AI Server Surge Doubles Quarterly Revenue, But Margins Plummet

Super Micro Computer, Inc. (SMCI) reported second-quarter fiscal 2026 revenue of $12.7 billion (approximately ₩16.5 trillion), up sharply from $5.7 billion (₩7.4 trillion) a year earlier. However, GAAP gross margin declined markedly from 11.8% to 6.3%. Net income rose to $410 million (₩0.5 trillion) from $321 million (₩0.4 trillion) in the prior-year quarter, but operating cash flow was negative $24 million (₩0.003 trillion) due to working-capital expansion.

For third-quarter fiscal 2026, the company forecasts at least $12.3 billion in revenue and a full-year minimum of $40 billion, citing strong AI server and storage demand and expanded global production capacity.

In recent board disclosures, restricted stock units vested into common shares for lead independent director Tally C. Liu, and new RSU awards were granted to Chief Accounting Officer Kenneth Cheung, vesting in two future installments. These were routine, board-approved share-based compensation filings with no open-market share transactions.

Following the second-quarter revenue surge, Supermicro raised its fiscal-2026 revenue outlook from a prior minimum of $33 billion to at least $40 billion, a move highlighted by media and financial data firms. At the same time, analysts warn that profitability remains under pressure with gross margins in the mid-single digits and that inventory and working-capital builds could pose challenges.

Headquartered in San Jose, Supermicro manufactures servers and storage systems and has been gaining share in the cloud and AI infrastructure market with GPU-based AI servers and direct-liquid-cooling solutions for data centers. The explosion of generative AI has driven rapid growth in demand for AI-optimized servers and high-performance computing infrastructure, spurring accelerated investment and capacity expansion across the global server and data-center equipment industry, including competitors such as Dell, HPE, and Foxconn.