Super Micro Forecasts Up to $72 Billion in FY2027 Sales as AI Demand Accelerates

Super Micro Computer expects fiscal 2027 revenue to reach as much as $72 billion, setting a new growth target after the server maker nearly doubled quarterly sales and posted a sharp recovery in gross margin.

The company forecast full-year net sales of $65 billion to $72 billion for the year ending June 2027. That compares with preliminary fiscal 2026 revenue of $39.1 billion, which itself rose from $22.0 billion a year earlier. At the top of the new range, Super Micro would add almost $33 billion of annual sales in a single year.

The outlook puts demand for large-scale AI infrastructure at the center of Super Micro’s next phase. In its earnings release, the company said it had generated more than $60 billion in new orders and entered fiscal 2027 with record backlog. A July business update specified that more than $60 billion of new orders were received during the fourth quarter. Chief Executive Charles Liang said demand was accelerating as the company added several hundred enterprise and other customers and expanded adoption of its Data Center Building Block Solutions architecture.

The $72 billion forecast resets Super Micro's growth bar

Super Micro’s fiscal fourth-quarter net sales were $11.1 billion, up from $10.2 billion in the prior quarter and $5.8 billion a year earlier. The year-over-year increase was about 93%, making the quarter another large step-up in revenue as customers continued to build infrastructure for artificial intelligence workloads.

The company’s fiscal 2027 sales range implies roughly 66% to 84% growth from the preliminary $39.1 billion reported for fiscal 2026. The first-quarter outlook also points to another increase in scale: Super Micro expects sales of $14.5 billion to $15.5 billion for the quarter ending September 30, 2026.

Those numbers are well above the level Wall Street had been modeling before the release. Reuters, citing LSEG data, reported that analysts on average had expected about $52.5 billion of fiscal 2027 revenue. The same report said Super Micro’s fourth-quarter revenue came in slightly below the $11.55 billion analyst estimate, even as the forward guidance exceeded expectations. Shares rose 7% in extended trading after the results, Reuters reported.

The mix of a small quarterly revenue miss and a much stronger annual outlook shifts attention away from one quarter’s timing and toward the size of the order pipeline. Reuters reported that Liang attributed the fourth-quarter shortfall to short-term customer delays involving power, cooling and networking. Those are infrastructure dependencies that can move revenue between quarters even when the underlying server order remains intact.

The earnings release also shows how quickly the company’s scale has changed. Full-year revenue rose about 78% in fiscal 2026, and the upper end of the new guidance would put Super Micro at more than three times its fiscal 2025 revenue within two years. That pace makes execution, customer concentration and the timing of large deployments increasingly important to the investment case.

Gross margin rebounds after a year of compression

The other major change in the quarter was profitability. Super Micro reported a fourth-quarter GAAP gross margin of 17.5%, up from 9.9% in the third quarter and 9.5% in the same quarter a year earlier. Non-GAAP gross margin was 17.6%.

That rebound is important because margin compression had become one of the main questions surrounding the company’s rapid AI-driven expansion. Super Micro’s gross margin was 9.3% in the first quarter of fiscal 2026 and fell to 6.3% in the second quarter before recovering to 9.9% in the third quarter. In July, the company had already signaled that fourth-quarter gross margin was likely to be between 15% and 17%, citing a more favorable customer and product mix. The final preliminary figure came in above that range.

The improvement flowed through the income statement. Fourth-quarter gross profit rose to $1.94 billion from $544 million a year earlier, while operating income increased to $1.49 billion from $228 million. Net income was $1.18 billion, compared with $195 million in the prior-year quarter, and diluted earnings per share rose to $1.62 from $0.31.

For the full year, however, the margin picture still shows the effect of earlier compression. Fiscal 2026 gross margin was 10.8%, slightly below 11.1% in fiscal 2025. That means the fourth-quarter rebound was substantial, but investors will still need to see whether the company can sustain higher margins while pushing revenue toward the new $65 billion to $72 billion range.

Management has tied the improvement to a richer enterprise mix and broader use of its integrated data-center architecture. Reuters also reported that Chief Financial Officer David Weigand said the sequential gain reflected a better-than-anticipated customer and product mix, including the deferral of several contracts into the first quarter. If that mix persists, higher revenue would not necessarily have to come with the same degree of margin pressure seen earlier in fiscal 2026.

Scale brings working-capital and execution risks

The rapid expansion is also visible on Super Micro’s balance sheet and cash-flow statement. The company ended June with $7.5 billion in cash and cash equivalents and $8.7 billion of bank debt and convertible notes. Inventories stood at $12.9 billion, up from $4.7 billion a year earlier, while accounts receivable increased to $6.1 billion from $2.2 billion.

Super Micro generated $747 million of operating cash flow in the fourth quarter, but full-year operating cash flow was negative $6.81 billion. The cash-flow statement shows large uses of cash from inventory and receivables as the company scaled. Financing activities provided $9.48 billion during the year, including proceeds from lines of credit and term loans, common stock issuance and a mandatory convertible preferred stock issuance.

That does not negate the growth in orders, but it makes the quality and timing of that growth important. A company expanding toward tens of billions of dollars in additional annual sales must fund components, inventory and customer receivables before all of that revenue is converted into cash. The larger the deployment, the more sensitive quarterly results can become to project schedules, customer acceptance and infrastructure readiness.

The company also cautioned that its fiscal 2026 numbers remain preliminary and unaudited. Super Micro said its closing procedures were not complete and that final results could differ from the figures in the release. It separately disclosed that its board is conducting an independent review of certain transactions in connection with export-control issues, and said the outcome could affect forecasts, preliminary results and prior-period results.

For now, the central number is the fiscal 2027 sales range. Super Micro is telling investors that the AI infrastructure buildout can support another year of very rapid expansion, with a first-quarter revenue target already above the level it reached in the June quarter. The stronger gross margin gives that forecast more weight than a revenue-only story would have, but the next test will be whether the company can convert its record order pipeline into sales while holding onto the profitability gains and managing the cash demands of operating at a much larger scale.