Super Micro Computer, Inc. Q1 FY2027 Earnings Call

· Earnings call transcript and AI-powered summary

Super Micro Computer (SMCI) Q1 FY2027 Earnings Summary

Date of Call: November 3, 2026 | Fiscal Periods: Q1 FY2027 (ended ~Sep 2026) vs. Q1 FY2026 and Q4 FY2026

Revenue Performance

  • Total revenue: $19.9 billion — up 298% year-over-year (YoY) and 79% sequentially from Q4 FY2026.
  • Exceeded original guidance ($14.5B–$15.5B) and pre-announced range ($18.5B–$19.5B).
  • Included $2.3B in catch-up deployments from prior periods; underlying revenue ~$17.6B.
  • AI solutions: 71% of revenue (up from 59% in Q4 FY2026); expected 70–80% for full FY2027.
  • Enterprise & channel: $4.9B (25% of revenue), +229% YoY, -12% sequentially.
  • OEM/large data center: $14.7B (74%), +321% YoY, +167% sequentially.
  • One customer accounted for 44% of revenue (vs. 28% for full FY2026).
  • Geography: U.S. 80% (+771% YoY), Europe 11%, Asia 6%.

Profitability & Margins

  • Non-GAAP gross margin: 12.8% — +330 bps YoY; 200–240 bps above guidance (10.4–10.8%). GAAP gross margin 12.7% (down 480 bps from Q4's 17.6%).
  • Sequential margin pressure due to higher mix of large-scale AI deployments; combined Q4+Q1 non-GAAP gross margin ~14.5% (vs. ~9.5% prior year) on nearly tripled revenue.
  • Non-GAAP operating margin: 10.9% (vs. 14.3% in Q4); combined Q4+Q1 ~12.1% (vs. ~5.4% prior year).
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Operator: Thank you for standing by. My name is Jen, and I will be your conference operator today. At this time, I would like to welcome everyone to Super Micro's First Quarter Fiscal Year 2027 Earnings Call. Joining us today are Charles Liang, Founder, President and Chief Executive Officer; Mark Long, Chief Financial Officer; former Chief Financial Officer, David Weigand; and Michael Staiger, Senior Vice President of Corporate Development. [Operator Instructions] Thank you. Michael Staiger, you may begin your conference. Michael Staiger: Thank you, Jen. Good afternoon, and welcome to Super Micro's conference call for the first quarter of fiscal 2027. As you heard, with me today are Charles Liang, Founder, Chairman and Chief Executive Officer; Mark Long, Chief Financial Officer; and Former Chief Financial Officer, David Weigand. By now, you should have received a copy of the press release from the company that was distributed at the close of regular trading and is available on the company's website. Our call is being webcast live on Super Micro's Investor Relations website and will be available for replay until the conference call -- for later to discuss our financial results for the second quarter of fiscal '27. The content of today's call is Super Micro's property. It can't be reproduced or transcribed without our prior written consent. During this call, we may make forward-looking statements based on current expectations, including with respect to our business plans and pe
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