Super Micro’s fourth quarter results drew a positive market reaction, as the company reported robust revenue growth driven by accelerating demand for AI infrastructure and large-scale data center solutions. Management highlighted that strong adoption of its Rack Scale AI and Data Center Building Block Solutions (DCBBS) contributed to the outperformance, supported by rapid deployment cycles and expanding partnerships with major cloud customers. CEO Charles Liang credited these results to Super Micro’s ability to deliver “large and complex AI clusters” and the effectiveness of its new preconfigured DCBBS offerings, which helped customers reduce deployment times and operational costs.
Is now the time to buy SMCI? Find out in our full research report (it’s free for active Edge members).
Super Micro (SMCI) Q4 CY2025 Highlights:
- Revenue: $12.68 billion vs analyst estimates of $10.44 billion (123% year-on-year growth, 21.5% beat)
- Adjusted EPS: $0.69 vs analyst estimates of $0.49 (41.4% beat)
- Adjusted EBITDA: $577.8 million vs analyst estimates of $440.9 million (4.6% margin, 31.1% beat)
- The company lifted its revenue guidance for the full year to $40 billion at the midpoint from $36 billion, a 11.1% increase
- Adjusted EPS guidance for Q1 CY2026 is $0.60 at the midpoint, above analyst estimates of $0.52
- Operating Margin: 3.7%, down from 6.5% in the same quarter last year
- Market Capitalization: $20.08 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Super Micro’s Q4 Earnings Call
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Ananda Baruah (Loop Capital): Asked if gross margin improvement would continue as customer mix evolves. CEO Charles Liang said, “I believe our gross margin will start to improve quarter after quarter” due to diversified customers and reduced expedite costs.
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Asiya Merchant (Citi): Inquired whether guidance is constrained by component shortages. Liang replied that the $40 billion revenue target is “conservative” and could rise if supply improves, with DCBBS gaining traction globally.
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Katherine Murphy (Goldman Sachs): Asked about investments needed to scale DCBBS and its margin profile. Liang stated the product line would become “more complete” with new modules and offers “net margin much higher” than traditional products.
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Ruplu Bhattacharya (BofA): Sought details on cost headwinds and which customers are adopting DCBBS. CFO David Weigand said costs were up across transportation and components, while Liang clarified that DCBBS appeals to all data center builders, not just large customers.
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Quinn Bolton (Needham & Company): Queried customer concentration trends and orders for upcoming platforms. Liang said customer base is diversifying and that there is early customer commitment for new NVIDIA and AMD platforms.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will monitor (1) the pace at which DCBBS adoption grows and its impact on overall margins, (2) progress in diversifying the customer base away from large hyperscale clients, and (3) management’s ability to navigate supply chain constraints. Additionally, rollout and customer uptake of next-generation platforms from NVIDIA and AMD will be a key signpost for sustained growth.
Super Micro currently trades at $33.37, up from $29.67 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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