Super Micro Computer Inc. shares surged more than 18% in after-hours trading after reporting a mixed fiscal third quarter. The server maker missed revenue estimates but topped earnings expectations and issued strong guidance for the current quarter.
For the quarter ended March 31, Supermicro reported adjusted earnings per share of 84 cents, up from 31 cents a year earlier, on revenue of $10.2 billion-up 122.7% year-over-year but below the $12.33 billion analysts expected. Revenue more than doubled from $4.6 billion a year ago but fell short of the $12.7 billion reported in the previous quarter.
Net income climbed to $483 million, up from $109 million in the year-ago quarter. Gross margin expanded to 9.9%, up from 9.6% a year earlier and a solid improvement from 6.3% in the previous quarter.
CEO Charles Liang said the company's transformation into a total datacenter infrastructure provider is accelerating, citing margin recovery and rapid growth of its DCBBS business. The company markets preconfigured rack-scale systems for hyperscale AI deployments and is racing to expand U.S. production capacity.
The results come as Supermicro continues an ongoing board-led independent review of transactions tied to export-control issues.
For the fiscal fourth quarter ending June 30, Supermicro expects net sales of $11 billion to $12.5 billion, with adjusted earnings per share of 65 cents to 79 cents. The company lifted its full-year fiscal 2026 outlook to net sales of $38.9 billion to $40.4 billion, well above analysts' expectations.