DCBBS is and will become an increasingly important part of our value. In the first half of fiscal year '26, DCBBS solutions accounted for 4% of our profit. We expect this part of our profit to grow and meaningfully contribute to the second half of fiscal '26, and we see that growth accelerate to at least double-digit contribution by end of calendar 2026.
— Charles Liang
03Detailed Report
SMCI.NE
Company SMCI.NE
Period
Q2 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 7, 2026
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Executive Summary
- Super Micro delivered a record Q2 FY2026 revenue of $12.68 billion, up 123% year-over-year and 153% quarter-over-quarter, driven by rapid ramp of Rack Scale AI solutions and a GPU-centric product mix. Management highlighted ongoing AI infrastructure demand across enterprise, cloud, and edge deployments as a tailwind for the business.
- The quarter showcased a meaningful but near-term margin challenge: non-GAAP gross margin was 6.4% (GAAP 6.? not disclosed in transcript), down from 9.5% in Q1, pressured by customer mix, elevated freight/expedite costs, component shortages, tariffs, and the costs of shipping new platforms at scale. Management signaled that gross margin should improve sequentially in Q3 and that DCBBS (data center building block solution) is expected to become a higher-margin, increasingly material contributor by calendar year 2026, with a target of double-digit profitability contribution.
- Management also emphasized A.I. scale-driven capex efficiency efforts (DFM, modular subsystems, automation) and expanding global manufacturing footprint to support growth while aiming to improve long-term profitability. DCBBS is positioned as a strategic differentiator, addressing time-to-delivery, energy efficiency, and total cost of ownership.
- The company issued conservative but solid guidance for the next quarter and full year: Q3 net sales expected to be at least $12.3B; full-year revenue at least $40B; Q3 GAAP EPS at least $0.52 and non-GAAP EPS at least $0.60; gross margins to be up about 30 bps versus Q2; capex guidance of $70-90M. The backlog and order activity remain robust, with management noting “unprecedentedly strong” demand for AI and IT infrastructure and backlogs well into calendar 2026.
Key Performance Indicators
Revenue
Increasing
12.68B
QoQ: 152.75% | YoY: 113.61%
Gross Profit
Increasing
798.57M
6.30% margin
QoQ: 70.86% | YoY: 2.96%
Operating Income
Decreasing
474.30M
QoQ: 160.24% | YoY: -6.85%
Net Income
Decreasing
400.56M
QoQ: 138.03% | YoY: -5.60%
EPS
Decreasing
0.67
QoQ: 139.29% | YoY: -6.94%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $12.682B in Q2 FY2026; YoY growth 123%; QoQ growth 153%;
Gross profit: $0.799B; Gross margin (non-GAAP) 6.4% in Q2 vs 9.5% in Q1;
Operating income: $0.474B; Operating margin (non-GAAP) 4.5% in Q2 vs 5.4% in Q1;
Net income: $0.401B; Net income margin 3.16%; Diluted EPS: GAAP $0.60; Non-GAAP EPS $0.69;
Cash flow: Operating cash flow -$23.9M; Capex $21M; Free cash flow -$45M;
Cash balance: $4.10B at quarter end; Total debt: $4.91B; Net debt: approximately $0.79B (per management commentary);
Working capital: Cash conversion cycle 54 days (improved from 123 days); Inventory days 63; DSO 49 days; DPO 58 days;
Backlog/Order flow: Broad-based demand with well in excess of $13B in orders outstanding; Q2 included roughly $1.5B of delayed Q1 shipments;
Backlog focus: >$13B orders provides visibility into Q3 onward.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
12.68B
113.61%
152.75%
Gross Profit
798.57M
2.96%
70.86%
Operating Income
474.30M
-6.85%
160.24%
Net Income
400.56M
-5.60%
138.03%
EPS
0.67
-6.94%
139.29%
Key Financial Ratios
Management Insights Available for Members
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