Short answer
Supermicro (SMCI) filed its fiscal 2026 10-K annual report with the SEC on Aug 31, 2026. It reported revenue of $39.1B (+77.8% year over year) and net income of $2.2B.
- Top risk flagged: Regulatory/legal risk: Ongoing SEC and U.S. Attorney investigations into alleged export control violations involving former associates, with potential penalties and export privilege suspensions
FY2026 key financial metrics · XBRL
- Revenue
- $39.1B
- +77.8% YoY
- Net income
- $2.2B
- +112.7% YoY
- Operating margin
- 7.1%
- +1.4 pp YoY
- Gross margin
- 10.8%
- −0.2 pp YoY
- EPS (diluted)
- $3.26
- +94.0% YoY
- ROE
- 15.4%
- −1.2 pp YoY
- Operating cash flow
- −$6.8B
- −510.4% YoY
Source: XBRL data from the Supermicro (SMCI) FY2026 10-K on SEC EDGAR. USD.
Supermicro FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Provider of total IT solutions focused on AI, HPC, cloud, and intelligent edge with modular rack-scale servers and storage systems
- New emphasis: Data Center Building Block Solutions (DCBBS) modular AI infrastructure with >10 subsystems including advanced liquid cooling DLC-2 reducing power use by up to 40%
- Strategic shift: Expanded Silicon Valley operations with new business complex and DCBBS campus, pursuing leadership in Total AI/IT Solutions and faster AI infrastructure deployment
- Quantitative metric: R&D headcount over 3,500 employees, total workforce over 7,000, with significant investments in U.S.-based manufacturing capacity
- Noteworthy fact: Introduced AI-focused systems supporting NVIDIA Blackwell/Blackwell Ultra and AMD next-gen Helios platforms, plus expanded Arm-based and edge/IoT product portfolios
Management Discussion & Analysis
- Revenue $39.1B in FY2026, up 77.8% YoY from $22.0B in FY2025, driven by data center deployments, Hyper Servers, GPU & Super Racks ($15.3B, +83.4%)
- Gross margin 10.8% in FY2026 vs 11.1% in FY2025; operating expenses 3.7% of sales vs 5.4%; operating income margin 7.1% vs 5.7%; net income margin 5.7% vs 4.8%
- Best performing segment: Hyper Servers, GPU & Super Racks revenue $15.3B, up 83.4% YoY; worst: services/software smaller contributor ($538M in FY2026)
- Cash flow: operating cash used $(6.8)B in FY2026 vs provided $1.7B prior year; investing cash used $200M; financing provided $9.5B including $5.6B equity offerings and $3.9B debt drawdowns
- Guidance/risk: FY2027 capex $380-400M for manufacturing and IT; risks include macroeconomic factors, component supply constraints, and evolving tax legislation impacts
Risk Factors
- Regulatory/legal risk: Ongoing SEC and U.S. Attorney investigations into alleged export control violations involving former associates, with potential penalties and export privilege suspensions
- Geopolitical/macro threat: Export control restrictions on GPUs and AI-associated semiconductors, including U.S. unilateral controls targeting China and other regions, limiting product sales and licenses
- Operational/supply chain vulnerability: Heavy reliance on Ablecom and Compuware for contract manufacturing and warehousing; 2.1%-4.3% cost of sales from their products; risk if these relationships deteriorate
- Competitive/market disruption risk: Intense competition from established and Asia-based rivals, with rapid technological change and pricing pressure threatening revenues and margins
- Financial/structural risk: High indebtedness totaling approximately $8.7 billion as of June 30, 2026, including $2 billion revolving credit and $4.7 billion in convertible notes, constraining cash flow and operational flexibility
Generated from the filing text; verify against the original. How to read a 10-K
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