Super Micro Computer (SMCI) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 FY26 revenue of $12.7B, up 123% year-over-year and 153% quarter-over-quarter, driven by strong AI infrastructure demand, large-scale system deployments, and fulfillment of delayed orders.

• AI GPU platforms and Data Center Building Block Solutions (DCBBS) accounted for over 90% of Q2 revenue, with rapid expansion in product lines and global manufacturing footprint.

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

• Customer and product mix shifted toward large model builders and enterprise deployments, impacting gross margin but supporting rapid revenue growth.

• Expanded global manufacturing and established a new Federal Business Unit to target government and public sector markets.

Financial highlights

• Q2 revenue: $12.7B (up 123% YoY), exceeding guidance and including $1.5B in delayed Q1 shipments.

• Non-GAAP gross margin: 6.4% (down from 9.5% in Q1 and 11.8% YoY); GAAP gross margin: 6.3%.

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

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

• Cash flow used in operations: $24M; cash and equivalents: $4.1B; inventory: $10.6B; net debt: $787M.

Outlook and guidance

• Q3 FY26 revenue guidance: at least $12.3B; full-year FY26 revenue guidance raised to at least $40B.

• Q3 GAAP EPS expected at least $0.52; non-GAAP EPS at least $0.60; gross margin expected to improve by 30 bps sequentially.

• CapEx for Q3 expected between $70M-$90M; full-year CapEx projected at $200–$220M.

• Guidance assumes a tax rate of approximately 19.6% (GAAP) and 20.2% (non-GAAP), with a fully diluted share count of 684M (GAAP) and 699M (non-GAAP).