SMCI Q3 Revenue Plunges 15%, Gross Margin Drops to 9%, Shares Sink After Hours

After the US market closed on November 4 (ET), SMCI released a disappointing Q3 earnings report. Revenue came in at $5.0 billion, down 15% year-over-year and 14% quarter-over-quarter. Gross margin dropped sharply to 9.3%, compared to 13.1% a year ago and down from 9.5% last quarter. Net income fell 60% year-over-year to $168 million. Non-GAAP earnings per share were $0.35, compared to $0.73 a year earlier.

Following the results, the stock fell over 10% in after-hours trading, though it remains up 56% year-to-date.

The disappointing report has raised concerns about whether Super Micro Computer can truly capitalize on the ongoing AI boom.