027 operating-expense guidance was not reported.
- Quarter-over-quarter non-GAAP gross-margin comparison was not reported.
- Quarter-over-quarter non-GAAP diluted net income per common share comparison was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.