Super Micro Computer Soars 25% in Q4 Revenue, Sets Ambitious $33B FY26 Target Amid AI Boom

Super Micro Computer (NASDAQ: SMCI) has turned the tables on recent setbacks, reporting a dramatic 25% quarter-over-quarter revenue increase in fiscal Q4 2025, according to the company’s latest earnings report released on August 5, 2025. Riding the wave of explosive AI infrastructure growth and its leadership in liquid cooling solutions, the server and storage provider has also set a bold $33 billion revenue target for fiscal year 2026.

After closing at $58.23, SMCI shares saw a 1.2% lift in aftermarket trading—signaling renewed investor confidence. This latest performance marks a major turnaround from Q3 2025, where the company had faced a 19% sequential revenue decline and missed analyst expectations.

What do Super Micro Computer’s Q4 2025 earnings mean for investors?

Super Micro Computer earnings for Q4 FY2025 revealed revenue of $5.757 billion, up 25% quarter-over-quarter and 8% year-over-year. This beat its prior Q3 forecast range of $5.6 to $6.4 billion. Non-GAAP earnings per share hit $0.41, improving $0.10 sequentially but dipping $0.13 compared to last year.

The company’s core server and storage systems segment generated $5.618 billion, rising 26% quarter-over-quarter and 10% year-over-year. However, revenue from subsystems and accessories fell to $139 million, marking a 1% sequential drop and a steep 48% year-over-year decline. The transition toward full-stack AI infrastructure systems is clearly reshaping Super Micro’s business mix.

Despite these wins, gross margin dipped slightly to 9.6%, down 10 basis points sequentially and 70 basis points year-over-year. This reflects persistent pricing pressures across the competitive server landscape, even as Super Micro focuses on value-added solutions.

Why Super Micro is betting big on AI and liquid cooling tech

Super Micro is leveraging its early-mover status in AI servers by aggressively expanding its global manufacturing footprint. Currently capable of producing 5,000 racks per month, including 2,000 direct liquid cooling (DLC) racks, the company is scaling operations in Silicon Valley, Taiwan, Malaysia, with future facilities planned in Texas and Mexico.

This expansion supports its Data Center Building Block Solutions (DCBBS) strategy, which integrates server hardware, cooling towers, software management, and plug-and-play rack-scale systems. With liquid cooling expected to comprise 30% of global new data center deployments, Super Micro is doubling down on this market.

CEO Charles Liang also emphasized the company’s product leadership by announcing early shipments of NVIDIA B300/GB300 servers, reinforcing Super Micro’s position at the forefront of next-gen AI infrastructure.

Expert analysis: Is SMCI on track to meet its $33B FY26 revenue target?

Super Micro’s fiscal Q1 2026 guidance projects $6.0 to $7.0 billion in revenue with non-GAAP EPS between $0.40 and $0.52, maintaining strong sequential momentum. But the spotlight is on the fiscal year 2026 target of $33 billion, a staggering leap from FY2025’s performance.

This signals deep confidence in AI demand, hyperscale deployments, and Super Micro’s expanding partnerships to build global AI-focused hyperscale campuses. Management believes its transformation from a component supplier (SMCI 1.0) to full-stack IT solutions provider (SMCI 3.0) positions the company to ride the AI wave well into the decade.

Financial highlights: Q4 cash flow and tax rates add fuel

• Adjusted EBITDA for Q4 stood at $323.7 million, up from the prior quarter

• Cash flow from operations hit $864 million—rising $237 million sequentially and up $1.51 billion year-over-year

• Non-GAAP effective tax rate dropped to 12.2% from 15.4% YoY, boosting net earnings

These financials not only demonstrate operational resilience but also underscore the company’s capital efficiency and strategic reinvestments.

What’s next for Super Micro?

The transition to AI-first infrastructure solutions appears to be working. While gross margins remain under pressure, demand for complete data center solutions—especially with integrated cooling and power management—is rising fast. As enterprise and hyperscale clients seek turnkey solutions, Super Micro is in prime position to capitalize.

Still, to meet the aggressive $33B FY26 revenue target, execution risks remain—particularly in manufacturing scalability and maintaining competitive pricing in a fast-moving AI hardware landscape.

Super Micro Computer earnings will remain a closely watched barometer for the broader AI infrastructure space.

You Must Know:

What caused Super Micro Computer’s Q4 2025 revenue jump?
A 25% quarter-over-quarter revenue increase was fueled by strong AI infrastructure demand, new server shipments, and ramped-up liquid cooling system sales.

Is Super Micro Computer profitable in Q4 2025?
Yes, the company posted non-GAAP earnings per share of $0.41 and generated $864 million in operational cash flow despite margin pressures.

What is Super Micro’s revenue guidance for FY26?
Super Micro projects at least $33 billion in revenue for fiscal 2026, reflecting aggressive growth driven by hyperscale AI deployments and new product lines.

What technologies are driving Super Micro’s growth?
Advanced liquid cooling systems, NVIDIA AI server integration, and rack-scale data center solutions are at the core of Super Micro’s strategic focus.

Where is Super Micro expanding its manufacturing operations?
Facilities are active in Silicon Valley, Taiwan, Malaysia, with upcoming expansions in Texas, Mexico, and additional global locations to meet AI demand.

What are Super Micro’s future growth strategies?
Transitioning to full-stack IT solutions under the SMCI 3.0 model, Super Micro is moving from being a component provider to an end-to-end AI infrastructure partner.