Super Micro Computer (SMCI) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 FY25 rose 54.9% year-over-year to $5.68 billion, driven by strong AI demand, new customer wins, and robust GPU server sales, especially in the U.S. and Europe.

• AI-related platforms contributed over 70% of Q2 revenue, with significant growth in enterprise and cloud service provider markets.

• Transition from Hopper to Blackwell GPU platforms underway, with volume shipments of new NVIDIA Blackwell systems starting.

• The company completed a 10-for-1 stock split effective September 30, 2024.

• Expansion of global manufacturing capacity in Malaysia, Taiwan, Europe, and the U.S. to meet rising demand.

Financial highlights

• Q2 FY25 non-GAAP gross margin approximately 11.8%–11.9%, down from 13.1% last quarter and 15.4% year-over-year, due to product/customer mix and competition.

• Non-GAAP operating margin at 7.9%; GAAP operating margin at 6.5%.

• GAAP net income for Q2 was $320.6M–$325M; non-GAAP net income at $375M–$392M.

• GAAP diluted EPS $0.50–$0.52; non-GAAP diluted EPS $0.58–$0.60, flat to up 5% year-over-year.

• Cash and equivalents at $1.4B as of December 31, 2024; total debt at $1.9B.

Outlook and guidance

• FY25 revenue guidance revised to $23.5–$25B from prior $26–$30B, reflecting technology transition and filing delays.

• Q3 FY25 net sales expected in the $5–$6B range; gross margin projected at ~12%.

• FY26 revenue target set at $40B, implying at least 65% year-over-year growth, supported by strong product pipeline and underutilized capacity.

• Q3 FY25 GAAP EPS guidance: $0.36–$0.53; non-GAAP EPS: $0.46–$0.62.

• Capital expenditures for the remainder of FY25 projected at $76–$86M, focused on manufacturing, IT, and facilities.