Super Micro Computer, Inc. saw its stock soar 18% in after-hours trading on May 5, 2026, following a report of mixed earnings results that nonetheless revealed strong guidance and a recovery in gross margins. The company’s revenue for the third quarter came in at $10.24 billion, falling short of expectations but still reflecting a remarkable year-over-year increase of 123%.
The financial results painted a complex picture: while adjusted earnings per share reached 84 cents, surpassing the anticipated 62 cents, revenue did not meet analyst forecasts of $12.33 billion. Super Micro’s gross margin for Q3 improved to 9.9%, up from 6.3%% in Q2 and 9.6%% in the same quarter last year. This upward trend in profitability has been a key factor driving investor confidence.
Key financial highlights:
- Q3 revenue: $10.24 billion
- Adjusted earnings per share: 84 cents
- Year-over-year revenue increase: 123%
- Gross margin for Q3: 9.9%
- Net income for Q3: $483 million
The CEO, Charles Liang, emphasized that Super Micro is positioning itself as a leader in AI infrastructure—an area seeing explosive growth. He mentioned that several customers are not yet equipped with the necessary power and networking capabilities for their cloud deployments, indicating untapped revenue potential in upcoming quarters.
Future outlook:
- The company anticipates Q4 earnings per share between 65 cents and 79 cents.
- Projected revenue for Q4 is expected to be between $11 billion and $12.5 billion.
- Citi and Mizuho have both raised their price targets for SMCI stock to $31 and $30 respectively.
Despite this positive momentum, uncertainties linger—customer readiness has delayed revenue recognition during this quarter, and an independent review regarding export-control issues remains ongoing without a clear timeline for resolution.
The addition of new manufacturing facilities in Silicon Valley underscores Super Micro’s commitment to meeting rising demand across its data center business, particularly as enterprises increasingly pivot towards AI solutions.