Server solutions provider Super Micro (NASDAQ: SMCI) will be announcing earnings results this Tuesday afternoon. Here’s what to look for.
Super Micro missed analysts’ revenue expectations by 4.2% last quarter, reporting revenues of $5.76 billion, up 7.5% year on year. It was a softer quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.
Is Super Micro a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Super Micro’s revenue to decline 2.7% year on year to $5.78 billion, a reversal from the 180% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.39 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Super Micro has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Super Micro’s peers in the it services & other tech segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Xerox delivered year-on-year revenue growth of 28.3%, missing analysts’ expectations by 3.2%, and Applied Digital reported revenues up 84.3%, topping estimates by 17.6%. Xerox traded down 2.9% following the results while Applied Digital was up 16.1%.
Read our full analysis of Xerox’s results here and Applied Digital’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the it services & other tech stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.9% on average over the last month. Super Micro is down 4.7% during the same time and is heading into earnings with an average analyst price target of $53.19 (compared to the current share price of $52.08).
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