Overview
- Fiscal Q1 2026 revenue was $5.02 billion and adjusted EPS $0.35, both below estimates and down from a year earlier.
- Management said customer-requested configuration changes on GPU racks deferred roughly $1.5 billion of expected Q1 sales into the current quarter.
- The company guided Q2 revenue to $10–$11 billion and lifted full‑year sales to at least $36 billion, with EPS guidance for Q2 below consensus.
- Gross margin hovered around 9.3%–9.5% as executives pointed to a low‑margin mega design win and costly ramp of complex Nvidia GB300 rack platforms, with no firm timeline for margin recovery.
- Shares fell about 8%–10% following the report; analysts cut targets, citing the sixth straight miss, execution risk on large rack builds, and reliance on a roughly $13 billion Nvidia‑linked order book.