Super Micro’s stock surged 18% in extended trading on May 5, 2026, despite reporting mixed earnings results. The company’s strong guidance and margin recovery drove the increase.
The earnings per share for Q3 reached 84 cents, surpassing the expected 62 cents. However, revenue for the quarter was $10.24 billion, falling short of the anticipated $12.33 billion.
Year-over-year revenue increased by 123%, indicating robust growth. Super Micro reported a gross margin of 9.9%, up from 6.3%% in Q2 and 9.6%% in the same quarter last year.
The net income for Q3 was $483 million, a significant rise from $109 million in Q3 of the previous year. The company expects Q4 earnings per share to fall between 65 cents and 79 cents, with revenue projected between $11 billion and $12.5 billion.
Super Micro has recently expanded its manufacturing facilities in Silicon Valley to meet rising demand for AI infrastructure and enterprise solutions. Charles Liang, CEO, noted that customer readiness has delayed some revenue recognition during the quarter.
Citi and Mizuho both raised their price targets for SMCI stock to $31 and $30 respectively, while maintaining a ‘Neutral’ rating. Despite this surge, Super Micro’s stock remains down by 5% year-to-date and 13%% over the past 12 months.
The company is undergoing an independent review related to export-control issues, but the outcome of this review is still unclear.
