Here's our initial take on Super Micro's preliminary results.
| Metric | Q3 2024 | Q3 2025 | Change | vs. Expectations |
|---|---|---|---|---|
| Revenue | $3.85 billion | $4.5 billion to $4.6 billion | +18% | Missed |
| GAAP earnings per share | $0.66 | $0.16 to $0.17 | -75% | n/a |
| Non-GAAP earnings per share | $0.67 | $0.29 to $0.31 | -55% | Missed |
Super Micro Computer (SMCI -16.81%) released preliminary results for the third quarter of fiscal 2025 on Tuesday afternoon, disclosing that it would fall well short of its previous guidance. The company now expects to generate revenue between $4.5 billion and $4.6 billion, still up on a year-over-year basis but far below its previous outlook of $5 billion to $6 billion.
The company also slashed its outlook for GAAP and non-GAAP earnings per share. GAAP EPS is now expected between $0.16 and $0.17, down from a previous range of $0.36 to $0.53. Non-GAAP EPS is expected between $0.29 and $0.31, compared with prior guidance of $0.46 to $0.62.
Super Micro blamed delayed customer platform decisions that shifted sales into the fourth quarter for the revenue shortfall. The company expects its gross margin to dip 220 basis points from the second quarter due to charges related to older inventory and costs to expedite time-to-market for new products. Super Micro noted that design wins for new-generation products have been robust.
Shares of Super Micro were down about 17% in after-hours trading Tuesday as investors digested the bad news. The big revenue and profit miss, plus the lack of a complete earnings release, gave investors plenty to worry about. As of market close Tuesday, Super Micro stock was down 70% from its all-time high reached in early 2024.
Super Micro's unexpected slowdown in its fiscal third quarter is timed with other developments in the AI infrastructure market. Both Microsoft (MSFT -1.50%) and Amazon (AMZN -3.37%) have reportedly pulled back on data center leases, which raises questions about the durability of demand for AI servers. With Super Micro writing down older inventory and rushing new products to market, the company's customers may be more cautious given the shaky economic environment.
Super Micro didn't provide a date for its full third-quarter report.
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