Overview
- The company confirmed late Tuesday that Q4 revenue was about $11.1 billion, adjusted EPS $1.70, and gross margin rose to roughly 17.5%, and it said new orders in the quarter exceeded $60 billion.
- Management guided fiscal 2027 revenue to $65 billion–$72 billion and Q1 revenue to $14.5 billion–$15.5 billion, figures that far outpace Wall Street estimates and prompted a rally in SMCI and peer shares.
- Financial risks include inventories that nearly tripled to about $12.9 billion and operating cash flow that was about negative $6.8 billion for the year, prompting plans to raise equity‑linked financing of up to $7 billion to fund component purchases.
- Analysts raised price targets on the stronger outlook while warning that Q4 margin gains may be mix‑driven and that the September quarter and audited disclosures will be key to proving the backlog converts to cash.
- Regulatory and governance overhang remain: a DOJ indictment of co‑founder Yih‑Shyan Liaw plus an independent board review and prior accounting control issues keep legal and oversight questions in focus as the company scales.