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SMCI
FY2026 Q2
Raised
Super Micro Computer, Inc. earnings call
Buzzberg read
DCBBS expected to double profit contribution by end of 2026
SMCI reported record quarterly revenue of $12.7B, driven by strong AI infrastructure demand. However, gross margins contracted to 6.4% due to customer mix and supply chain costs. The company raised its full-year guidance to at least $40B, signaling continued high demand. Record Q2 FY26 revenue of $12.7B, up 123% YoY, above guidance of $10B-$11B.
Buzzberg read DCBBS expected to double profit contribution by end of 2026 SMCI reported record quarterly revenue of $12.7B, driven by strong AI infrastructure demand. However, gross margins contracted to 6.4% due to customer mix and supply chain costs. The company raised its full-year guidance to at least $40B, signaling continued high demand. Record Q2 FY26 revenue of $12.7B, up 123% YoY, above guidance of $10B-$11B. Read full analysisCollapse analysis
SMCI reported record quarterly revenue of $12.7B, driven by strong AI infrastructure demand. However, gross margins contracted to 6.4% due to customer mix and supply chain costs. The company raised its full-year guidance to at least $40B, signaling continued high demand. Record Q2 FY26 revenue of $12.7B, up 123% YoY, above guidance of $10B-$11B.
- Gross margin declined to 6.4% from 9.5% QoQ due to mix and expedite costs.
- Full-year revenue guidance raised to at least $40B, Q3 guided to at least $12.3B.
- One customer represented 63% of Q2 revenue, up from 31% in Q1, indicating high concentration.
Revenue$12.6825BReported
EPS$0.69Reported
Gross margin6.3%Reported
Operating margin3.74%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Margins
Q2 gross margin hit by mix, freight, and tariffs
Customer Concentrati
One customer represented 63% of Q2 revenue
Show 3 more callouts
Guidance
Full-year revenue guidance raised to at least $40 billion
Guidance
Supply constraints may cap growth; guide called conservative
Margins
Operating leverage improved with OpEx at 1.9% of revenue
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $12.6825B | Reported |
| EPS | $0.69 | Reported |
| Gross margin | 6.3% | Reported |
| Operating margin | 3.74% | Reported |
| Free cash flow | $-0.0451B | Reported |
| Capex | $0.0212B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Gross margin | FY2026 Q3 | 6.7% | 6.7% | Maintained |
| Revenue | FY2026 | $40B | $40B | Raised |
| Revenue | FY2026 Q3 | $12.3B | $12.3B | Raised |
AI, capex & demand read
Management read
Upbeat
Management expressed strong confidence in continued growth, citing record revenue, robust demand, and strategic initiatives like DCPBS to improve margins and gain market share.
Management AI read
Management emphasized that AI infrastructure demand continues to accelerate across every major customer segment, with AI GPU platforms representing over 90% of Q2 revenue. They highlighted their unmatched capability in building some of the largest and most complex AI clusters ever, and are preparing for upcoming NVIDIA VERA Rubin and AMD Helios solutions for the second half of the year. They are c
Investment and capacity
The company is expanding its global manufacturing footprint aggressively and strategically, with new production sites in Taiwan, Malaysia, and soon the Middle East. They are investing in automation and design-for-manufacturing to improve efficiency and reduce costs. Capital expenditures for Q3 are expected to be $70-90 million, up from $21 million in Q2.
all 3 named companies below
Companiesreturns since call
Suppliers
Suppliers
Charles Liang
Inventory nearly doubled sequentially to $10.6B as SMCI built ahead for Q3 growth, indicating expectations of sustained high demand. — The inventory build signals supply chain readiness and confidence in near-term orders, but also carries risk if demand weakens.
Evidence
“we are also preparing for the upcoming NVIDIA, VERA Rubin, and AMD Helios solutions for the second half this year”
Supply chain
Supply chain
Charles Liang
SMCI is expanding its DCBBS product line to include power generators and transformers, potentially affecting power equipment suppliers. — SMCI's move into power equipment could pressure traditional power infrastructure suppliers like Vertiv.
Evidence
“We are expanding this product line to include more new categories, such as transformer, next-generation power generators, device for energy backup”
External signals
Supply-chain alpha · 3returns since call
Inventory nearly doubled sequentially to $10.6B as SMCI built ahead for Q3 growth, indicating expectations of sustained high demand.
Evidence
“Q2 closing inventory was 10.6 billion, up from 5.7 billion in Q1 as we prepared for continuing strength in Q3 shipments.”
SMCI's operating cash flow turned nearly positive sequentially due to a significantly improved cash conversion cycle from 123 days to 54 days.
Evidence
“The cash conversion cycle significantly improved from 123 days in Q1 to 54 days in Q2.”
SMCI is expanding its DCBBS product line to include power generators and transformers, potentially affecting power equipment suppliers.
Methodology & coverage
Management-only analysis. All 3 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.