Supermicro Computer (SMCI) reported lower-than-expected earnings for its fiscal second quarter ended Dec. 31, but the company surprised investors by increasing its revenue target for fiscal 2026. The San Jose-based data center computer manufacturer now expects $40 billion in revenue for fiscal 2026, surpassing current estimates of $29.2 billion.
The company’s preliminary results showed year-over-year growth of 5% in earnings and 54% in revenue. However, Supermicro reduced its full-year sales outlook for fiscal 2025 to a range of $23.5 billion to $25 billion, missing analyst expectations of $24.1 billion.
Despite the mixed news, SMCI stock rose over 3% in after-hours trading on Tuesday, driven by the company’s strong revenue guidance for 2026 and its partnerships with key players like Nvidia. The stock had been trading at record highs until accounting issues delayed its quarterly and annual reports.
Analysts have expressed concerns about Supermicro’s financial health, citing risks such as potential restatements, customer erosion, and reputational damage. However, some analysts, like CFRA Research’s Shreya Gheewala, remain bullish on the stock, raising their price target to 48 from 39.
Source: https://www.investors.com/news/technology/smci-stock-supermicro-fiscal-q2-2025-business-update