Regulators say the company is not a defendant or target in a grand jury probe, with ongoing internal and external investigations but no current indication of additional employee involvement; no earnings restatement expected; Q3 GAAP EPS $0.72 and non-GAAP EPS $0.84.

Risks include continued supply-chain constraints, rising net debt and negative free cash flow, revenue-recognition delays due to customer readiness, and ongoing regulatory investigations with potential compliance or reputational risks.

Non-GAAP gross margin expanded to 10.1% from 6.4% last quarter, a 58% sequential improvement driven by favorable product mix, lower tariffs, and reduced charges.

Guidance for Q4 FY2026 projects net sales of $11 billion to $12.5 billion, GAAP EPS $0.53-$0.67, non-GAAP EPS $0.65-$0.79, gross margin of 8.2%-8.4%, capex $30-$50 million; full-year net sales guidance remains $38.9-$40.4 billion.

CEO Charles Liang cited expanding U.S. manufacturing, strong demand in near-cloud and generative AI segments, and a strategic shift toward becoming a total data center solutions provider with DCBBS driving margin and growth; CFO David Weigand noted backlog strength and potential for deferred revenue to be recognized.

Super Micro Computer, Inc. reported Q3 FY2026 revenue of $10.2 billion, up 123% year over year but down 19% from the prior quarter, driven by AI GPU-related platforms that now account for over 80% of revenue.

Liang credited margin gains and growth to a scalable business model and the expanding Data Centre Building Block Solutions, with new U.S. manufacturing sites giving the company a competitive edge to meet AI hardware demand.

Backlog reached a record high as enterprise revenue was $2.8 billion (28%) and OEM/data center segment was $7.4 billion (72%), with deferred revenue expected to be recognized as sites come online.

Most customers remain confident about continuing business, and long-term vendor relationships with NVIDIA, AMD, Intel, Broadcom, and others are reaffirmed; DCBPS software and services are expected to drive future profitability.

The company faces legal headwinds from export-rule allegations against co-founder Yih-Shyan Liaw; Super Micro is cooperating with investigations, Liaw is on leave, and a new chief compliance officer has been appointed.

AI and software growth: DCBPS-related software revenue rose to $46 million this quarter, and the segment is expected to contribute at least 20% of net income in coming years.

Geographic mix shows the U.S. accounting for 69% of revenue, with Asia 13%, Europe 7%, and Rest of World 11% (Rest of World grew 392% quarter over quarter).