Super Micro Stock Crashes 10%+ Following Q3 Revenue Miss and Bleak Profit Forecast

Super Micro's Q3 earnings shock sends investors scrambling as revenue falls short and future profits look grim.

The Bleeding Numbers

Shares plummeted over 10% in after-hours trading—a brutal reaction to disappointing quarterly results and a weakened profit outlook that caught Wall Street off guard.

Market Meltdown

The server maker's stumble highlights how quickly tech valuations can unravel when growth targets get missed. Another reminder that traditional stock markets remain hostage to quarterly performance theater while crypto assets operate on fundamentally different timelines.

When legacy tech stumbles, smart money looks elsewhere—digital assets don't care about earnings calls.

Super Micro says better Q2 is coming despite AI slowdown concerns

In the middle of the earnings call, Super Micro tried to calm investors by raising guidance for the current quarter. The company now expects revenue between $10 billion and $11 billion, which is well above the $7.83 billion analyst consensus from LSEG.

The delayed server builds are expected to ship this quarter, which may explain the bullish outlook.

Even with the company’s tight grip on the AI server market, there are signs of pressure. Some analysts say Dell has started to pull ahead in market share.

Though Super Micro has benefited from high demand for servers packed with Nvidia GPUs, growth has clearly slowed. Before this earnings report, the stock had jumped 55% this year. That gain now looks shaky.

For the full fiscal year that ended June 30, Super Micro reported $22.0 billion in revenue, up from $15.0 billion in the previous fiscal year.

But profit dropped, as net income came in at $1.0 billion, or $1.68 per diluted share, down from $1.2 billion, or $1.92 per diluted share, the year before.

Profit margins shrink as company outlines fiscal 2026 expectations

The company’s non-GAAP gross margin for fiscal 2025 was 11.2%, after adjusting for $25 million in stock-based compensation. Non-GAAP net income totaled $1.3 billion, or $2.06 per diluted share, compared to $2.12 the previous year.

The adjustments included a $239 million loss tied to extinguishing convertible notes and related tax effects of $75 million. There was also a $23 million write-off and $8 million in tax impacts.

As of the end of June, Super Micro reported $5.2 billion in cash and equivalents, and $4.8 billion in total bank debt and convertible notes.

Rounding up the earnings press release, Super Micro said it expects net sales between $6.0 billion and $7.0 billion for the first quarter of fiscal 2026, ending September 30, 2025. It also guided GAAP earnings per diluted share of $0.30 to $0.42, and non-GAAP earnings of $0.40 to $0.52, “assuming tax rates of 13.0% and 15.5%, and share counts of 631 million and 644 million, respectively,” said the earnings report.

Included in the GAAP forecast is a $69 million in stock-based compensation, with $20 million in excluded tax effects under the non-GAAP metric.

And for the full fiscal year 2026, Super Micro is projecting at least $33.0 billion in revenue.

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