- Revenue Growth Super Micro reported $22 billion in FY25 revenue, a 47% YoY increase.
- EPS Decline Non-GAAP EPS dropped to $2.06 from $2.12 YoY, primarily due to tariff impacts.
- Q4 Performance Q4 revenue reached $5.8 billion, up 8% YoY and 25% QoQ.
- AI Platform Demand Over 70% of Q4 revenues came from next-gen AI and GPU platforms.
- Growth Outlook FY26 revenue is expected to exceed $33 billion, driven by AI and DCBBS solutions.
Segment Performance and Customer Growth
The number of large-scale data center customers grew significantly from 10 in fiscal year '24 to 14 in fiscal year '25. Super Micro introduced its data center building block solution (DCBBS), enabling customers to quickly adapt to evolving market demands. The company's global footprint allows it to optimize solutions efficiently with minimal tariff impact. As Charles Liang mentioned, "We expect to grow better in 2026 than last year," driven by the adoption of DCBBS and upcoming product innovations.
Outlook and Guidance
For Q1 fiscal year '26, the company expects revenue between $6 billion and $7 billion, driven by continuing momentum across AI and DCBBS. For the full fiscal year 2026, it expects at least $33 billion in total revenue, supported by an expanding customer base and new product innovations. The expected revenue growth for fiscal year 2026 is approximately 50%, significantly higher than analysts' estimates of 35.3%.
Valuation and Profitability Metrics
Super Micro's current valuation metrics indicate a P/E Ratio of 26.66, P/B Ratio of 4.44, and P/S Ratio of 1.27. The EV/EBITDA ratio stands at 21.22, and the ROE is 16.92%. The company's ROIC is 9.63%, indicating a decent return on invested capital. With a net debt to EBITDA ratio of -0.35, Super Micro has a net cash position, providing flexibility for future investments or share buybacks.
Margin Pressures and Future Expectations
The Q4 non-GAAP gross margin was 9.6%, and non-GAAP operating margin was 5.3%. The company expects gross margins to remain similar to Q4 fiscal year '25 levels. Charles Liang expressed optimism about improving gross margins with the adoption of DCBBS, aiming to reach the long-term target of 15% or even 16% to 17%. The company's ability to manage margins will be crucial in sustaining profitability amidst growing competition.