Supermicro’s Q1 Outlook Weakens. What’s Next for SMCI Stock?

Supermicro (SMCI), or Super Micro Computer, irked investors after it lowered its revenue outlook for the first quarter of fiscal 2026. The company, which provides high-performance servers and storage systems for artificial intelligence (AI) workloads, said that design win upgrades caused some expected revenue for the quarter to shift into the next one. As a result, management now expects Q1 revenue to reach about $5 billion, well below its earlier forecast of $6 to $7 billion.

The revised outlook points to a notable slowdown in growth for a company that has been benefiting from solid demand for its AI-optimized servers. In its most recent quarter, Supermicro reported $5.8 billion in revenue, up 7.4% year-over-year. However, that figure highlights a continued deceleration in the sales growth rate compared with earlier quarters. For instance, SMCI’s top line grew 19.5% in Q3, 54.9% in Q2, and 180.1% in Q1 of fiscal 2025.