EL7.AI
StocksMedium•20 October 2026•
4 min read

Supermicro raises revenue estimate to $18.5–19.5 billion on AI demand

Key Facts

1Supermicro estimates fiscal first-quarter revenue of between $18.5 billion and $19.5 billion.
2Previous revenue guidance for the same quarter was between $14.5 billion and $15.5 billion.
3The company raised its gross margin estimate to between 12.0% and 12.5%.
4Shares rose 12% in after-hours trading on Tuesday following the raised outlook, according to Investing.com.

Supermicro on Tuesday raised its fiscal first-quarter revenue estimate to between $18.5 billion and $19.5 billion, supported by stronger demand for artificial intelligence platforms. The company said in a business update that the estimates cover the quarter ended September 30, 2026. It had previously forecast revenue of between $14.5 billion and $15.5 billion for the same period, according to its previous earnings announcement. The revision puts the entire new sales range above the upper end of the guidance previously provided to investors. The company described the figures as preliminary, unaudited estimates ahead of its discussion of quarterly results. According to Investing.com, the revenue outlook was raised because of increased demand for AI platforms.

The estimated revenue also exceeds analysts' average forecast of $14.99 billion, according to Investing.com, putting even the low end of the update above market estimates. The analyst average had fallen within the company's previous guidance range before it was raised in the latest update. On a quarterly basis, the expected revenue compares with net sales of $11.1 billion in the immediately preceding fiscal quarter, according to Supermicro's earnings announcement for that period. In the corresponding quarter of the previous fiscal year, net sales were $5.0 billion, according to the company's published results. The current estimates therefore exceed sales in both the quarterly and annual comparison periods, as well as analysts' forecasts. These comparisons are with periods for which the company has already reported results, while the latest quarter's figures remain preliminary estimates.

The update included an increase in the gross margin estimate to between 12.0% and 12.5%, compared with previous guidance of between 10.4% and 10.8% for the same quarter. The company attributed the improvement primarily to "customer and product mix," according to its statement, alongside the upward revision to revenue estimates. The low end of the revised margin range exceeds the high end of the previous estimate, with the improvement spanning the entire range presented by the company. Even so, the expected margin remains below the 17.5% recorded in the immediately preceding fiscal quarter, according to results for that period. In the annual comparison, the new range exceeds the gross margin of 9.3% in the corresponding quarter of the previous fiscal year. The update thus combines an improvement in margin relative to guidance and the corresponding period with a decline from the immediately preceding quarter.

The increase in sales estimates follows an earlier Supermicro announcement that it received new orders worth more than $60 billion during the immediately preceding fiscal quarter. When announcing those orders, the company said it expected to deliver them over subsequent quarters, extending fulfillment beyond the period in which they were received. The company linked this schedule to deliveries across multiple periods, while warning of risks associated with fulfilling some of the orders. It said some orders "may not represent firm commitments and may be subject to cancellation or delay," according to its previous business update. The possibility of cancellation means receiving an order does not guarantee its fulfillment, while a delay could push back the expected delivery date. These conditions remain attached to the announced order value and the company's delivery schedule.

In its previous earnings announcement, Supermicro had issued revenue guidance for the current fiscal year of between $65.0 billion and $72.0 billion. That guidance covers the full fiscal year, while the latest revision concerns estimates for the fiscal first quarter ended in September. The new quarterly range falls within a year for which the company had projected that level of revenue when publishing its previous results. As for business drivers, Investing.com attributed the increase in quarterly revenue to stronger demand for AI platforms. The company attributed the improvement in gross margin in its statement to the mix of customers and the products it sells to them. The sales revision was therefore linked to demand for platforms, while the margin revision was linked to the business mix during the period covered by the update.

In response to the update, Supermicro shares rose 12% in after-hours trading on Tuesday, according to Investing.com. The move followed the announcement of the raised outlook, with the revised revenue range exceeding analysts' average estimate for the period. The stock's rise coincided with the company's revision of both sales and gross margin estimates ahead of its quarterly results announcement and discussion with investors. Supermicro's estimates remain preliminary and unaudited pending completion of its quarterly results presentation. The company will discuss results for the period ended September 30, 2026, during an investor conference call, according to the schedule announced in its business update. Supermicro set November 3, 2026, as the date for that call.