Super Micro Computer, Inc. stock research
FY2026 Q2
Super Micro Computer (SMCI) Gross Margin — Quarter Ended Dec 31, 2025
Revenue increased substantially compared to both the prior quarter and the same quarter last year, while gross profit rose from the prior quarter but was only slightly higher than a year ago. Cost of revenue grew at a faster pace than revenue, causing gross margin to weaken relative to both comparison periods.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q2
Revenue increased substantially compared to both the prior quarter and the same quarter last year, while gross profit rose from the prior quarter but was only slightly higher than a year ago. Cost of revenue grew at a faster pace than revenue, causing gross margin to weaken relative to both comparison periods.
- The strongest observable margin driver is the relationship between cost of revenue and revenue: cost of revenue increased more rapidly than revenue, compressing gross margin. This dynamic is evident in the margin decline from the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, but gross margin weakened. Compared to the same quarter one year earlier, revenue was higher, gross profit was slightly higher, and cost of revenue was higher, with gross margin also weakening.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
6.3%
Gross profit
$798.6M
Revenue
$12.7B
Cost of revenue
$11.9B
Quarter-over-quarter change
-3.0 pts
Year-over-year change
-5.5 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $12.7B | $798.6M | $11.9B | 6.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-3.0 pts
Year-over-year change
Dec 31, 2024
-5.5 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 cost of revenue and revenue: cost of revenue increased more rapidly than revenue, compressing gross margin. This dynamic is evident in the margin decline from the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, but gross margin weakened. Compared to the same quarter one year earlier, revenue was higher, gross profit was slightly higher, and cost of revenue was higher, with gross margin also weakening.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has been the primary factor behind the margin compression.