Super Micro Stock Drops Sharply as Preliminary Q1 Net Sales Disappoint Wall Street Expectations
Super Micro Computer’s stock has declined sharply after the company released disappointing preliminary revenue figures. For the fiscal first quarter of 2026, which ended on September 30, net sales are projected to be around $5 billion. This figure falls well short of the management’s earlier guidance of $6 billion to $7 billion and the market analysts’ average expectation of nearly $6.5 billion.
Revenue Shortfall Explained
The management attributed this shortfall to delays in fulfilling customer orders related to recent design wins exceeding $12 billion. These orders are expected to be delivered in the second quarter of fiscal year 2026.
CEO’s Comments on Future Growth
Charles Liang, the President and CEO of Super Micro, reaffirmed the company’s target of $33 billion in revenues for the fiscal year that began in July. Liang noted an increase in customer demand, particularly in the AI sector, stating, “We see customer demand accelerating, and we are gaining AI share.”
Comparative Performance Analysis
If the net sales indeed reach $5 billion, this would represent a significant decline of approximately 20% compared to the same period last year. This trend of preannouncing revenue misses is not new for Super Micro; it previously issued a revenue warning on April 29, attributing it to delayed customer platform decisions that shifted sales into the next quarter.
- Projected Net Sales Q1 2026: $5 billion
- Previous Guidance: $6 billion to $7 billion
- Market Analysts’ Estimate: Approximately $6.5 billion
- Expected Revenue for Fiscal Year 2026: $33 billion
- Year-over-Year Decline: Roughly 20%
Frequent Revenue Timing Issues
This year has seen recurring themes of timing issues affecting Super Micro’s revenue projections. The company has faced volatility in stock performance, often making ambitious sales promises that it has failed to meet. Investors have been cautious and apprehensive of these repeated discrepancies.
Looking ahead, Super Micro has scheduled an earnings call for November 4. This call will address the second-quarter revenue outlook and expected delivery timelines, providing more insight into the company’s ongoing challenges and future prospects.
