Supermicro Stock Jumps After Company Raises Gross Margin Outlook and Highlights $60 Billion Backlog
Supermicro stock jumps after the company slashed its gross margin forecast and reported a record order backlog of over $60 billion, restoring investor confidence in the leader of AI infrastructure. The stock’s recent gain has been primarily fueled by a dramatic improvement in profitability, even if sales is still forecast to be near the low end of the prior guidance range.
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Super Micro Computer said preliminary results for the fourth quarter of fiscal 2026 indicated gross margins of between 15% and 17%, on both a GAAP and a non-GAAP basis, well above its previous forecast range of 8.2% to 8.4%. Management said the boost was driven by a better client mix and higher profit products.
The business also said it booked more than $60 billion in new orders during the quarter, sending its backlog to a record high as cloud providers and companies continue to invest substantially in AI infrastructure. Revenue still anticipated to be near the lower end of the previously disclosed $11 billion to $12.5 billion range.
Financial Performance Shows Signs of Improving Profitability
The new report comes on the heels of Supermicro’s third quarter progress. In Q3 FY2026, the firm reported:
- $10.2 billion in revenue
- Net income $483 million
- Diluted earnings per share: $0.72
- Gross margin 9.9 percent
CEO Charles Liang stated earlier the company’s move towards being a full data centre infrastructure provider is helping to boost profits while growing its AI server business. The latest preliminary figures show profitability is improving at a quicker rate than had been expected.
Investors Cheer Record Demand for AI Servers
The news was warmly received by the market as Supermicro shares jumped in extended trade. Higher earnings typically come with stronger margins so investors largely shrugged off softer revenue expectations.
Analysts also said the continued investment in AI data centres by hyperscale cloud companies is a key growth driver for server manufacturers. Now in its new fiscal year, the company has one of the largest reported order backlogs in its history, providing better visibility to revenue.
What to Watch for Investors Next
The early update will have buoyed confidence but investors will be keen to see whether the record backlog turns into revenue over the coming quarters. The company also warned that some orders are subject to client fulfilment requirements and may be delayed or cancelled.
Supermicro will reveal its entire fourth quarter financial results on August 11, giving investors an update on earnings, cash flow and forward outlook. Those outcomes will help determine if the recent stock rise is sustainable.
Sources
Nasdaq – Stock price performance, trading volume, market cap and analysts consensus
Yahoo Finance – Stock prices, Stock performance measurements, Valuation measures, Earnings calendar, Historical financials.
TradingView – Price action, Trading volume and market performance.
Bloomberg – AI Server Demand, Business Outlook & Institutional Investor Sentiment.
CNBC – Market reaction, analyst insight and AI infrastructure industry trends.
The Wall Street – Journal Company’s results, corporate AI investments, and investor analysis.
Financial Times – Trends in data centre investment, outlook for the AI infrastructure sector.
AP Business – Business verification updated, tech sector gets wider view.
