Aug 6 – Super Micro Computer (NASDAQ:SMCI) stock took a sharp 16% dive on early Wednesday after the company posted weaker-than-expected fiscal Q4 results and issued cautious guidance for the current quarter.
For Q4, SMCI reported adjusted earnings of $0.41 per share on revenue of $5.76 billion, both below analysts’ expectations of $0.44 EPS and $5.89 billion in revenue. Although revenue climbed 7.5% year-over-year, net income dropped to $195.2 million, down from $297.2 million a year earlier. CEO Charles Liang cited pressure from Trump-era tariffs as a headwind.
The disappointment extended to the Q1 FY26 outlook. Super Micro guided EPS in the range of $0.40 to $0.52, well below the $0.59 Street estimate. It projected Q1 revenue between $6 billion and $7 billion, slightly under the consensus midpoint.
Still, the company struck a bullish tone on the full-year view, forecasting FY2026 revenue of at least $33 billion, topping Wall Street’s $30.03 billion estimate. Liang pointed to sustained AI server demand and global expansion as long-term drivers.
Despite the upbeat long-term view, investors focused on near-term softness and hit the stock hard.
Based on the one year price targets offered by 16 analysts, the average target price for Super Micro Computer Inc is $41.81 with a high estimate of $70.00 and a low estimate of $15.00. The average target implies a downside of -26.99% from the current price of $57.26.
Based on GuruFocus estimates, the estimated GF Value for Super Micro Computer Inc in one year is $71.09, suggesting a upside of +24.15% from the current price of $57.26. Gf value is Gurufocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. For deeper insights, visit the forecast page.
This article first appeared on GuruFocus.
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