Super Micro Shares Plunge After Earnings Miss

Super Micro Computer Inc. (SMCI) shares dropped sharply after the company missed both fourth-quarter revenue and earnings estimates, reporting $5.76 billion in revenue and adjusted earnings of 41 cents per share. The company faces intensifying competition from larger rivals such as Dell and HP Enterprise, resulting in tighter margins and greater pricing pressure. Super Micro has repeatedly lowered its revenue outlook, most recently setting fiscal 2026 guidance at a minimum of $33 billion, above consensus analyst expectations of about $30 billion but well below its earlier $40 billion target. Delayed server demand, attributed in part to economic uncertainty and tariffs, has contributed to these downward revisions. The disappointing results and reduced guidance have led to analyst downgrades, including an Underperform rating from Bank of America, and triggered a double-digit after-hours stock decline. These developments have raised doubts about Super Micro’s ability to sustain its previous growth momentum in the evolving AI hardware market.