"CEO Charles Liang indicated that non-GAAP gross margins are expected to improve by 30 basis points relative to Q2 FY '26 levels, aiming for double-digit growth soon."
"Supermicro's revenue surged to $12.68 billion, exceeding expectations, but GAAP gross margins dropped significantly due to pricing pressures from large AI deployments."
"Liang noted that Data Center Building Block Solutions contributed 4% of profits in the first half, with expectations for this to grow significantly by the end of 2026."
"Despite a strong revenue performance, Supermicro's shares have declined 5.9% since the February 3 earnings report, reflecting investor concerns over margin recovery."
Supermicro is under investor scrutiny ahead of its Q3 FY2026 results, following a record December quarter with revenue of $12.68 billion, a 123.36% year-over-year increase. Despite this, GAAP gross margins fell from 11.8% to 6.3% due to aggressive pricing strategies. CEO Charles Liang has raised the FY26 revenue outlook to at least $40 billion. Key areas of focus include gross margins, Data Center Building Block Solutions profitability, and the Blackwell Ultra order book, which holds over $13 billion in orders.
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