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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.
