Super Micro Computer (SMCI) investor relations material

Executive summary

• Q3 FY2026 revenue reached $10.24 billion, up 123% year-over-year but down 19% sequentially, driven by strong AI and data center demand and high-volume shipments of NVIDIA and AMD platforms.

• Net income for the quarter was $483.4 million, up from $108.8 million year-over-year, with diluted EPS at $0.72 GAAP and $0.84 non-GAAP.

• Gross margin improved to 10.1% non-GAAP (up from 6.4% in Q2), driven by product/customer mix and lower tariffs and expedite fees.

• Strong order backlog at record highs, with AI GPU-related platforms contributing over 80% of revenue.

• Ongoing independent investigation into export control violations; company not a defendant and cooperating fully with authorities.

Financial highlights

• Q3 non-GAAP gross margin: 10.1%; non-GAAP operating margin: 7.3%; adjusted EBITDA: $814 million (7.9% of net sales).

• Q3 GAAP diluted EPS: $0.72 (guidance: at least $0.52); non-GAAP diluted EPS: $0.84 (guidance: at least $0.60).

• Q3 GAAP operating expenses: $393 million (up 34% YoY, up 21% QoQ); non-GAAP: $278 million (up 29% YoY, up 16% QoQ).

• Cash flow used in operations: $6.6 billion for the quarter; closing inventory: $11.1 billion; cash and equivalents: $1.3 billion.

• Net debt at quarter end: $7.5 billion, up from $787 million in prior quarter; total bank debt and convertible notes at $8.8 billion.

Outlook and guidance

• Q4 FY2026 net sales expected: $11–$12.5 billion; GAAP EPS: $0.53–$0.67; non-GAAP EPS: $0.65–$0.79.

• Full FY2026 net sales guidance: $38.9–$40.4 billion.

• Q4 gross margin expected: 8.2%–8.4%; GAAP operating expenses: ~$433 million.

• CapEx for Q4 expected: $30–$50 million; full year CapEx projected at $155–$175 million.

• Guidance assumes a tax rate of ~19.4% (GAAP) and ~20.4% (non-GAAP), with diluted share counts of 695 million (GAAP) and 712 million (non-GAAP).