Super Micro Computer

SMCI Q3 2025 Earnings

Reported May 6, 2025 at 4:07 PM ET · SEC Source

Q3 25 EPS

$0.31

Q3 25 Revenue

$4.60B

vs S&P Since Q3 25

-42.1%

TRAILING MARKET

SMCI -13.6% vs S&P +28.4%

Market Reaction

Did SMCI Beat Earnings? Q3 2025 Results

Super Micro Computer delivered a bruising fiscal Q3 2025, posting non-GAAP diluted EPS of $0.31 on revenue of $4.60 billion, a result that fell well short of Wall Street expectations and underscored the mounting pressures facing the AI server maker. … Read more Super Micro Computer delivered a bruising fiscal Q3 2025, posting non-GAAP diluted EPS of $0.31 on revenue of $4.60 billion, a result that fell well short of Wall Street expectations and underscored the mounting pressures facing the AI server maker. Revenue slid 19% sequentially from $5.68 billion, and while it still represented a 19.5% year-over-year gain, the story was defined by severe margin compression: GAAP gross margin collapsed to just 9.6% from 15.5% a year ago, as intense pricing competition in the AI infrastructure market carved deeply into profitability. CEO Charles Liang pointed to customer delays in platform decisions, particularly around GPU generations, as the primary culprit, though analysts have since significantly downgraded their forward estimates in response. The pain carried into guidance, with Supermicro cutting its full-year FY2025 revenue outlook to $21.80–$22.60 billion from a prior range of $23.50–$25.00 billion, while projecting Q4 revenue of $5.60–$6.40 billion as delayed commitments are expected to materialize in coming quarters.

Key Takeaways

  • Customer delays in platform decisions reduced Q3 revenue
  • Gross margin compression to 9.6% from 15.5% year-over-year
  • Strong operating cash flow of $627 million in Q3
  • 19.5% year-over-year revenue growth despite sequential decline
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SMCI YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

“We continue to make great progress with our DCBBS (Data Center Building Block Solution), DLC (Direct Liquid Cooled-2) and AI technology leadership, but some customers delayed making platform decisions in the quarter.”

— Charles Liang, Q3 2025 Earnings Press Release