Super Micro estimates revenue of up to $19.5 billion on strong demand
Key Facts
Super Micro estimated quarterly revenue of between $18.5 billion and $19.5 billion, exceeding its previous guidance and analysts' expectations, in a preliminary update that sent its shares and those of rivals higher in after-hours trading on October 20, 2026. The update covers the first quarter of fiscal 2027, which ended in September 2026, according to the company's statement. Super Micro attributed the higher revenue estimate primarily to "increased demand for AI platforms." The company had forecast revenue of between $14.5 billion and $15.5 billion for the quarter in guidance issued with its previous annual results. Analysts' average revenue forecast was $15.23 billion, according to London Stock Exchange Group data cited by Reuters, below the lower end of the company's new preliminary range.
The improvement in Super Micro's estimates extended to gross margin, which the company put at between 12.0% and 12.5% for the first quarter of fiscal 2027. Its previous margin guidance was between 10.4% and 10.8%, according to the comparison in its preliminary business update. The new range also exceeded analysts' estimate of 10.15%, cited by Reuters in its coverage of the quarterly update. The company attributed the improvement in gross margin primarily to "customer and product mix," alongside the higher sales estimates for the quarter that had already ended. The lower end of the new margin estimate thus exceeded the upper end of the company's previous guidance, as well as analysts' estimate for the metric.
The update comes after Super Micro reported net sales of $11.1 billion in the fourth quarter of fiscal 2026, according to its previous annual results statement. The company compared those sales with $10.2 billion in the third quarter of the same fiscal year. Sales in the fourth quarter of fiscal 2025 were about $5.8 billion, according to the annual comparison included in the results announcement. In its August 2026 announcement, Super Micro set fiscal 2027 revenue guidance of between $65.0 billion and $72.0 billion. Chief Executive Charles Liang said at the time that the company had "recorded more than $60 billion in new orders" during the year preceding the announcement.
Against the backdrop of the moves in rivals' shares, Dell had reported record revenue of $47.0 billion in the second quarter of its fiscal 2027, up 58% year on year, according to its results statement. Revenue from its AI-optimized servers reached $16.4 billion during the same quarter. That business recorded a 100% year-on-year increase in revenue, according to the comparison the company provided with its latest reported quarterly results. Jeff Clarke, Dell's vice chairman and chief operating officer, said the company had "booked record orders of $60.9 billion" in its AI server business during that quarter. Dell ended the period with a record backlog of orders for those servers worth $95 billion, according to the company's quarterly results statement.
Dell's previous results included guidance for total annual revenue of $192.0 billion for fiscal 2027, according to the company's statement. That guidance represents expected year-on-year growth of 69%, under the outlook Dell announced with its previous quarterly results. In the immediate reaction to Super Micro's update, its shares rose 11.3% in after-hours trading following the October 20, 2026 session, according to Reuters. Dell and HPE shares posted gains ranging from 3.5% to 4.9% in after-hours trading following the update, the news agency reported. Super Micro's gains were thus greater than the range of increases recorded by the two rivals' shares, following the announcement of revenue and margin estimates above expectations.
Super Micro confirmed in its update statement that the new financial figures for the quarter ended in September were unaudited. It said the figures were based on preliminary results and management estimates, pending completion of closing procedures and preparation of financial statements. The company described the estimates as "inherently uncertain and subject to revision," among the caveats accompanying the preliminary announcement. It said completion of closing procedures and financial statements could lead to revisions to those estimates, which include revenue and gross margin for the period. The company scheduled its quarterly earnings call for November 3, 2026, the next announced occasion for presenting results for the first quarter of its fiscal 2027.