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Supermicro (SMCI) explained: how it makes money, how it's doing, what protects it

A plain-English guide to a fast-growing maker of servers and AI racks. See what it sells, where the money goes, who it competes with and what could trip it up.

⚡What does Supermicro do, in 30 seconds?

Supermicro designs and builds servers and storage systems, including AI servers cooled by air or liquid, plus parts such as server boards and power supplies 4. It sold $39.1bn ✓ in FY2026, up 77.8% ✓ on the year before. Products shipped to the United States made up 71% ✓ of those sales.

Revenue, FY2026
$39.1bn✓
Profit, FY2026
$2.2bn✓
Sales growth, 4 quarters to 30 Jun 2026
77.8%✓
Net cash (cash and investments minus borrowings; leases and stakes in other companies not counted), 30 Jun 2026
$3.5bn✓
Headquarters
San Jose, California 20
Founded
September 1993, by Charles Liang 24
Employees
Over 7,000 at 30 June 2026, about 3,500 of them in research and development 20
CEO
Charles Liang, the founder, in charge since 1993 24
Co-founder
Sara Liu, his wife, a senior vice president and director 24
Customers
Over 1,000 in over 100 countries in fiscal 2026 3
Fiscal year ends
30 June 20

📱What does Supermicro sell?

Supermicro reports one business and splits its sales by where products are shipped: the United States, Asia, Europe and other countries 1. Across its business, it sells servers and storage systems, AI servers for training and running AI models, and parts such as chassis 4. It also sells complete building blocks for AI data centers, from racks and liquid cooling to power and software 3.

🇺🇸

United States

Servers, storage and AI racks shipped to customers in the US 1. The US brought in $27.7bn ✓ in FY2026. That was 71% ✓ of sales, up from 59% ✓ in FY2025. Supermicro makes most of its systems at its San Jose headquarters 3.

👥 Supermicro does not split its customers by region. Across the company, large cloud, enterprise and OEM customers buy mainly through its own sales force, and resellers serve other buyers 4.

🌏

Asia

Systems shipped to customers in Asia 1. Asia brought in $6.1bn ✓ in FY2026, up from $5.5bn ✓ in FY2025. Its share of sales fell to 16% ✓, from 25% ✓. Thailand alone took 10.9% of Supermicro's revenue in fiscal 2025, but no country except the US reached 10% in fiscal 2026 1.

👥 Supermicro does not split its customers by region. Across the company, its customers include enterprise data centers and cloud, AI, 5G and edge computing businesses 3. Separately, it assembles and tests systems in Taiwan and Malaysia 3.

🇪🇺

Europe

Systems shipped to customers in Europe 1. Europe brought in $2.7bn ✓ in FY2026, the same as the $2.7bn ✓ of FY2025. Its share of sales fell to 7% ✓, from 12% ✓. Supermicro says it no longer sells to Russia, and last recorded revenue from Russia-based customers in February 2022 5.

👥 Supermicro does not split its customers by region. Separately, it assembles and tests systems in the Netherlands 3.

🌍

Other countries

Systems shipped to customers outside the US, Asia and Europe 1. This group grew the most, to $2.6bn ✓ in FY2026 from $0.7bn ✓ in FY2025. That lifted its share to 7% ✓, from 3% ✓.

👥 Supermicro does not split its customers by region. Across the whole company, it sold to customers in over 100 countries in fiscal 2026 3.

How the mix has shifted

Revenue mix by regionFY2024United States: $10.2bn (68%)United States 68%Asia: $2.9bn (19%)Asia 19%Europe: $1.3bn (9%)Europe 9%Other countries: $0.6bn (4%)FY2025United States: $13.1bn (59%)United States 59%Asia: $5.5bn (25%)Asia 25%Europe: $2.7bn (12%)Europe 12%Other countries: $0.7bn (3%)FY2026United States: $27.7bn (71%)United States 71%Asia: $6.1bn (16%)Asia 16%Europe: $2.7bn (7%)Other countries: $2.6bn (7%)
Revenue mix by regionFY24United States: $10.2bn (68%)68%Asia: $2.9bn (19%)19%Europe: $1.3bn (9%)Other countries: $0.6bn (4%)FY25United States: $13.1bn (59%)59%Asia: $5.5bn (25%)25%Europe: $2.7bn (12%)12%Other countries: $0.7bn (3%)FY26United States: $27.7bn (71%)71%Asia: $6.1bn (16%)16%Europe: $2.7bn (7%)Other countries: $2.6bn (7%)United StatesAsiaEuropeOther countries
Share of revenue by region, by fiscal year. Source: Super Micro Computer, Inc. 10-K filed 2026-08-31.

💸How does Supermicro make money?

Follow the money from left to rightfrom top to bottom: what customers pay for, what it costs to make, and what is left as profit.

Money map FY2026: how revenue turns into profitUnited States → Revenue: $27.7bnAsia → Revenue: $6.1bnEurope → Revenue: $2.7bnOther countries → Revenue: $2.6bnRevenue → Gross profit: $4.2bnRevenue → Cost of sales: $34.8bnGross profit → Operating profit: $2.8bnGross profit → R&D: $0.8bnGross profit → Selling & admin: $0.7bnOperating profit → Net income: $2.2bnOperating profit → Income tax: $0.6bnOther income → Net income: $0.0bnUnited States$27.7bn · 71%Asia$6.1bn · 16%Europe$2.7bn · 7%Other countries$2.6bn · 7%Revenue$39.1bnGross profit$4.2bn · 11%Cost of sales$34.8bn · 89%Operating profit$2.8bn · 7%R&D$0.8bn · 2%Selling & admin$0.7bn · 2%Net income$2.2bn · 6%Income tax$0.6bn · 1%Other income$0.0bn · <1%
Money map FY2026: how revenue turns into profitUnited States: $27.7bnAsia: $6.1bnEurope: $2.7bnOther countries: $2.6bnUnited States$27.7bn · 71%Asia$6.1bn · 16%Europe$2.7bn · 7%Other countries$2.6bn · 7%Revenue: $39.1bnRevenue$39.1bn · 100%Gross profit: $4.2bnCost of sales: $34.8bnGross profit$4.2bn · 11%Cost of sales$34.8bn · 89%Operating profit: $2.8bnR&D: $0.8bnSelling & admin: $0.7bnOperating profit$2.8bn · 7%R&D$0.8bn · 2%Selling & admin$0.7bn · 2%Net income: $2.2bnIncome tax: $0.6bnNet income$2.2bn · 6%Income tax$0.6bn · 1%
Money map (a Sankey diagram): band widths are to scale. Hover a band for the amount. Source: Super Micro Computer, Inc. 10-K filings.

Supermicro sold $39.1bn ✓ of servers, storage and parts in FY2026. Buying the parts and building those systems cost $34.8bn ✓. What is left is gross profit, the money kept after paying for what was sold. That came to $4.2bn ✓.

Next come the costs of running the company. Research and development took $0.8bn ✓, and sales, marketing and admin took $0.7bn ✓. That left operating profit, the profit from the main business, of $2.8bn ✓. Tax took $0.6bn ✓, and net income was $2.2bn ✓. Put simply, out of every hundred dollars of sales, about $89 ✓ went on the systems themselves. Supermicro kept about $6 ✓ as profit.

Out of every $100 customers paid in FY2026…

Making the products and services $89Research and development $2Selling and admin $2Income tax $1Profit kept $6
💡
Flip between the years to see where the boxes went. Shipments to the US made up 68% ✓ of sales in FY2024, 59% ✓ in FY2025 and 71% ✓ in FY2026. Supermicro says its regional mix swung sharply in fiscal 2026, partly because of large, concentrated AI data-center deployments 4.

⏱️ Supermicro by the clock

Spread the FY2026 totals evenly over its 365 days and you get this. Source: Super Micro Computer, Inc. 10-K [6].

🛒
$107m
in sales every day
⏱️
$71
of profit every second
🔬
$2m
on research every day

📈How is Supermicro doing?

Supermicro has grown very fast, and fastest in the last three years. From FY2016 to FY2026, sales grew 33.2% ✓ a year on average. Sales rose in 9 ✓ of those 10 ✓ years. Growth was 110.4% ✓ in FY2024, 46.6% ✓ in FY2025 and 77.8% ✓ in FY2026. Supermicro says FY2026 growth came from customers' data-center build-outs, including large wins from a few customers 16.

Each sale earns a thin profit. Gross margin, the share of sales kept after the cost of the systems, fell from 14.9% ✓ in FY2016 to 10.8% ✓ in FY2026. Supermicro puts the latest drop down mainly to competitive pricing to gain market share, product and customer mix, and higher factory costs 15. Operating margin was 7.1% ✓ in FY2026. Free cash flow was -$7.0bn ✓, as the business used cash rather than making it.

The fourth quarter of FY2026 looked better. Sales were $11.1 billion and gross margin was 17.5%, up from 9.5% a year earlier 19. On 20 October 2026, Supermicro gave a preliminary, unaudited estimate of $18.5 billion to $19.5 billion of revenue for the first quarter of fiscal 2027 30. Supermicro plans to review the quarter's results on a call on 3 November 2026 30.

📝 The report card

Supermicro earns top marks for growth and a good mark for its balance sheet, but low marks for profit, cash and steadiness. Every company is graded on the same fixed scale, so an A means the same thing on every page. The strip shows where Supermicro (orange) and its 2 peers land; further right is better.

A

Growth

Sales growth per year, last 3 fiscal years
76.3% · peer median 5.0%
#1 of 3 in the peer group
A ≥ 15.0%B ≥ 10.0%C ≥ 5.0%D ≥ 0.0%F below 0.0%

Supermicro's sales grew 76.3% ✓ a year over its last three fiscal years, which earns an A ✓ on the fixed scale. That is far ahead of HPE at 6.4% ✓, a C ✓, and Dell at 3.5% ✓, a D ✓.

Why this measure? (higher is better)

Growing sales is the engine of a business. Mature giants rarely grow fast, so 5% a year already earns a C.

D

Profitability

Operating margin, last 3 years combined
6.9% · peer median 5.4%
#1 of 3 in the peer group
A ≥ 30.0%B ≥ 20.0%C ≥ 10.0%D ≥ 5.0%F below 5.0%

Over the last three years combined, Supermicro kept 6.9% ✓ of sales as operating profit, which earns a D ✓. That still ranks 1 ✓ of 3 ✓, just ahead of Dell at 6.7% ✓, also a D ✓.

Why this measure? (higher is better)

Operating margin is the share of each sales dollar left after running the business. Software and platforms often clear 30%; hardware makers usually sit below 10%.

F

Cash generation

Free cash flow as a share of sales, last 3 years combined
-10.6% · peer median 5.0%
#3 of 3 in the peer group
A ≥ 20.0%B ≥ 15.0%C ≥ 10.0%D ≥ 5.0%F below 5.0%

Over the last three years combined, Supermicro's free cash flow was -10.6% ✓ of sales, which earns an F ✓. Free cash flow was -$2.6bn ✓ in FY2024, $1.5bn ✓ in FY2025 and -$7.0bn ✓ in FY2026. Dell turned 5.5% ✓ of sales into free cash flow, a D ✓.

Why this measure? (higher is better)

Free cash flow is the cash left after paying for factories, data centres and equipment. It funds dividends, buybacks and new bets.

B

Balance sheet

Net cash (cash and investments minus borrowings; leases and stakes in other companies not counted) as a share of a year's sales
8.9% · peer median -33.0%
#1 of 3 in the peer group
A ≥ 20.0%B ≥ 5.0%C ≥ -10.0%D ≥ -30.0%F below -30.0%

At the end of FY2026, Supermicro's cash and investments minus its borrowings (leases not counted) came to 8.9% ✓ of a year's sales, a B ✓. Net cash was $3.5bn ✓ at 30 June 2026. Both peers have more borrowings than cash and investments, such as HPE at -48.4% ✓, an F ✓.

Why this measure? (higher is better)

More cash than debt gives a company room to ride out bad years. Some debt is normal; a lot of it makes a company fragile.

F

Steadiness

How much yearly sales growth swings (standard deviation, up to 10 years)
35.9% · peer median 9.3%
#3 of 3 in the peer group
A ≤ 5.0%B ≤ 8.0%C ≤ 12.0%D ≤ 18.0%F above 18.0%

Supermicro's yearly growth swings a lot, with a standard deviation of 35.9% ✓, which earns an F ✓. Sales growth ran from -4.6% ✓ in FY2020 to 110.4% ✓ in FY2024. HPE is far steadier at 6.4% ✓, a B ✓.

Why this measure? (lower is better)

Steady growers are easier to plan around. Big swings mean sales depend on product cycles, the economy or one-off events.

🧑‍🏫 How the grades work
  1. Same scale for everyone. Each measure has fixed cut-offs (shown under each strip). Clear the A line and you get an A, whatever your peers do.
  2. Three years together. Profitability and cash generation add up the last three fiscal years before dividing, so one unusual year counts for less than it would on its own (a year much bigger than the others still weighs most).
  3. Peers for context. The rank shows how Supermicro compares with the group. Companies within 0.1 percentage point share a rank.
  4. Same source. Every company's figures come from its own latest annual report (10-K), so fiscal years end in different months.
  5. Judgement, openly stated. The cut-offs are QuantVantage.ai's view of what good looks like for a large, established company. They are not a forecast or a recommendation.

11 years at a glance

Revenue
$39.1bn
FY2026
Revenue by fiscal yearFY2016: $2.2bnFY2017: $2.5bnFY2018: $3.4bnFY2019: $3.5bnFY2020: $3.3bnFY2021: $3.6bnFY2022: $5.2bnFY2023: $7.1bnFY2024: $15.0bnFY2025: $22.0bnFY2026: $39.1bnFY2016FY2026
Operating margin
7.1%
FY2026
Operating marginFY2016FY2026
Free cash flow
-$7.0bn
FY2026
Free cash flow by fiscal yearFY2016: $0.1bnFY2017: -$0.1bnFY2018: $0.1bnFY2019: $0.2bnFY2020: -$0.1bnFY2021: $0.1bnFY2022: -$0.5bnFY2023: $0.6bnFY2024: -$2.6bnFY2025: $1.5bnFY2026: -$7.0bnFY2016FY2026
Net cash
$3.5bn
end of FY2026
Net cash by fiscal yearFY2016: $0.1bnFY2017: -$0.1bnFY2018: $0.0bnFY2019: $0.2bnFY2020: $0.2bnFY2021: $0.1bnFY2022: -$0.3bnFY2023: $0.2bnFY2024: $1.2bnFY2025: $5.1bnFY2026: $3.5bnFY2016FY2026

Where the cash goes

Over the 11 fiscal years from FY2016 to FY2026, Supermicro's free cash flow added up to -$7.7bn ✓. In FY2026 alone, cash flow from operations was -$6.8bn ✓, while it spent only $0.2bn ✓ on equipment. At 30 June 2026, inventory stood at $12.9bn ✓. On 9 June 2026, Supermicro announced about $7.0 billion of new equity and equity-linked financing to buy components for new orders 31.

Free cash flow vs cash returned to shareholders$0bnFY2017 free cash flow -$0.1bnFY2017 buybacks + dividends $0.0bnFY17FY2018 free cash flow $0.1bnFY2018 buybacks + dividends $0.0bnFY18FY2019 free cash flow $0.2bnFY2019 buybacks + dividends $0.0bnFY19FY2020 free cash flow -$0.1bnFY2020 buybacks + dividends $0.0bnFY20FY2021 free cash flow $0.1bnFY2021 buybacks + dividends $0.0bnFY21FY2022 free cash flow -$0.5bnFY2022 buybacks + dividends $0.0bnFY22FY2023 free cash flow $0.6bnFY2023 buybacks + dividends $0.0bnFY23FY2024 free cash flow -$2.6bnFY2024 buybacks + dividends $0.0bnFY24FY2025 free cash flow $1.5bnFY2025 buybacks + dividends $0.0bnFY25FY2026 free cash flow -$7.0bnFY2026 buybacks + dividends $0.0bnFY26
Free cash flow vs cash returned to shareholders$0bnFY2021 free cash flow $0.1bnFY2021 buybacks + dividends $0.0bnFY21FY2022 free cash flow -$0.5bnFY2022 buybacks + dividends $0.0bnFY22FY2023 free cash flow $0.6bnFY2023 buybacks + dividends $0.0bnFY23FY2024 free cash flow -$2.6bnFY2024 buybacks + dividends $0.0bnFY24FY2025 free cash flow $1.5bnFY2025 buybacks + dividends $0.0bnFY25FY2026 free cash flow -$7.0bnFY2026 buybacks + dividends $0.0bnFY26
■ Free cash flow   ■ Buybacks + dividends. Source: Super Micro Computer, Inc. 10-K filings.

🧮Ratios 101: what are Supermicro's key financial ratios?

Ratios turn Supermicro's big numbers into easy comparisons. They show a business that sells a lot, keeps a thin slice of each sale and holds a lot of stock. A ratio divides one number by another so companies of any size can be compared. Each card shows the formula with Supermicro's real FY2026 numbers, the peer median and the trend.

💰 Profitability: how much of each sale is kept?

Higher is better

Gross margin

10.8%
Gross profit$4.2bn$39.1bnSales=10.8%

What is left from each sale after paying to make the product or deliver the service.

👉 Supermicro keeps 10.8% ✓ of sales as gross profit, down from 14.9% ✓ in FY2016 and far below the 25.1% ✓ peer median.

📏 Rule of thumb: Above 40% usually signals pricing power or a big software or services mix.

Peer median 25.1% (2 peers)FY2016 14.9%
Gross margin by fiscal yearFY2016FY2026
Higher is better

Operating margin

7.1%
Operating profit$2.8bn$39.1bnSales=7.1%

What is left after also paying for research, marketing and running the company.

👉 Its 7.1% ✓ beats the 3.0% ✓ peer median and its own 4.8% ✓ of FY2016, and is about level with Dell's 7.2% ✓.

📏 Rule of thumb: Above 20% is strong for a large company.

Peer median 3.0% (2 peers)FY2016 4.8%
Operating margin by fiscal yearFY2016FY2026
Higher is better

Net margin

5.7%
Net income$2.2bn$39.1bnSales=5.7%

The bottom line: profit after interest and taxes, per dollar of sales.

👉 Supermicro keeps 5.7% ✓ of sales as final profit, up from 3.2% ✓ in FY2016 and above the 2.7% ✓ peer median.

📏 Rule of thumb: Above 15% is strong; one-off tax items can move it in a single year.

Peer median 2.7% (2 peers)FY2016 3.2%
Net margin by fiscal yearFY2016FY2026
It depends

Return on equity (ROE)

15.4%
Net income$2.2bn$14.5bnShareholders' equity=15.4%

Profit earned for each dollar that shareholders have left in the company.

👉 ROE of 15.4% ✓ is up from 10.3% ✓ in FY2016 and far above HPE's 0.2% ✓. Dell has no figure here.

📏 Rule of thumb: Around 15% or more is good, but buybacks shrink equity and can make ROE look huge.

Peer median 0.2% (1 peer)FY2016 10.3%
Return on equity (ROE) by fiscal yearFY2016FY2026

⚙️ Efficiency: how hard do the assets work?

Higher is better

Return on assets (ROA)

7.4%
Net income$2.2bn$29.9bnTotal assets=7.4%

Profit earned from everything the company owns, however it was paid for.

👉 ROA of 7.4% ✓ is up from 6.0% ✓ in FY2016 and above the 3.0% ✓ peer median.

📏 Rule of thumb: Above 10% is strong; banks and factories usually earn less.

Peer median 3.0% (2 peers)FY2016 6.0%
Return on assets (ROA) by fiscal yearFY2016FY2026
Higher is better

Asset turnover

1.3x
Sales$39.1bn$29.9bnTotal assets=1.3x

Dollars of sales squeezed out of each dollar of assets.

👉 Supermicro's sales are 1.3x ✓ the value of everything it owns, above the 0.8x ✓ peer median but down from 1.9x ✓ in FY2016.

📏 Rule of thumb: Retailers often top 2x; asset-heavy businesses can sit below 0.5x.

Peer median 0.8x (2 peers)FY2016 1.9x
Asset turnover by fiscal yearFY2016FY2026
Lower is better

Inventory days

135 days
Inventory$12.9bn$34.8bnCost of sales× 365=135 days

How many days of products sit in warehouses before they are sold.

👉 Supermicro holds 135 ✓ days of stock, up from 100 ✓ in FY2016 and about double the 69 ✓ peer median. Dell holds just 42 ✓.

📏 Rule of thumb: Fewer days means less cash tied up and less risk of products going stale.

Peer median 69 days (2 peers)FY2016 100 days
Inventory days by fiscal yearFY2016FY2026

🛟 Safety: could it survive a bad year?

It depends

Current ratio

3.9x
Current assets$27.7bn$7.2bnCurrent liabilities=3.9x

Can short-term assets (cash, money owed by customers, stock) pay the bills due within a year?

👉 At 3.9x ✓, Supermicro had $27.7bn ✓ of current assets against $7.2bn ✓ of bills due within a year, far above the 1.0x ✓ peer median.

📏 Rule of thumb: Above 1.0x is the classic comfort line, but cash-rich giants can run below it on purpose.

Peer median 1.0x (2 peers)FY2016 2.3x
Current ratio by fiscal yearFY2016FY2026
Lower is better

Debt to equity

0.3x
Total debt$4.1bn$14.5bnShareholders' equity=0.3x

How much the company has borrowed for each dollar shareholders have in it.

👉 Supermicro's 0.3x ✓ is up from 0.1x ✓ in FY2016 but below HPE's 0.9x ✓. Dell has no figure here.

📏 Rule of thumb: Below 1.0x is conservative. Like ROE, it can rise when buybacks shrink equity, even if debt has not changed.

Peer median 0.9x (1 peer)FY2016 0.1x
Debt to equity by fiscal yearFY2016FY2026
Higher is better

Interest cover

14.2x
Operating profit$2.8bn$0.2bnInterest expense=14.2x

How many times over operating profit could pay the year's interest bill.

👉 Operating profit was 14.2x ✓ interest costs, well above the 2.4x ✓ peer median, though down from 67.4x ✓ in FY2016.

📏 Rule of thumb: Above 5x is comfortable; below 2x is a warning sign.

Peer median 2.4x (2 peers)FY2016 67.4x
Interest cover by fiscal yearFY2016FY2026

💵 Cash and owners: where does the money end up?

Higher is better

Cash conversion

-3.1x
Free cash flow-$7.0bn$2.2bnNet income=-3.1x

Does reported profit turn into real cash? Free cash flow is operating cash minus capital spending.

👉 At -3.1x ✓, Supermicro's free cash flow was negative while its profit was positive. Dell turned profit into cash at 1.4x ✓.

📏 Rule of thumb: Near or above 1.0x means profits are backed by cash.

Peer median 6.2x (2 peers)FY2016 1.0x
Cash conversion by fiscal yearFY2016FY2026
It depends

R&D intensity

2.0%
R&D$0.8bn$39.1bnSales=2.0%

How much of each sales dollar goes into inventing future products.

👉 Supermicro spends 2.0% ✓ of sales on R&D, down from 5.6% ✓ in FY2016 and below the 5.1% ✓ peer median, as sales grew faster than research spending.

📏 Rule of thumb: Tech companies often spend 10% to 20%; more is not always better if it does not pay off.

Peer median 5.1% (2 peers)FY2016 5.6%
R&D intensity by fiscal yearFY2016FY2026
Lower is better

Stock pay

1.1%
Share-based pay$0.4bn$39.1bnSales=1.1%

Pay given to staff in shares instead of cash. It is a real cost to owners because it adds shares.

👉 Stock pay is 1.1% ✓ of sales, close to the 1.3% ✓ peer median and up from 0.8% ✓ in FY2016.

📏 Rule of thumb: Under 5% of sales is modest for a tech company.

Peer median 1.3% (2 peers)FY2016 0.8%
Stock pay by fiscal yearFY2016FY2026
It depends

Shareholder payout

0.0%
Dividends + buybacks$0.0bn$2.2bnNet income=0.0%

How much of the year's profit was handed back to owners.

👉 Supermicro returned 0.0% ✓ of FY2026 profit to shareholders, against 125.9% ✓ at Dell.

📏 Rule of thumb: Above 100% means it returned more than it earned, using cash savings or debt.

Peer median 840.1% (2 peers)FY2016 0.0%
Shareholder payout by fiscal yearFY2016FY2026

Ratios use fiscal-year-end balance sheet values. Inputs are shown rounded, so dividing them can differ from the result in the last digit. A peer median leaves out peers that do not report the inputs, or where the ratio means nothing (for example, negative shareholders' equity). Rules of thumb are general guides from QuantVantage.ai, not hard limits. No share-price ratios (like price-to-earnings) are shown on this page.

🥊Who are Supermicro's competitors?

Supermicro names Cisco, Dell, Hewlett Packard Enterprise and Lenovo as principal competitors, plus the contract makers Foxconn, Quanta Computer and Wiwynn 13. Dell and HPE both sell data-center and AI servers 910 1112.

Peer map: growth vs profitability, bubble size = revenue0%5%10%15%20%25%30%35%40%45%50%55%60%65%70%75%80%0%10%Sales growth per year, 3 years →Operating margin →Dell Technologies: revenue $113.5bn, growth 3.5%/yr, operating margin 7.2%DELLSuper Micro Computer: revenue $39.1bn, growth 76.3%/yr, operating margin 7.1%SMCIHewlett Packard Enterprise: revenue $34.3bn, growth 6.4%/yr, operating margin -1.3%HPE
Peer map: growth vs profitability, bubble size = revenue0%5%10%15%20%25%30%35%40%45%50%55%60%65%70%75%80%0%10%Sales growth per year, 3 years →Operating margin →Dell Technologies: revenue $113.5bn, growth 3.5%/yr, operating margin 7.2%DELLSuper Micro Computer: revenue $39.1bn, growth 76.3%/yr, operating margin 7.1%SMCIHewlett Packard Enterprise: revenue $34.3bn, growth 6.4%/yr, operating margin -1.3%HPE
Peer map from each company's latest 10-K. Bubble size = revenue. Source: SEC filings [6] [8] [7].
CompanyWhere they competeRevenueGrowth/yr (3y)Op. marginFCF margin
Super Micro Computer (SMCI, FY2026)Servers, storage and AI racks, plus parts and complete data-center building blocks$39.1bn76.3%7.1%-17.8%
Dell Technologies (DELL, FY2026)Data-center and AI servers; Supermicro names Dell among its principal competitors 910$113.5bn3.5%7.2%7.5%
Hewlett Packard Enterprise (HPE, FY2025)Servers, including AI and high-performance computing systems; each names the other a principal competitor 1112$34.3bn6.4%-1.3%1.8%

Supermicro says contract makers such as Foxconn, Quanta and Wiwynn benefit from scale and very low-cost manufacturing, and more and more sell their own brands 13. It also says older rivals and new, mainly Asia-based entrants have made competition tougher in recent years 14.

🧭Supermicro SWOT: strengths, weaknesses, opportunities and threats

💪 Strengths

  • Supermicro builds its servers from reusable building blocks and times its designs to new NVIDIA, Intel and AMD chips, which it says gets new systems to market fast 3.
  • Supermicro says it has been profitable every year since it began in 1993 16.
  • Supermicro said it took more than $60 billion of new orders in the fourth quarter of fiscal 2026 and ended the year with record backlog 17.
  • Sales grew 76.3% ✓ a year over the last three fiscal years, an A ✓ on our report card.

🩹 Weaknesses

  • One supplier made up 63.1% of Supermicro's total purchases in fiscal 2026 5.
  • One customer took 28.1% of Supermicro's net sales in fiscal 2026 1.
  • Management concluded that internal control over financial reporting was not effective at 30 June 2026, because of one material weakness in IT general controls 18.
  • Supermicro says it has no succession plan for Charles Liang, its founder and chief executive 5.

🚀 Opportunities

  • With its fiscal 2026 results, Supermicro said it expects fiscal 2027 net sales of $65.0 billion to $72.0 billion 1920.
  • It has announced support for NVIDIA's coming Vera Rubin platform and added rack-scale and liquid-cooling capacity for it 4.
  • Its data-center building blocks grew to more than ten key parts in about a year, from cooling towers to management software 4.
  • Supermicro says a February 2026 Supreme Court ruling may entitle it to a tariff refund; it had recorded no asset for one at 30 June 2026 21.

⚠️ Threats

  • In its fiscal 2026 annual report, Supermicro said the SEC, Justice Department and BIS inquiries remained open 5. It says they could lead to penalties, and BIS could seek to suspend or deny its export privileges 5.
  • Supermicro says pricing pressure has pushed average selling prices down across its business over time 14.
  • Tariff expense rose $237.7 million in fiscal 2026 because of new trade policies 16.
  • US rules require licences to ship advanced computing items to China and most Middle East countries 22.

🏰Does Supermicro have a moat?

None moatSupermicro is quick to bring new chips to market, but it leans on trade secrets, says most rivals are bigger and better known, and priced keenly to gain market share 3 13 13 15.
Brand 2/5
Why 2?

Supermicro says most of its rivals have been around longer, or have much more money, better-known names or a deeper hold on the market 13. In March 2026, federal prosecutors in New York unsealed an indictment of three people then working for or linked to Supermicro 14. The charge is an alleged export-control conspiracy, and the company was not named a defendant 14. Supermicro says the alleged conduct is a source of harm to its reputation 14.

Switching costs 2/5
Why 2?

Supermicro says large orders face intense competition and pricing pressure, and big customers may want to limit how much they depend on it 14. Its complete data-center building blocks combine servers, storage, networking, racks, liquid cooling, power and software 3.

Network effects 1/5
Why 1?

Supermicro sold to over 1,000 customers in over 100 countries in fiscal 2026, plus thousands more end users through resellers 3. In our view, one more buyer of a server does not make the server better for anyone else.

Cost advantages and scale 2/5
Why 2?

Gross margin fell to 10.8% in fiscal 2026, which Supermicro puts down mainly to competitive pricing to gain market share, product and customer mix, and higher factory costs 15. It says contract makers benefit from scale and very low-cost manufacturing 13. Supermicro makes most of its systems in San Jose, and believes it is the only major server vendor that makes a large share of its systems in the US 3. It says pricing pressure has pushed average selling prices down over time 14.

Intangibles (patents, licences, regulation) 2/5
Why 2?

Supermicro says it protects its technology mainly through trade secrets, know-how and unpatented design information 13. It says neither the business as a whole nor any main part of it depends materially on a single patent 13.

A moat is what keeps rivals from taking a company's customers and profits. Scores are QuantVantage.ai's judgement (5 = strongest), set with the same rubric on every explainer (orange is Supermicro; grey dots are peers).

🔭What should you watch next?

3 Nov 2026

First-quarter FY2027 results

Supermicro will review its results for the three months to September on a call at 5:00 p.m. ET 30. Its 20 October estimate of $18.5 billion to $19.5 billion of revenue, and a 12.0% to 12.5% gross margin, was preliminary and unaudited 30.

Outlook of 2026-08-11, for the year to 30 Jun 2027

FY2027 sales outlook

With its fiscal 2026 results, Supermicro said it expects fiscal 2027 net sales of $65.0 billion to $72.0 billion 1920. Figures on this page run to FY2026, which ended on 30 June 2026.

Open as of the fiscal 2026 10-K (2026-08-31)

Government inquiries

The SEC sent Supermicro another subpoena on 28 April 2026 21. After the March indictment, the US Attorney's Office for the Southern District of New York sent a grand jury subpoena 21. It asks about the indicted people and Supermicro's compliance program, and Supermicro says it is cooperating 21. The Commerce Department's export enforcement office sent at least two subpoenas and one informal request about a customer tied to the indictment 5. Supermicro says it has not been told it is a target of these export inquiries 5.

During fiscal 2027

Remaining material weakness

Supermicro says its actions will likely remediate its remaining material weakness in internal control, subject to testing during fiscal 2027 1820. Its auditor, BDO, gave an unqualified opinion on the fiscal 2026 financial statements, but said internal control over financial reporting was not effective at 30 June 2026 18.

Ongoing

Netlist trade complaint

On 11 August 2026, Netlist filed a memory-patent complaint with the US International Trade Commission against Micron and some downstream customers, including Supermicro 21. The complaint seeks a limited exclusion order, an order blocking certain imports 21. As of 31 August 2026 the commission had not opened an investigation 21.

Ongoing

Securities class actions

New putative (proposed) securities class actions were filed against Supermicro on 25 March, 8 April and 12 May 2026 21. They were consolidated on 13 July 2026 21. In its fiscal 2026 annual report, filed in August 2026, the company said the matters were too early to judge 21.

4 Feb 2027

Annual meeting

Supermicro has set 4 February 2027 for its annual stockholder meeting, which it expects to hold online 32.

📚Learn the words

ServerA powerful computer that runs websites, apps or AI models for many users at once, usually in a data center.
RackA tall metal frame that holds many servers stacked together, with shared power, cooling and network cables.
Liquid coolingCooling chips with fluid pumped close to them instead of with fans and air. It can carry away more heat.
GPUA graphics processing unit: a chip that does many sums at once, which makes it good for training and running AI.
BacklogOrders a company has won but not yet delivered, so they are not yet counted as sales.
Gross marginThe share of each sales dollar left after paying to make the product. A low gross margin means each sale earns a thin profit.
Free cash flowThe cash a business has left after running itself and buying equipment. It can be negative when a company pays for a lot of stock up front.
Material weaknessA serious gap in a company's checks on its own accounts, big enough that a mistake in the numbers might not be caught in time.
SubpoenaA legal order to hand over documents or give evidence in an inquiry.
IndictmentA formal criminal charge. It is an accusation that still has to be proved in court.
Fiscal yearA company's own 12-month accounting year. Supermicro's ends on 30 June, so FY2026 ended in June 2026.
Economic moatA lasting advantage, like a strong brand or high switching costs, that keeps rivals from taking a company's customers.

❓Frequently asked questions about Supermicro

How does Supermicro make money?

Supermicro makes money by selling servers, storage systems and AI racks to data-center customers 4 3. Sales were $39.1bn ✓ in FY2026, and it kept $2.2bn ✓ as net income. Services and software brought in $538.3 million of that, counted within system sales 14.

Was Supermicro charged in the 2026 export case?

The company was not named as a defendant or alleged co-conspirator in the March 2026 export-control indictment 5. The charges were against three people then working for or linked to Supermicro, including a former senior vice president and director 14. Supermicro then put the two charged employees on leave and ended work with the charged contractor 23. As of August 2026, none of the three worked for or with the company 5.

What did Supermicro's own investigation find?

An independent investigation, led by Supermicro's lead independent director, found no evidence that any current senior manager knew of the alleged diversion scheme 5. It found no basis to conclude that past financial statements could not be relied on; the company says government inquiries are not bound by these findings 5.

Did Supermicro's auditor sign off on its accounts?

Auditor BDO USA gave an unqualified opinion on Supermicro's fiscal 2026 financial statements 18. It also said the company did not keep effective internal control over financial reporting at 30 June 2026 18. Supermicro had filed its fiscal 2024 annual report and two quarterly reports late 5.

Who are Supermicro's biggest competitors?

Supermicro names Cisco, Dell, Hewlett Packard Enterprise and Lenovo as principal competitors 13. It also names contract makers Foxconn, Quanta Computer and Wiwynn 13.

Who runs Supermicro?

Charles Liang founded Supermicro and has been its president, chief executive and chairman since 1993 24. Mark Long, a former chief financial officer of Western Digital, was appointed Supermicro's chief financial officer on 14 October 2026 25.

Where does Supermicro make its servers?

Supermicro makes most of its systems at its headquarters in San Jose, California 3. It also assembles and tests systems in Taiwan, the Netherlands and Malaysia 3.

Does Supermicro pay a dividend?

Not in FY2026, when it returned 0.0% ✓ of its profit to shareholders. On 5 August 2026, Supermicro declared the first cash dividend on its 7.00% Series A Mandatory Convertible Preferred Stock 26.

🎮Play: higher or lower, then test yourself

Higher or lower · round 1 of 6

Figures come from each company's latest annual report (10-K); fiscal years end in different months. Sources: [6] [8] [7].

Score: 0

🧠 Test yourself

5 quick questions. Score: 0 / 5

1. What was Charles Liang's base salary as Supermicro's CEO in fiscal 2026?

His base salary was $1.00, and he received no new equity awards that year 27.

2. About how much of Supermicro's FY2026 sales were shipped to the United States?

Sales shipped to the United States made up 71% ✓ of Supermicro's sales in FY2026.

3. Out of every $100 of sales in FY2026, about how much did Supermicro keep as profit?

Supermicro kept about $6 ✓ of every $100 as net income; about $89 ✓ went on the systems themselves.

4. Up to how much of a rack's heat does Supermicro say its DLC-2 liquid cooling captures?

Supermicro says DLC-2 captures up to 98% of a rack's heat 4.

5. What share of Supermicro's purchases came from a single supplier in fiscal 2026?

One supplier made up 63.1% of Supermicro's total purchases in fiscal 2026 5.

🔎Sources and method

Every figure comes from a source listed here or is calculated from those sources (marked ✓). Company financials are taken from SEC filings (10-K and 10-Q) as tagged in XBRL. Peer grades rank the same measures across the company and its peers. This page contains no share-price data and no valuation.

  1. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Note 2, Segment Information) — One segment, net sales by region shipped to, services and software revenue, customer concentration (accessed 2026-10-31)
  2. Super Micro Computer (SMCI) Form 10-K for fiscal year 2026, filed 2026-08-31 — revenue by product, segment and geography (accessed 2026-10-28)
  3. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Item 1, Business) — Building-block design, DCBBS, chip-vendor collaboration, customers and manufacturing (accessed 2026-10-29)
  4. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Item 1, Business) — Products and services, fiscal 2026 product launches, liquid cooling, sales channels and international sales (accessed 2026-10-31)
  5. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Item 1A, Risk Factors) — Independent investigation, government inquiries, export inquiries, supplier concentration, key person, late filings (accessed 2026-10-31)
  6. SEC EDGAR companyfacts: Super Micro Computer (SMCI) — annual 10-K facts (accessed 2026-10-28)
  7. SEC EDGAR companyfacts: Hewlett Packard Enterprise Co (HPE) — annual 10-K facts (accessed 2026-10-28)
  8. SEC EDGAR companyfacts: Dell Technologies Inc. (DELL) — annual 10-K facts (accessed 2026-10-28)
  9. Super Micro Computer Form 10-K for fiscal year 2026 (filed 2026-08) — Item 1 competition: principal competitors (accessed 2026-10-29)
  10. Dell Technologies Form 10-K for fiscal year 2026 (filed 2026-03-16) — Item 1 and Note 18: ISG and CSG segment descriptions, product categories, CSG strategy (accessed 2026-10-29)
  11. Hewlett Packard Enterprise Form 10-K for fiscal year 2025 — Item 1 competition (accessed 2026-10-29)
  12. Super Micro Computer Form 10-K for fiscal year 2026 — Item 1 competition (accessed 2026-10-29)
  13. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Item 1, Business) — Competition, principal competitors and intellectual property (accessed 2026-10-29)
  14. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Item 1A, Risk Factors) — Large customers, pricing pressure, falling selling prices and the March 2026 indictment (accessed 2026-10-29)
  15. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Item 7, Management's Discussion and Analysis) — Gross margin and the reasons for its change (accessed 2026-10-29)
  16. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Item 7, Management's Discussion and Analysis) — Overview, net sales drivers, cost of sales drivers, supply constraints, related-party contract makers (accessed 2026-10-31)
  17. Super Micro Computer, Inc. Form 8-K, Exhibit 99.1: fourth quarter fiscal 2026 preliminary business update (2026-07-21) — Fourth quarter fiscal 2026 new orders and backlog (accessed 2026-10-31)
  18. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Item 9A, Controls and Procedures) — Internal control conclusion, material weaknesses, remediation plan and the auditor's report (accessed 2026-10-31)
  19. Super Micro Computer, Inc. Form 8-K, Exhibit 99.1: fourth quarter and fiscal 2026 results (2026-08-11) — Fourth quarter fiscal 2026 results, new orders and fiscal 2027 outlook (accessed 2026-10-31)
  20. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (cover and Item 1, Corporate Information and Human Capital) — Incorporation, headquarters, listings, fiscal year end and employees (accessed 2026-10-31)
  21. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Note 15, Commitments and Contingencies) — Lawsuits, subpoenas, patent complaints, tariff refund and purchase commitments (accessed 2026-10-31)
  22. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Item 1, Government Regulation) — Export controls on advanced computing products (accessed 2026-10-31)
  23. Super Micro Computer, Inc. Form 8-K, Item 5.02 (filed 2026-03-20) — Company response to the March 2026 indictment (accessed 2026-10-31)
  24. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Item 10, Directors and Executive Officers) — Executive officers, directors and the founders' backgrounds (accessed 2026-10-31)
  25. Super Micro Computer, Inc. Form 8-K, Item 5.02 (filed 2026-10-15) — Chief financial officer appointment (accessed 2026-10-31)
  26. Super Micro Computer, Inc. Form 8-K, Item 8.01 (filed 2026-08-05) — First dividend on the mandatory convertible preferred stock (accessed 2026-10-31)
  27. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Item 11, Executive Compensation) — Chief executive's fiscal 2026 pay arrangement (accessed 2026-10-31)
  28. SEC EDGAR companyfacts: Super Micro Computer (SMCI) — quarterly 10-Q/10-K facts (accessed 2026-10-28)
  29. SEC EDGAR companyfacts: Super Micro Computer (SMCI) — balance sheet at 2026-06-30 (accessed 2026-10-28)
  30. Super Micro Computer, Inc. Form 8-K, Exhibit 99.1: first quarter fiscal 2027 preliminary business update (2026-10-20) — Preliminary first quarter fiscal 2027 revenue and gross margin; results call date (accessed 2026-10-31)
  31. Super Micro Computer, Inc. Form 8-K, Exhibit 99.1: proposed equity and equity-linked financing (press release 2026-06-09) — AI orders received and the financing planned to buy components (accessed 2026-10-31)
  32. Super Micro Computer, Inc. Form 10-K, fiscal 2026 (Item 9B, Other Information) — Amended bylaws and the date of the 2027 annual meeting (accessed 2026-10-31)