Supermicro booked $11.12 billion in revenue for its fiscal fourth quarter of 2026, up 93.2 percent year on year, while net income rose sixfold to $1.18 billion — the most profitable quarter in the company's history in absolute dollars.

The June quarter, reported on the call with Wall Street analysts, marked the highest net-margin ratio Supermicro has ever recorded: 10.6 percent of revenue. The previous peak of 10.5 percent came in Q3 FY2024, when the company was roughly a third of its current size. Revenue did not set a record — that belongs to Q2 FY2026's $12.68 billion — but profitability did.

Operating income for the quarter rose by a factor of 6.6X to $1.49 billion. Supermicro ended the period with $7.52 billion in cash and equivalents, including $1.4 billion from new common stock sales and $4.2 billion from convertible preferred shares.

What drove the numbers?

AI systems — machines built on GPU accelerators plus CPU-only systems running agentic AI sandboxes — generated $6.69 billion in the quarter, up 64.2 percent year on year and comprising 60 percent of total revenues.

Founder and CEO Charles Liang said on the analyst call that between 60 percent and 70 percent of overall revenues came from traditional accelerated machines, mostly Nvidia GPUs. Another 10 percent to 20 percent came from agentic AI sandboxing or edge AI. The remaining roughly 20 percent covers traditional servers, storage, and IoT systems.

The overall systems business, including server nodes, rackscale machines, and rowscale "datacenter building block solutions," brought in an estimated $10.84 billion, a 92.2 percent increase year on year. The subsystems business — motherboards, peripheral cards, enclosures, switches, storage, and racks sold through channel partners — grew by an estimated 2.4X to $278 million.

Why did some AI orders slip?

The transition from Nvidia's Grace-Blackwell rackscale systems, which ramped last year, to the Vera-Rubin systems ramping in the coming months left a revenue gap. Supermicro filled much of it by selling large volumes of CPU servers to its biggest customers, who are consolidating workloads to make room for accelerated systems.

Some AI system orders originally slated for Q4 FY2026 will now land in Q1 and Q2 of fiscal 2027. Supermicro did not quantify the slippage precisely, but the arithmetic is telling: guidance called for $11 billion to $12.5 billion, and the company delivered just over $11.1 billion. That implies somewhere between $100 million and $1.4 billion in AI systems revenue got pushed out, with a reasonable estimate of $600 million to $700 million.

For Q1 FY2027, Supermicro is guiding revenue between $14.5 billion and $15.5 billion, driven by Vera-Rubin ramp alongside substantial Grace-Blackwell volume.

What does the full-year picture look like?

For all of fiscal 2026, Supermicro recorded $39.06 billion in sales, up 77.8 percent. Operating income reached $2.77 billion, up 2.2X, and net income hit $2.23 billion, up 2.1X and equal to 5.5 percent of revenues.

For fiscal 2027, the company guides to $65 billion to $72 billion, with a midpoint of $68.5 billion — about 78 percent growth. Higher prices on Vera-Rubin systems and improving efficiency in rowscale manufacturing with power and liquid cooling should push operating income growth ahead of revenue growth. A reasonable projection puts FY2027 operating income at $5.21 billion and net income around $4.18 billion, or 6.1 percent of revenues.

How concentrated is the customer base?

One customer alone accounted for 28 percent of fiscal 2026 revenues. Nine customers spent over $1 billion each, together representing roughly half of the year's revenue.

On capacity, Supermicro has opened a new rowscale computing facility in Silicon Valley focused on optical networking and datacenter-scale systems. The company now holds nearly 4 million square feet of design and factory space in the United States, plus substantial factories in Taiwan, Malaysia, and the Netherlands. Current output exceeds 3,000 direct liquid cooling racks per month — at up to 240 kilowatts per rack — and 3,000 air-cooled racks per month, with 500-kilowatt racks now in design and prototyping.

Does the GenAI boom lift Supermicro alone?

No. Dell, its OEM and quasi-ODM rival, is expected to book around $60 billion in AI system sales in its fiscal 2027 ending January, plus roughly $120 billion in overall datacenter sales against an enterprise base of millions of companies worldwide. By that measure, Dell and Supermicro will run AI systems businesses of about the same size — around $60 billion each — with Dell holding a much larger total datacenter franchise.

It all comes down to CPU and GPU allocations. And everyone in this market knows who controls those.