Super Micro Computer Inc (NASDAQ:SMCI) shares surged more than 13% after the company reported fiscal second quarter earnings that exceeded analyst expectations and issued forward guidance above Wall Street estimates, reflecting continued demand for AI-focused infrastructure hardware.
The San Jose, California–based company reported non-GAAP diluted EPS of $0.69 for fiscal Q2 ended December 31, 2025, surpassing the $0.49 Wall Street consensus. Net income totaled $401 million, compared with $321 million in the year-ago period.
Net sales reached $12.7 billion, up from $5.7 billion a year earlier and $5 billion in the prior quarter. This was also about $2 billion higher than the Street consensus.
Gross margins declined amid rapid scaling and pricing pressure, with GAAP gross margin at 6.3%, down from 11.8% in the same quarter last year, while non-GAAP gross margin was 6.4%.
Looking ahead, Super Micro projected at least $12.3 billion in revenue for fiscal Q3 2026, exceeding analyst expectations of roughly $10.2 billion to $10.25 billion. The company also forecast GAAP diluted EPS of at least $0.52 and non-GAAP diluted EPS of at least $0.60.
For the full fiscal year 2026, Super Micro expects net sales of at least $40 billion, though it did not provide specific guidance for Q4 in the release.
Super Micro CEO Charles Liang said the company is expanding its global manufacturing footprint and scaling deployments to support large AI and enterprise customers, highlighting its Data Center Building Block Solutions platform as a key growth driver.
“Our DCBBS, Data Center Building Block Solutions, enable customers to scale faster, greener, and at lower cost, Supermicro is well positioned to capture the next wave of AI and IT infrastructure demand,” Liang said.