Netflix forecasts profit below estimates, shares fall more than 5%
The streaming company also lowered its 2026 advertising outlook after some ad features took longer than expected to roll out.
Super Micro lifts quarterly revenue outlook above Wall Street estimates
The server maker also raised its gross margin forecast to 12% to 12.5%, citing its customer and product mix.
Super Micro Computer said on October 20 that it now expects first-quarter revenue of $18.5 billion to $19.5 billion, exceeding its previous outlook and Wall Street expectations. The company said it was benefiting from demand for AI data centers.
The revised projection compares with an earlier revenue forecast of $14.5 billion to $15.5 billion. The average analyst estimate compiled by LSEG was $15.23 billion.
The company put its gross margin forecast at 12% to 12.5%, above both the 10.4% to 10.8% it previously expected and the analyst estimate of 10.15%. Super Micro attributed the revision primarily to its mix of customers and products.
Super Micro shares rose 11.3% in after-hours trading following the announcement. Rival server makers Dell and HPE gained between 3.5% and 4.9%, and Nvidia advanced 1.5%.
The forecast came after a selloff in shares linked to AI data-center construction. CoreWeave’s stock and bond declines, alongside the prospect of higher interest rates, had triggered concerns about how long heavily indebted operators would take to generate returns.
Separately, Super Micro appointed Mark Long, a former Western Digital executive, as chief financial officer. Its search had begun nearly two years earlier amid scrutiny of its accounting and financial practices.