The latest quarterly results and outlook released by UltraMicro Computer ( Super Micro Computer ) significantly exceeded market expectations, indicating that the boom in artificial intelligence infrastructure construction continues to bring strong orders to this server manufacturer.
The company announced on Tuesday that its revenue for the first quarter of fiscal year 2027, ending September 30, 2026, was $19.9 billion, which is approximately three times higher than the year-ago figure and far exceeded analysts' average forecast of around $16.4 billion.
At the same time, the company has raised its revenue guidance for the second quarter to between $19.5 billion and $21.5 billion, which is higher than Wall Street's previous estimate of around $17.1 billion. The company has also raised its full-year 2027 revenue forecast from the previous range of $65 billion to $72 billion to $72 billion to $82 billion, which is higher than the analysts' average estimate of around $69.2 billion.
Benefiting from the continuous expansion of data center capacity by cloud service providers and technology companies, this core supplier of NVIDIA chip servers is at the forefront of the AI wave of infrastructure investment. The company's stock price soared by 8% in after-hours trading.
Revenues and profits both significantly exceeded expectations.
Ultra-microcomputers saw their revenue triple in the first quarter, rising from $5 billion in the same period last year to $19.9 billion, and also showing a significant increase compared to $11.1 billion in the previous quarter.
Earnings per share after adjustment were $1.81, which is higher than the analyst average of about $1.23; GAAP Diluted earnings per share were $1.75. Net profit reached $1.594 billion, a significant increase from $1.178 billion in the previous quarter and $168 million in the same period last year.
In terms of gross margin, in the first quarter, GAAP had a gross margin of 12.7%, which is higher than the company's previous preliminary estimate range of 12.0% to 12.5%. Non-GAAP had a gross margin of 12.8%.
As of September 30, the company held $6.9 billion in cash and cash equivalents, and a total of $8.6 billion in bank debt and convertible notes.
AI Infrastructure demands continue to drive growth
The CEO of UltraMicrocomputers, Charles Liang, stated in a declaration: "Through key corporate partnerships and by continuously expanding our global production capacity, we are helping our customers to deploy AI infrastructure more quickly, while also enhancing system availability and reducing costs."
The company positions itself as a provider of “comprehensive data center solutions,” with its business covering a full range of deployments from gigawatt-level large data centers to single-container modules. In addition to hardware, ultra-small computers are also being expanded to include software, proactive operations and maintenance services, and network solutions, in order to enhance overall profitability.
The demand from AI laboratories, cloud service providers, and financial institutions for servers equipped with NVIDIA chips continues to rise, driving the company's order volume to remain high. The company stated that one of its current strategic priorities is to secure more AI server contracts, integrate the latest chips, while actively controlling costs to improve profit margins.
Last month, the ultra-microcomputer company appointed former Western Digital executive Mark Long as Chief Financial Officer, ending a nearly two-year vacancy in this position due to financial and accounting issues. This appointment is seen by the outside world as an important signal that the company is moving towards normalization at the level of internal governance.
The company had previously attracted significant market attention due to financial reporting issues. With the new financial director in place, coupled with performance that far exceeds expectations and positive outlooks, this should help stabilize investors' confidence.
