01—Abstract
Summary
Summary of the 8-K filed February 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Super Micro Computer, Inc. reported unaudited results for its second quarter of fiscal year 2026, ended December 31, 2025.
Net sales were $12.7 billiona, compared with $5.0 billion in the first quarter of fiscal 2026 and $5.7 billion in the second quarter of fiscal 2025. GAAP gross margin was 6.3%, down from 9.3% in the prior quarter and 11.8% a year earlier. Net income was $401 million, or $0.60 per diluted share, versus $168 million in the first quarter and $321 million a year earlier.
Non-GAAP diluted EPS was $0.69b, compared with $0.59 in the second quarter of fiscal 2025. Cash used in operations for the quarter was $24 million, and capital expenditures and investments were $46 million. The balance sheet grew sharply over the six months from June 30, 2025.
Accounts receivable rose to $11.0 billionc from $2.2 billion, inventories to $10.6 billion from $4.7 billion, and accounts payable to $13.8 billion from $1.3 billion. For the six months ended December 31, 2025, the company used $941.4 million of cash in operating activities, compared with $169.1 million provided in the prior-year period. Cash and cash equivalents were $4.1 billion and total bank debt and convertible notes were $4.9 billion as of December 31, 2025.
Looking ahead, the company expects third-quarter fiscal 2026 net sales of at least $12.3 billiond, GAAP diluted EPS of at least $0.52, and non-GAAP diluted EPS of at least $0.60. It expects fiscal 2026 net sales of at least $40.0 billion. The filing attributes the company's growth to large AI and enterprise deployments and cites risks including customer concentration, lower margins on larger customer sales, and tariffs.
02—Key points
Key Highlights
- Q2 FY2026 net sales of $12.7 billion, versus $5.0 billion in Q1 FY2026 and $5.7 billion in Q2 FY2025.
- GAAP gross margin of 6.3%, versus 9.3% in Q1 FY2026 and 11.8% in Q2 FY2025; non-GAAP gross margin of 6.4% versus 11.9% in Q2 FY2025.
- Net income of $401 million, or $0.60 per diluted share, versus $168 million in Q1 FY2026 and $321 million in Q2 FY2025; non-GAAP diluted EPS of $0.69 versus $0.59 a year earlier.
- Operating cash outflow of $24 million in the quarter, with six-month net cash used in operations of $941.4 million, driven by a $8.8 billion increase in accounts receivable and a $12.5 billion increase in accounts payable.
- Balance sheet at December 31, 2025 showed inventories of $10.6 billion, accounts receivable of $11.0 billion, cash of $4.1 billion, and bank debt and convertible notes of $4.9 billion.
- Q3 FY2026 guidance calls for net sales of at least $12.3 billion, GAAP diluted EPS of at least $0.52, and non-GAAP diluted EPS of at least $0.60.
- Full-year FY2026 guidance calls for net sales of at least $40.0 billion.
03—Questions
Frequently Asked Questions
How did revenue and profitability trend in the quarter?
Net sales were $12.7 billion, up from $5.0 billion in the prior quarter and $5.7 billion a year earlier. Net income was $401 million, or $0.60 per diluted share, compared with $168 million in the prior quarter and $321 million a year earlier. Gross margin was 6.3%, down from 9.3% in the prior quarter and 11.8% a year earlier.
Why did cash flow from operations turn negative?
For the six months ended December 31, 2025, the company reported net cash used in operating activities of $941.4 million. The cash flow statement shows large increases in accounts receivable ($8.8 billion) and inventories ($6.1 billion), partly offset by a $12.5 billion increase in accounts payable. In the quarter itself, cash used in operations was $24 million.
What does management expect for the coming quarter and fiscal year?
For the third quarter ending March 31, 2026, the company expects net sales of at least $12.3 billion, GAAP diluted EPS of at least $0.52, and non-GAAP diluted EPS of at least $0.60. For fiscal 2026, it expects net sales of at least $40.0 billion. The company also expects the continued addition of customer commitments in upcoming quarters.
What is the company's liquidity and debt position?
As of December 31, 2025, total cash and cash equivalents were $4.1 billion, and total bank debt and convertible notes were $4.9 billion. Lines of credit and current portion of term loans were $201.8 million, and convertible notes were $4.65 billion on the balance sheet.
What risks does the filing highlight?
The forward-looking statements cite quarterly fluctuations in operating results, greater customer concentration and lower margins as the company targets larger customers, possible declines in average selling prices if customers do not keep buying the latest products, and adverse economic conditions, including increased tariffs. The company refers investors to the risk factors in its Form 10-K for the fiscal year ended June 30, 2025.
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