Super Micro Computer

Refresh delta (since 2026-06-20)

1. Q4 FY2026 results. Net sales $11.1bn vs $10.2bn in Q3 FY26 and $5.8bn in Q4 FY25. GAAP gross margin 17.5% (Q3 FY26: 9.9%; Q4 FY25: 9.5%); non-GAAP gross margin 17.6%. Net income $1,178M ($1.62 per diluted share) vs $483M in Q3 FY26 and $195M in Q4 FY25. Cash flow from operations $747M; capexCapital expenditureMoney spent on long-lived things — buildings, machines, servers — rather than on running costs. and investments $25M. [sec.gov: 8-KForm 8-KA filing for something that happened between reports and matters enough to tell shareholders now. filed 2026-08-11, exhibit 99.1, https://www.sec.gov/Archives/edgar/data/1375365/000137536526000021/exhibit991_20260630.htm; quarter ended 2026-06-30]
2. FY2026. Net sales $39.1bn vs $22.0bn; gross margin 10.8% vs 11.1%; net income $2.2bn ($3.26 per diluted share) vs $1.0bn ($1.68). Cash and cash equivalents $7.5bn and total bank debt and convertible notes $8.7bn at 2026-06-30. [sec.gov: 8-K filed 2026-08-11, exhibit 99.1, same URL as item 1]
3. Orders and outlook. The company reports more than $60bn of new orders in the year and record backlog entering FY2027 (the 2026-07-21 update says new orders in excess of $60bn were received in Q4). Q1 FY2027 outlook given on 2026-08-11: net sales $14.5bn to $15.5bn and GAAP EPS $0.89 to $0.98; FY2027 net sales $65.0bn to $72.0bn. [sec.gov: 8-K filed 2026-08-11, exhibit 99.1, same URL as item 1; 8-K filed 2026-07-21, exhibit 99.1, https://www.sec.gov/Archives/edgar/data/1375365/000137536526000019/fq42026businessupdate.htm]
4. Preliminary Q1 FY2027. On 2026-10-20 the company estimated Q1 FY27 (quarter ended 2026-09-30) revenue of $18.5bn to $19.5bn against guidance of $14.5bn to $15.5bn, and gross margin of 12.0% to 12.5% against guidance of 10.4% to 10.8%, citing AI platform demand and customer and product mix; results are unaudited, and the earnings call is set for 2026-11-03. [sec.gov: 8-K filed 2026-10-20, exhibit 99.1, https://www.sec.gov/Archives/edgar/data/1375365/000137536526000025/smcifirstquarterfy2027busi.htm]
5. Internal control. The 10-KForm 10-KA company’s audited annual report to the US regulator. The most complete thing it publishes. concludes internal control over financial reporting and disclosure controls were not effective at 2026-06-30 because of one remaining material weakness in information technology general controls (user-access monitoring and the operating period of certain controls). It reports that the three material weaknesses reported in the FY2025 10-K were remediated. [sec.gov: 10-K filed 2026-08-31, https://www.sec.gov/Archives/edgar/data/1375365/000137536526000022/smci-20260630.htm]
6. Export-control matter. The 10-K says the U.S. Attorney's Office for the Southern District of New York unsealed an indictment on 2026-03-19 of three individuals associated with the company at the time, including former SVP and director Yih-Shyan (Wally) Liaw; the company is not named as a defendant or alleged co-conspirator, and the three are no longer employed or associated with it. The company has received an SEC subpoena, a grand jury subpoena from the SDNY and BIS inquiries, and is cooperating. An independent investigation (Munger, Tolles & Olson with AlixPartners) found no evidence that current senior management knew of the alleged diversion and no basis to conclude prior financial statements could not be relied upon. [sec.gov: 10-K filed 2026-08-31, same URL as item 5]
7. Customer concentration. One customer accounted for 10% or more of net sales in FY2026, four in FY2025 and one in FY2024. [sec.gov: 10-K filed 2026-08-31, same URL as item 5]
8. Shares and preferred. 656,965,384 shares of common stock outstanding at 2026-07-31. The board declared the initial dividend of $14.7778 per share ($0.73889 per depositary share) on the 7.00% Series A Mandatory Convertible Preferred Stock, payable 2026-09-01. [sec.gov: 10-K filed 2026-08-31, same URL as item 5; 8-K filed 2026-08-05, https://www.sec.gov/Archives/edgar/data/1375365/000137536526000020/smci-20260805.htm]
9. Management and board. On 2026-10-14 the board appointed Mark Long (former Western Digital CFO) as Chief Financial Officer, replacing David Weigand, with a base salary of $725,000 and a $500,000 sign-on bonus. [sec.gov: 8-K filed 2026-10-15, https://www.sec.gov/Archives/edgar/data/1375365/000137536526000024/smci-20261014.htm] On 2026-10-08 the board appointed Shesha Krishnapura (former Intel IT CTO) as an independent director effective 2026-10-09; director Judy Lin, chair of the nominating and corporate governance committee, retires from the board effective the same day. [sec.gov: 8-K filed 2026-10-08, https://www.sec.gov/Archives/edgar/data/1375365/000137536526000023/smci-20261007.htm]
10. Where the new filings meet the carried view (stated as fact, no line changed). The carried seed catalyst "FY26 10-K ICFR opinion — material weaknesses remediated or not" meets item 5: management reports ineffective controls because of one remaining ITGC weakness, with three earlier ones remediated. The carried catalyst "Q4 FY26 print — margin sustainability ≥10% + revenue catch-up on deferred" meets item 1 (gross margin 17.5%, net sales $11.1bn) and item 4 (preliminary Q1 gross margin 12.0% to 12.5%). The carried bear case cites "10% GM" and "four-customer ≈75% concentration": item 2 gives FY26 gross margin 10.8% and item 7 reports one 10%-plus customer in FY2026. The carried "co-founder/director under federal export-control indictment" meets item 6: the 10-K calls Mr. Liaw a former SVP and director and says the three indicted individuals are no longer employed or associated with the company. The carried catalyst on the "DOJ/SEC resolution of export-control matter (entity charged vs. individuals-only)" is not resolved in the filings read (item 6). The carried catalyst "$7B equity/mandatory-convertible raise digestion" meets item 8 only as to the preferred dividend. The carried seed's price figures ($30.66) and targets rest on market data this delta does not refresh.

What held

• The company has an unremediated material weakness in internal control (item 5). [sec.gov: 10-K filed 2026-08-31]
• The export-control investigations remain open, with subpoenas outstanding (item 6). [sec.gov: 10-K filed 2026-08-31]
• AI demand remains very strong on the company's own numbers (items 3, 4). [sec.gov: 8-K filed 2026-08-11, exhibit 99.1; 8-K filed 2026-10-20, exhibit 99.1]