Supermicro tops Q1 estimates, offers strong Q2 outlook

Data center infrastructure company Supermicro ( SMCI ) reported its fiscal first quarter earnings after the bell on Tuesday, beating Wall Street's expectations on the top and bottom lines and providing a better-than-anticipated outlook for Q2.

The company said it anticipates Q2 sales of between $19.5 billion and $21.5 billion. Analysts were calling for $16.35 billion.

Supermicro stock rose more than 5% immediately following the news.

"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," CEO Charles Liang said in a statement.

"[Data Center Building Block Solutions] is driving significant value for our customers — from gigawatt-scale data centers down to single-container PODs — which, including our expanding software, proactive service, and networking solutions, is enhancing profitability and long-term shareholder value. Through key enterprise partnerships and expanding global production capacity, we are making AI infrastructure faster to deploy, with superior uptime and more cost-effective for our customer base."

For the quarter, the company reported earnings per share (EPS) of $1.81 and revenue of $19.95 billion, well ahead of Wall Street's projections and the company's preliminary results.

Gross margins topped 12.8%, also topping Supermicro's preliminary numbers of between 12% and 12.5%.

Supermicro stock fell a staggering 27% over the last month after Gartner issued a report saying that 80% of neocloud companies would cease operations by 2030 due to a lack of a return on invested capital.

Neoclouds CoreWeave ( CRWV ) and Nebius ( NBIS ) plunged on the news and are down 40% and 37%, respectively, in the last month. CoreWeave is a Supermicro customer.

Supermicro stock has had a rough year, plummeting 38% over the last 12 months on questions about its profitability.

Email Daniel Howley at dhowley@yahoofinance.com . Follow him on X at @DanielHowley , or reach out on Signal or Telegram.