US · Nasdaq · SMCI
Super Micro Computer (SMCI) stock analysis: valuation and financials
Technology · Computer Manufacturing
$38.59 -3.5% Price as of Oct 13, 2026
Rack-scale AI server builder growing 77.8% with $7.5B net cash, but 10.8% gross margin, -$6.97B FY2026 free cash flow and 28.1% top-customer concentration; 6.4x EV/EBITDA prices cash burn.
- Market cap
- $25.6B
- P/E
- 11.5x
- EV/Sales
- 0.5x
- FCF yield
- -27.2%
- 52-week range
- $20.53 – $58.68
- Next earnings
- Nov 3, 2026
Research as of Oct 13, 2026
Business quality scorecard
- Growth100
- Profitability40
- Cash flow33
- Balance sheet98
- Capital allocation47
- Innovation47
- Valuation49
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Cloud service providers, enterprise data centers, OEMs and channel partners pay for rack-scale AI/HPC servers, storage and subsystems plus attached services; systems generate 97.6% of FY2026 revenue and are the profit engine at a 10.8% gross margin.
Financials by year
| FY2022Jul 2021–Jun 2022 | FY2023Jul 2022–Jun 2023 | FY2024Jul 2023–Jun 2024 | FY2025Jul 2024–Jun 2025 | FY2026Jul 2025–Jun 2026 | |
|---|---|---|---|---|---|
| Revenue | $5.2B | $7.1B | $15.0B | $22.0B | $39.1B |
| Revenue growth | +46.1% | +37.1% | +110.4% | +46.6% | +77.8% |
| Gross margin | 15.4% | 18.0% | 13.8% | 11.1% | 10.8% |
| Operating margin | 6.5% | 10.7% | 8.1% | 5.7% | 7.1% |
| Net income | $285.2M | $640.0M | $1.2B | $1.0B | $2.2B |
| Free cash flow | -$486.0M | $626.8M | -$2.6B | $1.5B | -$7.0B |
| FCF margin | -9.4% | 8.8% | -17.4% | 7.0% | -17.8% |
Amounts in USD · What is free cash flow?
Margins FY2026 gross margin 10.8% vs 11.1% FY2025 (-24bp) on competitive pricing and mix; operating margin rose to 7.1% from 5.7% (+139bp) as opex grew 23.8% against 77.8% revenue growth. Q4 FY2026 gross margin rebounded to 17.5% from 6.3% in Q2 FY2026.
- Cash flow ConcernFY2026 operating cash flow -$6.81B versus net income of $2.23B, a cash conversion of -172.3%; free cash flow -$6.97B, a -17.9% FCF margin, with negative FCF flagged in 2 years.
- Debt LowNet cash of $7.545B on $7.521B cash, net debt/EBITDA -2.67x, interest coverage 14.2x on $194.6M interest expense, current ratio 3.87x.
Balance sheet Leverage · Net cash
- Cash & short-term investments
- $7.5B
- Total debt
- —
- Net cash
- $7.5B
- Interest coverage
- 14.2x
- Current ratio
- 3.9x
As of Jun 30, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management AdequateExecution is exceptional at the top line: FY2026 revenue $39.1B, +77.8% y/y, 3-year CAGR 76.3%, net income $2.23B and ROIC 32.0%, but gross margin slid to 10.8% from 18.0% in FY2023.
- Credibility MediumRevenue guidance has swung violently: Q2 FY2026 came in at $12.68B versus $10.0B-$11.0B guided, but Q3 FY2026 was $10.24B against 'at least $12.3B', and Q1 FY2026 was cut mid-quarter to about $5B from $6B-$7B.
Of 13 guided figures checked: 7 beat, 4 in range, 2 missed.
Valuation range
Implied value per share · Price when researched: $38.59
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.