SMCI F1Q27: Strong AI Infra demand fuels beat and raise

Bernstein notes Super Micro Computer reported a strong F1Q27 that came in well above expectations, with shares up 8% after the close. Revenue of $19.95bn rose 79% QoQ and 298% YoY, 35% above Bernstein and 33% above consensus, and exceeded the high end of the preliminary $18.5-19.5bn range. Gross margin of 12.8% beat estimates by 238bps despite a 480bps QoQ decline, while operating profit of $2.16bn and EPS of $1.81 were far above expectations. Guidance for F2Q27 revenue of $19.5-21.5bn implies a $20.5bn midpoint, 24% above consensus, and EPS of $1.66-1.90 is 65% above consensus at the midpoint; FY27 revenue is guided to $72-82bn with 11.8-12.2% gross margin. The results validate AI infrastructure demand and read positively for Dell and HPE, but management credibility and the cancelable nature of backlog remain concerns. The firm rates the stock Market-Perform with a $42 target price.