Supermicro reported sales of $5.0 billion for the first quarter of fiscal year 2026, ended September 30, 2025 — down from $5.9 billion a year earlier — primarily due to delays in AI system deliveries.
Despite maintaining its position as a leading provider of AI-driven data center infrastructure, the company’s deep exposure to artificial intelligence projects did not translate into growth during the quarter.
Nearly $1.5 billion in revenue was deferred to the next quarter after customers requested last-minute configuration upgrades to complex GPU-based systems. These changes required additional integration, testing, and validation, which extended build times and postponed revenue recognition.
Supermicro also faced production bottlenecks due to the increasing complexity of next-generation GPU racks and longer lead times for key components such as advanced cooling modules and AI accelerators. While demand for AI infrastructure remains robust, these logistical and supply challenges limited the company’s ability to fulfill all orders within the quarter.
The company’s gross margin narrowed to 9.3 percent, reflecting higher costs tied to system integration and customization for AI deployments. Additionally, the heavy engineering and validation work required for advanced AI projects continues to impact the timing of recognized sales, even as the order backlog expands.
Supermicro reported more than $13 billion in orders for its Nvidia Blackwell Ultra-based GB300 product line. The company expects second-quarter revenue of $10.0 billion to $11.0 billion and raised its annual forecast to $36 billion, up from $33 billion previously.
Supermicro CEO Charles Liang said the company is evolving into a AI and data center infrastructure provider through its Data Center Building Block Solutions (DCBBS), which streamline deployment and lower costs. He added that with a growing order book — including over $13 billion in Nvidia Blackwell Ultra system orders — Supermicro expects revenue of at least $36 billion for fiscal year 2026.
AI GPU platforms accounted for more than 75 percent of first-quarter revenue. Shipment delays and configuration upgrades shifted approximately $1.5 billion to the next quarter, reflecting the complexity of assembling and validating large-scale GPU racks.
To strengthen its position, Supermicro is expanding its Data Center Building Block Solutions (DCBBS) —integrated systems combining servers, storage, cooling, power, and management software designed for rapid AI data center deployment. The company sees DCBBS as a key growth driver as hyperscale and enterprise customers seek faster rollouts and reduced operating costs.
Supermicro is ramping up global production capacity, adding facilities in the United States, Taiwan, the Netherlands, Malaysia, and the Middle East. It aims to produce up to 6,000 racks per month this fiscal year, including 3,000 direct liquid-cooled racks. The company is preparing for next-generation AI platforms based on Nvidia Vera Rubin and AMD Helios chips, while noting growing adoption of edge AI across manufacturing, telecom, and retail sectors.
Rajani Baburajan
