TLDR
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SMCI stock jumps 16.86% after hours after strong Q3 update.
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Super Micro posts $483 million Q3 profit with higher margins.
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Record $60 billion backlog strengthens future revenue outlook.
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Q4 gross margin forecast rises sharply to 15%–17%.
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AI infrastructure demand supports Super Micro’s growth momentum.
Super Micro Computer, Inc. (SMCI) shares ended the regular session at $25.50, gaining 7.01%. Afterward, the stock jumped another 16.86% to $29.80 during after-hours trading. Meanwhile, the rally followed stronger profitability, expanding margins, and a record order backlog exceeding $60 billion.
Super Micro Computer, Inc., SMCI
Q3 earnings show stronger profitability despite lower sequential revenue
Super Micro reported unaudited third-quarter fiscal 2026 revenue of $10.2 billion. However, revenue declined from $12.7 billion in the previous quarter. Revenue doubled from $4.6 billion reported during the same quarter last year.
Gross margin reached 9.9% during the quarter. The figure improved from 6.3% in the previous quarter and slightly exceeded 9.6% recorded a year earlier. Non-GAAP gross margin also increased to 10.1% from 9.7% during the comparable period.
Net income climbed to $483 million from $401 million in the previous quarter. Additionally, quarterly profit increased sharply from $109 million reported one year earlier. Diluted earnings per share reached $0.72, while non-GAAP diluted earnings per share rose to $0.84 from $0.31 last year.
Record backlog supports stronger fourth-quarter business outlook
Super Micro also released a preliminary update for the fourth quarter of fiscal 2026. Revenue is expected near the lower end of previous guidance between $11.0 billion and $12.5 billion. However, projected gross margins improved significantly above earlier expectations.
The company estimated GAAP and non-GAAP gross margins between 15% and 17%. Previously, management guided gross margins between 8.2% and 8.4%. Moreover, the improvement reflected a more favorable customer mix and stronger product demand across its business.
Super Micro also announced that backlog reached a record level by fiscal year-end. Total new orders exceeded $60 billion during the fourth quarter alone. Furthermore, the company expects to deliver those orders across future reporting periods.
AI infrastructure expansion strengthens Super Micro’s long-term position
The company continued expanding its position as a provider of complete data center infrastructure solutions. Moreover, it added new manufacturing facilities in Silicon Valley during the period. The expansion increases production capacity for AI and enterprise computing systems.
Chief Executive Officer Charles Liang said, “Supermicro’s transformation into a total datacenter infrastructure provider is accelerating.” He added, “Our margin recovery and the rapid growth of our DCBBS business demonstrate that our business remains robust.” Liang also stated, “With the addition of our new US manufacturing facilities in Silicon Valley, we are exceptionally well-positioned to meet the massive demand for various AI and enterprise verticals.”
The company ended March with $1.3 billion in cash and cash equivalents. Meanwhile, total bank debt and convertible notes stood at $8.8 billion. Cash used in operations reached $6.6 billion during the quarter, while capital expenditures and investments totaled $97 million.
Super Micro remains one of the largest suppliers of AI server systems and data center infrastructure. Demand for AI computing has increased rapidly following large enterprise investments in generative AI. Consequently, higher margins and record orders strengthened market confidence despite softer sequential revenue during the quarter.
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