Shares of Super Micro Computer (SMCI) jumped in after-hours trading after the technology hardware company reported earnings for its third quarter of Fiscal Year 2026. Earnings per share came in at $0.84, which beat analysts’ consensus estimate of $0.62 per share. In addition, sales increased by 122% year-over-year, with revenue hitting $10.2 billion. However, this fell short of analysts’ expectations of $12.39 billion.
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Nevertheless, Super Micro Computer said that its shift into becoming a data center infrastructure provider is gaining speed. CEO Charles Liang said that the company remains well-positioned to meet the strong demand from AI and enterprise customers. He also pointed to new U.S. manufacturing facilities in Silicon Valley as another advantage, as customers look for more data center capacity.
The company also gave an update on its balance sheet. As of March 31, 2026, Supermicro had $1.3 billion in cash and cash equivalents. However, it also had $8.8 billion in total bank debt and convertible notes. That debt level is important for investors to watch because the company is expanding quickly to support AI demand, which can require heavy investment.
Super Micro Computer Guidance
Looking ahead, Supermicro expects Q4 2026 revenue of $11.0 billion to $12.5 billion. The company also guided for GAAP EPS of $0.53 to $0.67 and non-GAAP EPS of $0.65 to $0.79, based on tax rates of about 19.4% and 20.4%, respectively.
Its GAAP outlook includes about $95 million in expected stock-based compensation, net of related tax effects, which is excluded from non-GAAP earnings. For Fiscal Year 2026, Supermicro expects revenue of $38.9 billion to $40.4 billion.
Is SMCI Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on SMCI stock based on three Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SMCI price target of $30.53 per share implies 9.8% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
