Super Micro Computer (SMCI) investor relations material

Executive summary

• Achieved Q3 FY2026 revenue of $10.24 billion, up 123% year-over-year but down 19% sequentially, driven by strong AI infrastructure and DCBBS growth.

• Non-GAAP gross margin recovered to 10.1%, up from 6.4% in Q2 and 9.7% year-over-year, driven by improved product mix and lower tariffs.

• Non-GAAP diluted EPS was $0.84, up $0.53 year-over-year and $0.15 sequentially, exceeding guidance.

• Cash flow from operations was negative $6.62 billion for the quarter.

• Leadership in AI and IT infrastructure solutions, with high-volume shipments of NVIDIA and AMD platforms and record backlog in AI GPU-related platforms.

Financial highlights

• Q3 FY2026 revenue: $10.24 billion (up 123% YoY, down 19% QoQ).

• Non-GAAP gross margin: 10.1% (up from 6.4% in Q2 and 9.7% YoY).

• Non-GAAP diluted EPS: $0.84 (up from $0.31 YoY, up $0.15 QoQ, above guidance).

• Adjusted EBITDA for Q3 FY2026: $814 million (7.9% of net sales, up from 5.5% YoY).

• Net income for Q3 FY2026: $483 million; cash flow used in operations: $6.6 billion.

Outlook and guidance

• Q4 FY2026 net sales expected between $11.0 billion and $12.5 billion.

• Q4 GAAP diluted EPS guidance: $0.53–$0.67; non-GAAP: $0.65–$0.79.

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

• Q4 gross margin expected between 8.2%–8.4%.

• 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).