Supermicro Stock Drops as Server Maker Lowers Its Revenue Outlook

Super Micro Computer (SMCI) cut its full-year revenue outlook, sending shares lower in extended trading Tuesday.

The server maker and Nvidia (NVDA) partner said it now expects fiscal 2025 revenue of $21.8 billion to $22.6 billion, down from its prior range of $23.5 billion to $25 billion.

Supermicro shares fell over 6% in after-hours trading following the release.

For the fiscal third quarter, Supermicro posted revenue of $4.6 billion, up nearly 20% year-over-year and at the high end of its significantly reduced forecast. Adjusted earnings of 31 cents per share fell from 66 cents per share a year earlier. Supermicro said it anticipates fourth-quarter sales of $5.6 billion to $6.4 billion and adjusted earnings per share of 40 cents to 50 cents. 

CEO Charles Liang said some Supermicro clients delayed making product decisions during the period, which pushed sales beyond the fiscal third quarter.

“We do expect many of those commitments to land in the June and September quarters, reinforcing my confidence in our ability to meet our long-term targets, however economic uncertainty and tariff impacts may have a short-term impact,” Liang said. 

Supermicro shares have seen significant volatility this year as concerns about the company’s accounting practices and delayed filings raised worries it could be delisted from the Nasdaq. The company ultimately met the exchange’s deadline to file its delayed reports in February, but still faces challenges, including uncertainty around how it could be affected by shifting tariff policies.