Super Micro posts a record Q1 FY27, but investors keep their enthusiasm in check

Revenue nearly quadrupled and guidance went up, yet cash burn, thin margins and one giant customer are keeping the stock reaction muted Super Micro Computer just posted the kind of quarter most hardware companies only see in pitch decks. Net sales hit $19.9 billion in fiscal Q1 2027, up 298% from $5.0 billion a year earlier. The company reported the results on November 3, 2026. Revenue also jumped 79% sequentially, climbing from $11.1 billion in Q4 FY2026. Profit scaled up even faster than the top line. GAAP net income reached $1.594 billion, or $1.75 in diluted earnings per share. A year ago, those figures were $168 million and $0.26 per share. AI-related solutions drove the bulk of the business, making up 71% of total revenue. That works out to approximately $14.7 billion in AI sales for the quarter alone. Management also leaned into the momentum with guidance. Full-year FY2027 revenue is now expected between $72 billion and $82 billion, up from a prior range of $65 billion to $72 billion. For Q2 FY2027, the company expects net sales of $19.5 billion to $21.5 billion. It projects non-GAAP diluted EPS between $1.66 and $1.90. That Q2 range brackets the Q1 figure, with the low end ...