Super Micro’s Record Quarter and Higher Outlook Meet Margin Squeeze, Dividing Analysts

Investors weigh a revenue surge against thin gross margins, with concentration risk in focus.

Overview

Fiscal Q2 revenue reached $12.7 billion with EPS of $0.69, topping consensus on both metrics.
Management guided FQ3 sales to $12.3 billion and raised the FY26 revenue target to $40 billion.
Gross margin was about 6.4% due to discounted large-customer deals and expedited shipping, though some DCBBS offerings are expected to exceed 20% gross margin.
Growth was driven by the ramp of GB300 systems and broader adoption of DCBBS that speeds AI factory deployments.
The stock reaction was muted as views diverged: Rosenblatt reiterated Buy at $50, Needham kept Buy but cut its target to $40, and Goldman Sachs maintained Sell at $27, citing pricing power of large customers, competition, and component shortages.