Super Micro Computer, Inc. SMCI stock declined 4.98% during the pre-market trading session on Wednesday company’s Q3 results failed to meet analyst expectations.
What Happened: Super Micro Computer announced its Q3 earnings post the market close. The company’s earnings stood at 31 cents per share, falling short of the analyst consensus estimate of 50 cents by 38%. The company’s quarterly revenue was $4.6 billion, 15.1% less than the estimated $5.42 billion.
The company reported a non-GAAP gross margin of 9.7%, after excluding $7 million in stock-based compensation expenses. Previously, Super Micro Computer had forecasted Q3 revenue between $4.5 billion and $4.6 billion, with adjusted earnings expected to range from 29 to 31 cents per share.
Charles Liang, the CEO of Super Micro Computer, noted that some customers had postponed platform decisions during the quarter. He said, “We do expect many of those commitments to land in the June and September quarters, reinforcing my confidence in our ability to meet our long-term targets, however, economic uncertainty and tariff impacts may have a short-term impact.”
The company’s stock fell 4.07% in after-hours trading to $31.60 following the announcement.
Why It Matters: Despite the disappointing Q3 results, Super Micro Computer has projected a strong Q4 revenue outlook. The company expects Q4 net sales to be between $5.6 billion and $6.4 billion and non-GAAP net income to be 40 cents to 50 cents per diluted share.
SMCI also anticipates robust demand for artificial intelligence infrastructure solutions, particularly those powered by Nvidia Corp.‘s NVDA Blackwell GPUs.
However, the company’s stock had suffered an 80% fall from its AI peak, as traders turned wary ahead of the Q3 earnings. The company’s future performance will be closely watched in the light of these developments.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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