SMCI) Gains on Second Quarter Results

The stock is up on second quarter results, currently trading at
$33.87,up 4.20, gaining 14.17% .

Super Micro Computer, Inc. (NASDAQ: SMCI) today announced unaudited
financial results for its second quarter of fiscal year 2026 ended
December 31, 2025.

Second Quarter Fiscal Year 2026 Highlights

Net sales of $12.7 billion versus $5.0 billion in Q1’26 and $5.7
billion in Q2’25

Gross margin of 6.3% versus 9.3% in Q1’26 and 11.8% in Q2’25

Net income of $401 million versus $168 million in Q1’26 and $321
million in Q2’25

Diluted net income per common share of $0.60 versus $0.26 in Q1’26
and $0.51 in Q2’25

Non-GAAP gross margin of 6.4% versus 11.9% in Q2’25

Non-GAAP diluted net income per common share of $0.69 versus $0.59
in Q2’25

Cash flow used in operations for Q2’26 of $24 million and capital
expenditures and investments of $46 million

“With our leading AI server and storage technology foundation,
strong customer engagements, and expanding global manufacturing
footprint, we are scaling rapidly to support large AI and enterprise
deployments while continuing to strengthen our operational and
financial execution,” said Charles Liang, Founder, President and CEO
of Supermicro. “Our DCBBS, Data Center Building Block Solutions,
enable customers to scale faster, greener, and at lower cost,
Supermicro is well positioned to capture the next wave of AI and IT
infrastructure demand.”

As of December 31, 2025, total cash and cash equivalents was $4.1
billion and total bank debt and convertible notes were $4.9 billion.

Business Outlook

The Company expects net sales of at least $12.3 billion for the
third quarter of fiscal year 2026 ending March 31, 2026, GAAP net
income per diluted share of at least $0.52 and non-GAAP net income
per diluted share of at least $0.60. The Company’s projections
for GAAP and non-GAAP net income per diluted share assume a tax rate
of approximately 19.6% and 20.2%, respectively, and a fully diluted
share count of 684 million shares for GAAP and fully diluted share
count of 699 million shares for non-GAAP. The outlook for the third
quarter of fiscal year 2026 GAAP net income per diluted share
includes approximately $62 million in expected stock-based
compensation, net of related tax effects of $19 million that are
excluded from non-GAAP net income per diluted share.

For fiscal year 2026, the Company expects net sales of at least
$40.0 billion.