Supermicro 8-K
PositiveEarningsNew guidance
Receivables and inventory drive cash use despite record $19.9B sales; GAAP gross margin falls 480bp Q/Q.
Filed 2026-11-03 16:31 ET
- 2.02 Results of Operations
- 8.01 Other Events
- 9.01 Financial Statements and Exhibits
Summary
Q1 FY2027 preliminary results with Q2 guidance and a Series A mandatory convertible preferred-stock dividend declaration. Net sales reached a record $19.9B; GAAP gross margin was 12.7%, versus 17.5% Q/Q. Management highlighted Data Center Building Block Solutions (DCBBS), which serve deployments from gigawatt-scale data centers to single-container systems.
Q2 revenue guidance midpoint is +2.8% Q/Q from $19.95B; non-GAAP diluted EPS midpoint is $1.78 vs $1.81 in Q1. FY2027 net sales guidance is $72B-$82B.
Key Figures
| Metric | Q1 FY2027 | Q1 FY2026 |
|---|---|---|
| Revenue | $19.9B, +298% Y/Y | $5.02B |
| Gross margin | 12.7%, vs 9.3% | 9.3% |
| Gross margin, non-GAAP | 12.8%, vs 9.5% | 9.5% |
| Operating income | $2.06B, vs $182M | $182M |
| Net income | $1.59B, +847% Y/Y | $168M |
| Diluted EPS | $1.75, +573% Y/Y | $0.26 |
| Diluted EPS, non-GAAP | $1.81, +417% Y/Y | $0.35 |
| Cash flow used in operations | $(434)M, vs $(918)M | $(918)M |
- Operating cash use reflected $3.56B used by accounts receivable and $2.48B by inventory, partly offset by $3.05B from deferred revenue; capital expenditures and investments were $47M.
- At 9/30/2026, cash and cash equivalents were $6.90B and total bank debt and convertible notes were $8.6B.
- The declared 7.00% Series A preferred-stock dividend is $17.50 per preferred share, equivalent to $0.875 per depositary share; it is payable 12/1/2026 to holders of record 11/15/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Net sales | Q2 FY2027 | $19.5B-$21.5B | — | — |
| GAAP diluted EPS | Q2 FY2027 | $1.59-$1.83 | — | — |
| Non-GAAP diluted EPS | Q2 FY2027 | $1.66-$1.90 | — | — |
| Net sales | FY2027 | $72B-$82B | — | — |
Investor Takeaways
- Watch gross margin and working-capital cash conversion in subsequent quarters: stabilization from Q1’s 12.7% margin and lower cash use by receivables and inventory would test whether the company’s expanding AI infrastructure business can support profitability as it scales.
- Watch for final Q1 results after the company completes its financial close and review; revisions to the preliminary figures would change the reported baseline.
The summary is written by an AI model reading the filing.
Model 005 · prompt v173 · 2026-11-03 23:48:59Z