Earnings Recap — Q4 FY2026
CY Q3 2026 · Reported August 11, 2026 · Beat 3 of last 7 quarters
The Buildout is a website built on agentic AI tools, currently in beta, and could have factual errors.
Super Micro's record $60B+ in new orders and FY2027 revenue guidance of $65B–$72B underscore the accelerating pace of AI infrastructure buildout, with demand shifting toward total data center solutions (DCBBS) and liquid cooling. The company's expansion to 6,000+ racks per month, including 3,000+ DLC racks, signals continued capacity investment to support hyperscale and enterprise AI deployments. The mix shift toward enterprise and CPU-based products, while still AI-heavy, suggests a broadening of the AI infrastructure market beyond pure GPU training clusters.
Q4 FY2026 revenue was $11.1 billion, up 93% YoY and 9% QoQ, near the low end of guidance due to customer readiness delays in power, cooling, and networking. Non-GAAP gross margin surged to 17.6% from 10.1% in Q3, driven by favorable mix and lower tariffs/inventory reserves. The company reported record new orders of over $60 billion in Q4, with enterprise and channel revenue jumping to 50% of total revenue. Non-GAAP EPS of $1.70 beat guidance, and the company completed a $5.6 billion equity raise, ending the quarter with $7.5 billion in cash. AI solutions contributed approximately 60% of Q4 revenue, down from over 80% in Q3 due to timing of large AI project ramps.
Management guided Q1 FY2027 revenue to $14.5B–$15.5B and non-GAAP EPS to $1.01–$1.10, with gross margin of 10.4%–10.8%. For full-year FY2027, they raised revenue guidance to $65B–$72B, reflecting strong demand and record backlog. They emphasized a strategic focus on balancing customer and product mix to drive sustainable margin expansion, with DCBBS and enterprise/CPU-based products expected to contribute higher margins. Management also noted normalizing cash conversion cycle and no plans to use the ATM program, while continuing to expand manufacturing capacity to over 6,000 racks per month, including 3,000+ DLC racks. The tone was confident, citing accelerating growth momentum and a historic infrastructure buildout.
“In our preannouncement, we disclosed over $60 billion in new orders, driving our order book and backlog to new record levels as we enter fiscal year 2027.”
on Record orders and backlog
“While Q4 revenue came in at $11.1 billion due to some short-term customer delays in power shortage, cooling, and networking, we know this is purely a timing story.”
on Q4 revenue miss explanation
“We are balancing top-line expansion with bottom-line profitability by focusing on growing enterprise customer base, customer mix, DCBBS solutions, and operational discipline.”
on Margin strategy
What's a good way to think about what fiscal year '27 gross margins can be? You benefited from mix in June. It sounds like you're absorbing some of that mix from deal pushout in September. Can you walk us through the puts and takes on margins?
Charles Liang explained that the company will carefully balance revenue and profitability, focusing on higher-margin CPU, storage, and enterprise products while growing DCBBS. David Weigand added that they guided to 10.4%–10.8% for September and are doing everything possible to find the best margins.
Was there any change in buying patterns, specifically for the large DC and CSP customers? There seems to be some investor concern that maybe these customers are going more directly to ODMs than they have been typically to the likes of Super Micro.
Charles Liang acknowledged that large data centers always have power and readiness concerns, especially with liquid cooling, but noted that orders for September and December quarters remain strong. He emphasized that Super Micro covers both OEM and ODM business, so they can serve both large data centers and growing enterprise customers.
Given the pace of GPU platform transitions, how are you managing inventory risk around each new generation? And what gives you the confidence that the record order backlog won't result in significant inventory exposure?
David Weigand said they try to ensure noncancelable POs and match procurement with shipment schedules. Charles Liang added that their building block architecture makes subsystems compatible across product lines and generations, helping mitigate inventory risk.