Super Micro Computer, Inc.

Fiscal Q3 FY26 revenue was $10.2 billion, up 123% year over year and down 19% quarter over quarter. Non-GAAP gross margin was 10.1%, up from 6.4% in Q2. GAAP diluted EPS was $0.72 and non-GAAP diluted EPS was $0.84. Non-GAAP operating margin was 7.3% versus 4.5% in Q2. Cash flow used in operations was $6.6 billion, capex was $80 million, and quarter-end cash was $1.3 billion; net debt was $7.5 billion. For Q4 FY26, management guided to revenue of $11 billion to $12.5 billion, GAAP EPS of $0.53 to $0.67, non-GAAP EPS of $0.65 to $0.79, and gross margin of 8.2% to 8.4%. For full-year FY26, revenue guidance was raised to $38.9 billion to $40.4 billion; earlier in prepared remarks Charles Liang said the company targets $40 billion for the year.

Charles Liang framed the quarter as a period of strong business value growth, emphasizing AI demand, record backlog, and the company’s shift toward a total data-center-solutions model. He highlighted DCBBS, software, services, liquid cooling, and faster time-to-online as the strategic pillars of the business, and said the company is expanding capacity in the U.S. and abroad to support demand. His tone was confident and defensive: he stressed that the company is not a target of the government investigation, said it has zero tolerance for violations, and repeated that he feels bullish about growth in AI and data centers.

David Weigand said revenue strength was partly offset by customer readiness delays and supply constraints, but he emphasized that AI infrastructure demand remains strong and that orders/backlog are robust. He cited 10.1% non-GAAP gross margin, 7.3% non-GAAP operating margin, $393 million of GAAP operating expenses, $278 million of non-GAAP operating expenses, and a $15 million net other expense. He also detailed working capital pressure: operating cash flow used was $6.6 billion, inventory ended at $11.1 billion, cash was $1.3 billion, and net debt rose to $7.5 billion; he said the company has added a $1.8 billion Taiwan revolver and guided Q4 capex to $30 million to $50 million.

Analysts focused on the DOJ-related export investigation, possible restatement risk, and whether customer relationships or GPU allocation with NVIDIA could be affected. Management said, based on what it knows now, no one beyond the named individuals was involved, it does not believe a restatement will be needed, and it plans to file the 10-Q subject to review. On customer and supplier concerns, Charles Liang said customers appear solid and the company’s vendor relationships remain strong, while David Weigand said there has been no change in NVIDIA allocation. Analysts also pressed on margin sustainability and DCBBS; management said DCBBS margins are often above 20% and that broader enterprise and total-solution mix should support margins.