Super Micro Computer (SMCI) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 FY26 revenue of $12.7 billion, up 123% year-over-year and 153% quarter-over-quarter, driven by strong AI infrastructure demand, large data center customers, and fulfillment of delayed Q1 shipments.

• AI GPU platforms and DCBBS product lines drove over 90% of Q2 revenue, with rapid expansion and preference for faster deployment and efficiency.

• Expanded global manufacturing footprint with new sites in Silicon Valley, Taiwan, Malaysia, Americas, Netherlands, and the Middle East to support scale and efficiency.

• Net income rose to $401 million, with diluted EPS of $0.60 and non-GAAP EPS of $0.69.

• Gross margin declined to 6.3%–6.4% due to customer/product mix, competitive pricing, tariffs, and component shortages.

Financial highlights

• Q2 revenue: $12.7 billion (up 123% YoY, 153% QoQ), including $1.5 billion in delayed Q1 shipments.

• Non-GAAP gross margin: 6.4% (down from 9.5% in Q1 and 11.9% YoY); GAAP gross margin: 6.3%.

• Non-GAAP operating margin: 4.5%; adjusted EBITDA: $628.6 million (5.0% of net sales).

• Q2 GAAP EPS: $0.60; non-GAAP EPS: $0.69.

• Cash and cash equivalents: $4.1 billion; net debt: $787 million; inventory: $10.6 billion.

Outlook and guidance

• Q3 FY26 net sales expected to be at least $12.3 billion; full-year FY26 revenue guidance raised to at least $40 billion.

• Q3 GAAP EPS expected at least $0.52; non-GAAP EPS at least $0.60.

• Gross margin expected to improve by 30 basis points in Q3.

• Capital expenditures for Q3 projected at $70–$90 million; FY26 CapEx expected at $200–$220 million.

• Guidance assumes tax rates of 19.6% (GAAP) and 20.2% (non-GAAP), with fully diluted share counts of 684 million (GAAP) and 699 million (non-GAAP).