Supermicro, a prominent player in the AI server market, saw its stock plummet more than 9% in extended trading on Tuesday following disappointing earnings and revenue figures for the first quarter of its 2026 fiscal year. The company reported revenue of $5.02 billion, significantly down from $5.94 billion during the same period last year and falling short of analysts’ expectations of $6.09 billion, as reported by Bloomberg consensus estimates.
In terms of earnings, Supermicro’s adjusted earnings per share stood at $0.35, which, despite being an improvement from the $0.07 recorded in the first quarter of fiscal 2025, could not meet the $0.41 target set by analysts. This latest report marks the sixth consecutive quarter that Supermicro has missed earnings and revenue projections, highlighting ongoing challenges facing the company.
Prior to the earnings announcement, Supermicro had already tempered investor expectations by revising its first-quarter revenue outlook in late October. The forecast was lowered to $5 billion from an earlier range of $6 billion to $7 billion, with the company attributing this adjustment to delays caused by recent product design upgrades that pushed expected revenue into the second quarter.
Supermicro specializes in designing AI servers that utilize chips from Nvidia, positioning itself as an early adopter in the rapidly expanding AI market. This strategic choice initially propelled Supermicro’s stock to new heights during the AI boom. However, scrutiny has increased following a critical report by short-selling firm Hindenburg Research in the summer of 2024, which accused the company of accounting issues and violations related to export controls. This controversy led to delays in Supermicro’s quarterly and annual filings with the Securities and Exchange Commission, along with a resignation from its accountant, raising the specter of potential delisting by Nasdaq—a risk the company narrowly evaded in February.
Amid rising competition in the AI server landscape, concerns have emerged about Supermicro’s long-term profitability. The company’s share price has shown volatility throughout 2024, although it has gained over 50% this year. On Tuesday, shares of Supermicro fell more than 6% during regular trading before experiencing the after-hours decline.
