AI server builder Supermicro failed to please investors with its report. Shares fell

Server hardware maker Super Micro Computer didn't even reach the lowered revenue and profit expectations for the previous quarter, and provided a disappointing outlook. This increased concerns about the company's ability to capitalize on the demand for artificial intelligence equipment, Bloomberg writes.

Super Micro Computer reported adjusted earnings for the second quarter of fiscal 2026, which ends in December, will be in the range of $0.46 to $0.54 per share. And revenue is expected to be in the range of $10 billion to $11 billion. Analysts on average had forecast earnings of $0.62 per share on revenue of $8.05 billion, Bloomberg writes.

Two weeks ago, the company unexpectedly released preliminary results for the first quarter of the fiscal year, which significantly disappointed Wall Street, but the current outlook was "sluggish" even in relation to the preliminary report, the agency explains. At the time, Supermicro justified the lowered expectations by delaying contracts carried over to the current period. In addition, the company is selling off obsolete inventory and has to cut prices to compete for orders for AI servers, which puts pressure on margins.

After the report was published, Supermicro shares fell 9% to $43.2 in extended trading on November 4. In the main trading securities fell by 6.6%. Since the beginning of the year, shares of the server equipment maker have grown by 55.5%.

In the first quarter of fiscal year 2026, ended September 30, Supermicro's revenue declined 15% to $5 billion, with adjusted earnings of $0.35 per share. These numbers were below the average analysts' forecasts, even though expectations had already been lowered after the company's October 23 warning: at that time, the market was expecting $6.09 billion in revenue and $0.41 in earnings.

In a preliminary report, the company said quarterly revenue would be around $5 billion - well below the consensus at the time of $6.5 billion.

This isn't the first time the company has missed its own revenue forecasts, Bloomberg recalls. In February, Supermicro presented an optimistic long-term forecast, citing demand for AI products, and said annual revenue would be $40 billion - almost double what analysts on average expected at the time. In August, the forecast was lowered to $33 billion. On Tuesday, the company clarified that it now expects at least $36 billion in revenue this year.

This article was AI-translated and verified by a human editor