Super Micro Computer, Inc. stock research
FY2026 Q1
Super Micro Computer (SMCI) Gross Margin — Quarter Ended Sep 30, 2025
Revenue decreased compared to both the prior quarter and the same quarter last year, while cost of revenue declined at a slower pace, resulting in a lower gross profit and a weakened gross margin. The gross margin contracted relative to both comparison periods, reflecting that the reduction in gross profit outpaced the decline in revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2026 Q1
Revenue decreased compared to both the prior quarter and the same quarter last year, while cost of revenue declined at a slower pace, resulting in a lower gross profit and a weakened gross margin. The gross margin contracted relative to both comparison periods, reflecting that the reduction in gross profit outpaced the decline in revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue fell more sharply than cost of revenue from the prior quarter, compressing gross profit and margin. Compared to the year-ago quarter, the decline in gross profit was substantially larger than the decline in revenue, indicating a structural weakening in margin.
- Gross margin weakened sequentially from the prior quarter and weakened more substantially compared to the same quarter one year earlier. Revenue was lower in both comparisons, while cost of revenue decreased less than revenue, leading to a lower gross profit and a narrower margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
9.3%
Gross profit
$467.4M
Revenue
$5.0B
Cost of revenue
$4.6B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-3.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $5.7B | $670.0M | $5.0B | 11.8% |
| Mar 31, 2025 | $4.6B | $440.2M | $4.2B | 9.6% |
| Jun 30, 2025 | $5.8B | $544.1M | $5.2B | 9.5% |
| Sep 30, 2025 | $5.0B | $467.4M | $4.6B | 9.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.1 pts
Year-over-year change
Sep 30, 2024
-3.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue fell more sharply than cost of revenue from the prior quarter, compressing gross profit and margin. Compared to the year-ago quarter, the decline in gross profit was substantially larger than the decline in revenue, indicating a structural weakening in margin.
Gross margin weakened sequentially from the prior quarter and weakened more substantially compared to the same quarter one year earlier. Revenue was lower in both comparisons, while cost of revenue decreased less than revenue, leading to a lower gross profit and a narrower margin.
Monitor the trajectory of cost of revenue relative to revenue, as the current period shows cost of revenue declining more slowly than revenue, which directly pressures gross margin.