Super Micro Computer’s Q1 Earnings Amid AI Server Demand
Super Micro Computer (SMCI) prepares to report Fiscal Q1 2026 earnings on November 4, with investors bracing for a projected 49.3% YoY EPS decline to $0.38. Preliminary revenue estimates of $5 billion fell short of both company guidance and analyst expectations, triggering a recent stock dip. Despite this, SMCI shares remain up 70.5% YTD as the AI server market fuels long-term optimism.
Rosenblatt analyst Kevin Cassidy maintains a Buy rating, raising the price target to $60, citing undervalued growth potential in AI infrastructure. The consensus revenue forecast of $5.83 billion reflects a 1.9% YoY contraction, putting focus on management's commentary regarding deal pipeline and margin recovery in the hyperscale computing segment.