Super Micro Computer soars as AI demand drives massive revenue beat

Investing.com -- Super Micro Computer Inc (NASDAQ: SMCI) shares jumped 7.3% in after-hours trading Tuesday after the AI server provider reported fiscal second-quarter results that significantly exceeded analyst expectations and raised its full-year outlook.

The company posted adjusted earnings per share of $0.69 for the quarter ended December 31, 2025, beating the analyst consensus of $0.49 by 40.8%. Revenue surged to $12.7 billion, well above the $10.42 billion analysts expected and representing a 123.4% increase YoY from $5.7 billion in the same quarter last year.

"With our leading AI server and storage technology foundation, strong customer engagements, and expanding global manufacturing footprint, we are scaling rapidly to support large AI and enterprise deployments while continuing to strengthen our operational and financial execution," said Charles Liang, Founder, President and CEO of Supermicro.

For the fiscal third quarter, Supermicro forecasts revenue of at least $12.3 billion, substantially higher than the $10.25 billion consensus, and adjusted EPS of at least $0.60, compared to analysts' $0.52 estimate. The company also raised its full-year revenue outlook to at least $40 billion, exceeding the consensus of $36.27 billion.

Despite the revenue growth, gross margin contracted to 6.4% on a non-GAAP basis, down from 11.9% in the year-ago quarter. The company's cash position stood at $4.1 billion as of December 31, with total bank debt and convertible notes at $4.9 billion.

Supermicro's results reflect the ongoing surge in demand for AI infrastructure as companies worldwide continue to invest heavily in artificial intelligence capabilities.

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