Super Micro Cuts Price Target to $38 After 153% Q/Q Revenue Jump
Super Micro posted December quarter revenue of $12.7 billion, a 153% sequential increase, beating forecasts by over $2 billion while delivering gross margin of 6.4% versus projected 6.5%. Barclays cut its price target to $38 from $43 and maintained an Equal Weight rating, citing modest margin shortfall and conservative Q4 outlook.
1. December Quarter Results
Super Micro reported revenue of $12.7 billion in the December quarter, representing a 153% increase from the prior period and exceeding Barclays’ estimate by more than $2 billion. Gross margin came in at 6.4%, just below the 6.5% forecast, reflecting mix shifts and cost pressures.
2. Analyst Price Target Revision
Barclays lowered its price target on Super Micro to $38 from $43 while keeping an Equal Weight rating. The analyst cited the slight margin shortfall and a conservative outlook for the next quarter as reasons for the adjustment.
3. Fiscal 2026 Guidance and Margin Outlook
Management forecast fiscal Q3 revenue of at least $12.3 billion and raised full-year 2026 revenue guidance to a minimum of $40 billion, in line with a projected 66% growth rate. Gross margin is expected to improve by 30 basis points next quarter, supported by higher contributions from Data Center Building Block Solutions.