Super Micro Misses Revenue and EPS Targets, Margins Decline to 9.5%

Missed Earnings & Stock Dive

On August 5, 2025, Supermicro announced its fiscal Q4 which ended June 30, 2025, with non-GAAP EPS of 0.41 on revenue of 5.76 billion, missing analyst estimates (~0.44 EPS, ~5.89-5.98 b). The revenue increased by ~78-80% compared to the previous year, but the margins decreased to ~9.5-9.6% as compared to 10.2% in the previous year.

Shares tumbled ~1517 percent premarket and after-hours on August 6 as investors worried not only about the misses but also about softer-than-expected subsequent guidance.

Directions Updates & Perspective

Supermicro cut its full-year fiscal 2026 revenue guidance, previously at a target of $40billion to a minimum of 33billion.

In Q1 FY26 (ending September 30, 2025), guidance is non‑GAAP EPS of 0.40 to 0.52, and revenue of 6.0 to 7.0 billion.

The company noted the long-term growth opportunities with AI infrastructure: AI represented more than 70 percent of Q4 revenue and the number of large-scale data center customers is expected to increase, with four to six-eight customers in FY26.

Analyst Commentary and Wider Challenges

Analysts are wary. Wedbush confirmed a Neutral rating and $30 target prior to earnings; post-report tone is reserved due to the guidance shortfall.

According to analysts at J.P. Morgan and others, there is the growing competition with Dell and HPE, pressure on margins, and doubts that Supermicro will be able to achieve even the reduced goal of $33 billion in fiscal 2026.

Wider industry headwinds are AI chip delays (e.g. Nvidia), potential new U.S. tariffs and poor demand and inventory build-ups in the data center market.

What to Watch

Q1 FY26 results and the holding of revenue and margins against low guidance.

Availability of AI server chip, in particular Nvidia, and supply chain/tariff headwinds management of Supermicro.

Competitive forces: will Supermicro be able to fend off share against Dell, HPE and others in an AI hardware market that is getting saturated?

Longer-term execution on building a broader enterprise customer base with new solutions like DCBBS and liquid‑cooling technology.