Super Micro Computer, Inc. (SMCI) disclosed a new order pipeline exceeding $60 billion in its preliminary fourth-quarter fiscal 2026 results released Thursday, driving the stock to jump over 6%. Mizuho analyst Vijay Rakesh noted that with only $1.3 billion in cash on its balance sheet, the company may require near-term capital raises to fulfill the massive order influx. The server and hardware solution provider reported June-quarter revenues tracking near the lower end of its $11.0 billion to $12.5 billion guidance due to component shortages and construction delays, while gross margins outperformed initial expectations at 15% to 17% versus guidance of 8.2% to 8.4%.
Supermicro Reports Q4 Preliminary Results With $60B Order Backlog
Super Micro Computer revealed that its June-quarter revenues were tracking near the lower bound of its previously issued $11.0 billion to $12.5 billion guidance. Mizuho analyst Vijay Rakesh attributed the revenue bottleneck to potential "component/memory shortage headwinds and shell construction delays."
Despite the top-line constraint, Supermicro's gross margin forecast of 15% to 17% far exceeded its initial guidance of 8.2% to 8.4%. The company disclosed a new order pipeline exceeding $60 billion. SMCI share price jumped over 6% on Thursday and was on-track to gain for the third consecutive session. SMCI stocks gained 6.4% year-to-date.
Mizuho Maintains Neutral Rating, Lowers Price Target to $34
Mizuho maintained its Neutral rating on the stock while trimming its price target to $34 from $44. "With >$60B of new orders and just $1.3B of cash on its BS, SMCI could see some potential near-term capital raises," Rakesh wrote in an investor note.
The research firm emphasized that while strong gross margin tailwinds are boosting free cash flow, ongoing market share competition and significant order volume could necessitate future capital raises to meet customer demand.
Balance Sheet Analysis Reveals 3.8x Net Debt to EBITDA Ratio
Mizuho highlighted balance sheet disparities between Supermicro and its key competitors, noting that "SMCI's net debt/TTM EBITDA is at 3.8x, higher vs key peer DELL's (DELL) 1.2x, with SMCI's cash conversion cycle at 127.7 versus DELL's at -5.8, with a cash-rich PC/client segment and a significantly larger AI Server support group."
The firm pointed out potential capital hurdles ahead as Supermicro works to scale up manufacturing to fulfill the massive influx of business. "With >$60B of new orders and just $1.3B of cash on its BS, SMCI could see some potential near-term capital raises," Rakesh noted.
FAQ
What did Super Micro Computer disclose in its Q4 fiscal 2026 preliminary results?
Super Micro Computer disclosed a new order pipeline exceeding $60 billion in its preliminary fourth-quarter fiscal 2026 results. The company reported June-quarter revenues tracking near the lower end of its $11.0 billion to $12.5 billion guidance, while gross margins came in between 15% and 17%, exceeding initial guidance of 8.2% to 8.4%.
Why did Mizuho lower its price target on SMCI stocks?
Mizuho lowered its price target to $34 from $44 while maintaining a Neutral rating. The firm noted that with over $60 billion of new orders and only $1.3 billion in cash on its balance sheet, SMCI could require near-term capital raises. Mizuho highlighted that SMCI's net debt/TTM EBITDA ratio of 3.8x is higher compared to key peer DELL's 1.2x.
How much did SMCI stocks gain on Thursday?
SMCI stocks jumped over 6% on Thursday and were on-track to gain for the third consecutive session. Year-to-date, SMCI stocks gained 6.4%.
