Super Micro Computer, Inc.

Super Micro Computer, Inc. (Nasdaq: SMCI), commonly called Supermicro, supplies server, storage and data-center systems, including equipment for artificial-intelligence computing. Its business combines hardware with networking, installation, integration, software and support services.

The latest figures cover the first quarter of fiscal 2027, ended September 30, 2026. They are preliminary estimates: financial closing procedures are incomplete. Fiscal 2027 ends June 30, 2027.

A much larger quarter, with a cash outflow

Our complete cash-flow comparison groups eight operating asset and liability changes. Together they absorbed $2.182 billion, versus $1.228 billion a year earlier. Net income plus the listed noncash adjustments improved to $1.748 billion from $310 million. The result was a smaller operating-cash outflow.

Receivable, inventory and prepaid/other asset adjustments totaled a negative $6.387 billion. Deferred revenue added $3.054 billion to the reconciliation, with other operating liabilities adding $1.151 billion.

Deferred revenue includes both advance consideration and amounts invoiced before performance. It can therefore arise alongside a receivable, without cash already collected. The company historically recorded it for extended warranties, on-site services and some future product sales.

Earnings for common shareholders

Consolidated net income is not the numerator used for common EPS. Preferred dividends and allocations to participating securities reduce basic common income to $1.267 billion. The diluted common numerator is $1.308 billion after further convertible-note and earnings-allocation adjustments.

Adjusted results remove stock compensation and related tax effects, then recalculate the preferred participation and dilution. Adjusted diluted common income is $1.381 billion, using 764.4 million shares, versus 749.4 million for GAAP. Adjusted EBITDA also adds interest expense, income taxes and depreciation and amortization.

Forecasts and the earlier update

August's sales forecast for the September quarter was $14.5 billion to $15.5 billion. October 20's preliminary update raised that estimate to $18.5 billion to $19.5 billion. The November figure exceeded even that range, but most of the sales increase was already flagged.

The current annual sales outlook is $72 billion to $82 billion, versus August's $65 billion to $72 billion. For the December quarter, management expects sales of $19.5 billion to $21.5 billion, GAAP diluted EPS of $1.59 to $1.83 and adjusted diluted EPS of $1.66 to $1.90.

Cash and financing

September cash was $6.897 billion, versus $7.521 billion in June. Bank borrowing and convertible-note carrying amounts totaled $8.646 billion, versus $8.720 billion. Restricted cash is separate from the cash balance quoted here.

Mandatory convertible preferred stock had a $4.226 billion equity book value. It is separate from bank debt and convertible notes. The June financing had already closed before this quarter; its annual dividend rate is 7%, with mandatory conversion expected around June 2029.

The company paid $63.7 million of preferred dividends during the quarter and recorded $41.6 million of capital spending. Another $5 million was an equity-security investment. It also reported $43.4 million of receivables-agreement proceeds within financing cash flow.

A separate $1.25 billion at-the-market share-sale program was established in June. That is optional offering capacity, rather than cash already raised. Read our analysis of the preliminary cash-flow gap for the full operating-balance comparison.