Super Micro Computer issued a preliminary business update for its fiscal fourth quarter on Tuesday showing gross margins roughly twice what the company had forecast, sending SMCI stock up 17% in after-hours trading.
The San Jose-based AI server maker said it now expects GAAP and non-GAAP gross margins in the range of 15% to 17% for the quarter ended June 30, 2026, compared with prior guidance of 8.2% to 8.4%
The company attributed the improvement to a favorable customer and product mix. Super Micro also disclosed that new orders during the quarter exceeded $60 billion, bringing its backlog to a record high as it closed out fiscal year 2026. Those orders are expected to be fulfilled over future quarters.
The company noted that some of the orders may not constitute firm commitments and could be subject to cancellation or delays. On revenue, Super Micro said it anticipates finishing the quarter toward the bottom of its $11 billion to $12.5 billion target range. The consensus fourth-quarter revenue estimate among analysts was $11.73 billion, according to The Wall Street Journal.