Supermicro (SMCI) is set to report quarterly financial results for the first quarter of its 2026 fiscal year after the bell on Tuesday, and Wall Street analysts are hopeful about the AI server maker’s prospects after a turbulent year.
The company is expected to report revenue of $6.09 billion for the period, up from $5.94 billion during the first quarter of its 2025 fiscal year, according to Bloomberg consensus estimates. Analysts project Supermicro will report adjusted earnings per share of $0.41, up from $0.07 in the year-ago period.
The server maker has been in the spotlight since a scathing report by short-selling firm Hindenburg Research, released in the summer of 2024, accused the company of accounting and export controls violations. The report led to Supermicro delaying its quarterly and annual filings to the Securities and Exchange Commission, and its accountant resigned, putting it at risk of being delisted by the Nasdaq — a risk it narrowly avoided this past February.
The stock was incredibly volatile throughout 2024. Shares are up 60% so far in 2025.
Meanwhile, rising competition in the artificial intelligence server market has also raised questions about Supermicro’s long-term profitability. The company’s earnings fell below Wall Street’s expectations in each of the past five quarters, per Bloomberg data.
Supermicro designs AI servers equipped with chips from Nvidia (NVDA). The company was an early mover in the AI market, which helped fuel its stock to new highs amid the AI boom.
Supermicro shares fell in late October after the company lowered its first quarter revenue outlook to $5 billion, below its previous range of $6 billion to $7 billion.
The company explained the change by saying its recent product design upgrades have pushed back some of the revenue it expected to see in the first quarter of its 2026 fiscal year to the second quarter. Supermicro noted “robust demand” for its servers using Nvidia and AMD (AMD) chips and touted “recent design wins” resulting in more than $12 billion worth of orders. The server maker also maintained its $33 billion revenue outlook for the year.
“We see customer demand accelerating, and we are gaining AI share,” CEO Charles Liang said in a statement on Oct. 23.
Some Wall Street analysts remain optimistic about its upcoming earnings on Tuesday.
Loop Capital analyst Ananda Baruah wrote in a note to investors on Oct. 26 that Supermicro’s update boosted his confidence that it could see $40 billion in revenue during the 2026 calendar year. He said recent AI megadeals and the growing sovereign AI market are positive signals for the company. Baruah added that he believes Supermicro accounts for as much as half of tech giant xAI’s server orders.
