Super Micro Computer reported its third-quarter fiscal year 2025 financial results, with net sales of $4.60 billion, marking a 19.5% increase year-over-year but a 19% sequential decline from Q2 FY25. The company's gross profit fell to $440.2 million, a 26.3% decrease year-over-year, resulting in a gross margin of 9.6%, down sharply from 15.5% in Q3 FY24. Net income plummeted by 73% to $108.8 million, with GAAP diluted EPS of $0.17 and non-GAAP diluted EPS of $0.31.
Management attributed the sequential dip in revenue primarily to customers delaying platform decisions as they evaluated solutions between the current Hopper and upcoming Blackwell GPU generations, leading to delayed commitments. Margin contraction was driven by competitive pricing, increased competition, a shift towards modular system designs, changes in customer mix, higher inventory reserves for older generation GPUs ($125.1 million), and expedited costs for new products.
For the full fiscal year 2025, Super Micro updated its revenue guidance to a range of $21.8 billion to $22.6 billion, a downward revision from earlier forecasts. The company also provided Q4 FY25 guidance, expecting net sales between $5.6 billion and $6.4 billion, and non-GAAP diluted net income per share between $0.40 and $0.50. This earnings report highlights significant pressures on profitability and a more cautious near-term outlook.
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