Super Micro Computer Q4 Earnings Miss Estimates, Revenues Rise Y/Y

Super Micro Computer SMCI reported fourth-quarter fiscal 2025 non-GAAP earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 6.8%. The bottom line declined 34.9% on a year-over-year basis.Super Micro Computer’s fourth-quarter fiscal 2025 revenues of $5.76 billion missed the Zacks Consensus Estimate by 3.82%. The top line improved 8.5% year over year and 25.2% sequentially.Due to the weaker-than-expected performance, SMCI stock plummeted 16.73% in the pre-market hours on Wednesday.Super Micro Computer’s Q4 Performance in DetailComing to SMCI’s business segments, revenues from Server and storage systems (97.6% of total revenues) increased 10% year over year to $5.62 billion. Subsystems and accessories (2.4% of total sales) decreased 48% to $139 million.Super Micro Computer, Inc. Price, Consensus and EPS Surprise Super Micro Computer, Inc. price-consensus-eps-surprise-chart | Super Micro Computer, Inc. QuoteBy geography, the United States accounted for 38% of the total sales, which decreased 33% year over year. Asia accounted for 42% of the fiscal fourth quarter revenues, which reflects a year-over-year increase of 91%.Revenues from Europe accounted for 15% of the total revenues, which reflects a year-over-year increase of 66%. Revenues from the Rest of the World accounted for 5% of the total revenues, which increased 53% on a year-over-year basis.By customer vertical, Enterprise/Channel revenues totaled $2.1 billion, accounting for 36% of total sales. This reflects a year-over-year increase of 7% and strong sequential growth of 6%, with the product mix shifting toward OEM & large datacenter, which surged 40% quarter over quarter.OEM Appliance and Large Data Center verticals contributed $3.7 billion, representing 63% of total fourth-quarter fiscal 2025 revenues. The Emerging 5G, Telco, Edge, and IoT vertical represented 1% of total revenues.SMCI’s Operating DetailsSMCI’s non-GAAP gross margin of 9.6% reflects a decline of 70 basis points year over year and 10 basis points sequentially. This decline was primarily due to unfavorable product and customer mix, including heavier hyperscale and GPU rack shipments with lower margins.Non-GAAP operating expenses increased 29% year over year while declining 11% sequentially to $239 million. The operating expenses increased as SMCI is spending heavily on the development of next-generation AI systems and its Datacenter Building Block Solutions, along with second-generation Direct Liquid Cooling technology.Furthermore, the operating expenses increased as the company is expanding its production capacity in Malaysia, Taiwan, Europe, and the United States. As SMCI scaled sales, R&D, and support, this increased operating expenses.SMCI’s Balance Sheet & Cash FlowAs of June 30, 2025, total cash and cash equivalents were $5.17 billion, up from $2.54 billion in the previous quarter.Operating and free cash flow for the reported quarter were $864 million and $841 million, respectively.Semtech Offers Q1 GuidanceFor first-quarter fiscal 2026, SMCI expects net sales of $6 billion to $7 billion. SMCI’s non-GAAP earnings are expected in the range of 40-52 cents per share.For fiscal 2026, SMCI expects revenues to be $33 billion.Zacks Rank & Stocks to ConsiderSMCI currently has a Zacks Rank #5 (Strong Sell).Alkami Technology ALKT, Arista Networks ANET and Amphenol APH are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. While ANET and ALKT carry a Zacks Rank #2 (Buy) each, APH sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Alkami Technology shares have lost 34.5% year to date. The Zacks Consensus Estimate for Alkami Technology’s full-year 2025 earnings is pegged at 15 cents per share, up by 2 cents over the past 30 days, implying growth of 51.7% from the year-ago quarter’s reported figure.Arista Networks shares have lost 11.9% year to date. The Zacks Consensus Estimate for ANET’s full-year fiscal 2025 earnings is pegged at 65 cents per share, up by a penny in the past 30 days, indicating year-over-year growth of 13.66%.Amphenol shares have gained 45.1% year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $2.69 per share in the past seven days, indicating year-over-year growth of 42.33%.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH): Free Stock Analysis Report Super Micro Computer, Inc. (SMCI): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Alkami Technology, Inc. (ALKT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks