Super Micro's quarterly results underwhelm, shares fall
Shares of the San Jose, California-based firm slumped 15% in extended trading. They have soared 91% this year, as investors bet on strong demand for its AI servers and its liquid cooling solutions.
Super Micro has been gaining traction in the hyper-competitive server industry, but analysts have said larger rivals such as Dell Technologies (DELL.N), opens new tab and HP Enterprise (HPE.N), opens new tab have been able to leverage their vast customer base to boost sales.
"Since we know the market for servers is very strong right now, it is safe to assume the disappointing results for Super Micro are due to share losses," said Gil Luria, managing director at D.A. Davidson & Co.
"Their customers are very discerning right now and are choosing servers from Dell, HP and others," Luria added.
Super Micro expects revenue of at least $33 billion for fiscal year 2026, compared to analysts' average estimate of $29.94 billion, according to data compiled by LSEG.
The company, which is bouncing back from accounting-related issues, said revenue for the three months ended June 30 was $5.76 billion, compared with analysts' average estimate of $5.89 billion.
Its adjusted earnings of 41 cents per share fell short of estimates of 44 cents.
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