SMCI · Super Micro Computer, Inc.

Super Micro Computer delivered strong Q3 FY2026 results with net sales of $10.2 billion, more than doubling the $4.6 billion reported in the same quarter last year. GAAP gross margin recovered significantly to 9.9% from 6.3% in the prior quarter, reflecting improved pricing dynamics and product mix, which management attributed to the transformation into a total datacenter infrastructure provider. Net income rose to $483 million, resulting in GAAP diluted EPS of $0.72. Despite robust profitability, the company reported a substantial $6.6 billion cash outflow from operations, primarily driven by significant increases in accounts receivable and inventory, which surged to $8.4 billion and $11.1 billion, respectively. This working capital buildup reduced the cash balance to $1.3 billion, while total debt obligations increased to $8.8 billion. Management highlighted the expansion of US manufacturing facilities in Silicon Valley to meet AI and enterprise demand. Looking forward, the company guided Q4 FY2026 net sales to a range of $11.0 billion to $12.5 billion, with GAAP EPS expected between $0.53 and $0.67. Investors should note the ongoing independent Board review regarding export-control transactions, which could impact reported results.