Super Micro Stock Plunges After-Hours After Q1 Double Miss: Investors Shrug Off FY26 Guidance Hike, But Retail Looks To Buy The Dip

• Super Micro’s first-quarter gross margin contracted to 9.3% from 9.5% in the fourth quarter and 13.1% in the year-ago quarter.
• The CEO said the order book was expanding rapidly, including more than $13 billion in Blackwell Ultra orders.
• Super Micro stock has gained more than 55% for the year-to-date period. 

Super Micro Computer, Inc. (SMCI) stock plunged over 9% in Tuesday’s extended session after the artificial intelligence (AI) server maker reported subpar quarterly results and issued fourth-quarter mixed guidance, but a rosy fiscal year 2026 outlook sent retail sentiment soaring.

Super Micro’s Q1 Earnings Snapshot

San Jose, California-based Super Micro reported adjusted earnings per share (EPS) of $0.35 for the first quarter of the fiscal year 2026, sharply lower than the year-ago’s $0.73 and trailing the Fiscal.ai-compiled consensus estimate of $0.39.

Net sales declined by more than 15% year over year (YoY) to $5.02 billion, compared to the $5.80 billion consensus estimate. 

The company warned in late October that design-win upgrades had pushed back some of the first-quarter revenue to the second quarter and preannounced first-quarter revenue of $5 billion, below the previously guided range of $6 billion to $7 billion. Super Micro’s stock fell by about 9% in the session that followed the warning.

Super Micro’s first-quarter gross margin contracted to 9.3% from 9.5% in the fourth quarter and 13.1% in the year-ago quarter. It generated cash flow from operations of $918 million in the first quarter and incurred capital expenditure (Capex) of $32 million.

Super Micro’s Outlook

Founder and CEO Charles Liang said, “With a rapidly expanding order book, including more than $13B in Blackwell Ultra orders, we expect at least $36 billion in revenue for fiscal year 2026.” This marked an upward revision from the “at least $33 billion” guidance, which the company reiterated in its first-quarter preannouncement. 

For the second quarter, the company guided to adjusted EPS of $0.46 to $0.54, missing the consensus estimates of $0.62, and net sales of $10 billion to $11 billion, versus the average analyst’s estimate of $7.93 billion.

On the earnings call, CFO David Weigand said, “Our long-term goal is to expand revenues in higher-margin segments such as data center building block solutions, emerging global CSPs, sovereign mega projects, enterprise data centers, IoT and telco solutions and software service offerings.”

What Retail Feels About SMCI Stock After Q1 Results

On Stocktwits, retail sentiment toward SMCI stock shifted from ‘bearish’ to ‘extremely bullish’ the day before. The message volume on the stream increased to ‘high’ levels. Retail chatter rose more than 250% over the 24 hours leading up to late Tuesday.

A bullish user said they added more SMCI shares following the dip.

Another watcher blamed bears for dragging the stock down and believed that it would bounce back.

Super Micro stock has gained more than 55% for the year-to-date period. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: AMD Stock Slides After-Hours Despite Robust Q3 Results, Positive Guidance — Retail Traders Position For Rebound

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