Super Micro surges 16% premarket after raising Q4 FY26 gross margin outlook to 15%-17%

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Summary

• Super Micro Computer (SMCI) surges 16% premarket after raising Q4 gross margin outlook to 15%–17%, well above prior guidance.
• SMCI's Q4 FY26 revenues are expected near the low end of $11B–$12.5B guidance, with consensus at $11.73B.

Download this episode on Apple Podcasts / Spotify or listen below:

• Super Micro (SMCI) rockets higher. (00:14)
• The clock is ticking for generic drug imports. (01:14)
• Nike's (NKE) China strategy shift. (02:06)

This is an abridged transcript.

Super Micro Computer (SMCI) Surges on Preliminary Guidance

Super Micro Computer (SMCI) shares are up 16% in premarket action after providing fourth-quarter preliminary guidance and raising its gross margin outlook. SMCI also rose 7% on Tuesday.

The company said revenues for the fourth quarter of fiscal year 2026 are estimated to be near the low end of guidance of $11 billion to $12.5 billion. Consensus for fourth-quarter revenue is $11.73 billion.

Super Micro Computer stated that GAAP and non-GAAP gross margins are estimated to be in the range of 15% to 17%, higher than its guidance of 8.2% to 8.4%, primarily due to a favorable customer and product mix.

Backlog rose to record levels at the end of fiscal 2026, with total new orders in excess of $60 billion received during the fourth quarter of fiscal 2026. These new orders are expected to be delivered over future quarters.

Trump Outlines Tariff Plan for Generic Drug Imports

President Trump on Tuesday said generic drugs imported into the U.S. will face zero tariffs for two years starting August 1. After that, a 100% levy takes effect in August 2028 and rises to 200% a year later.

The phased schedule is intended to push generic drugmakers to move production onshore. Trump said in a social media post Tuesday, describing the escalation as "a penalty" for companies that don't build plants and facilities in the U.S. within the grace period.

Tariffs on patented and branded drugs will remain the same.

In a series of agreements with the Trump administration, over a dozen major pharmaceutical firms, such as Eli Lilly (LLY), Pfizer (PFE), and Novo Nordisk (NVO), have committed to cutting prices across their existing and pipeline drug portfolios.

Nike Overhauls China Strategy

Nike (NKE) announced that it will cut ties with thousands of online distributors in China starting in January.

Starting next year, Nike's online footprint will shift primarily to the retailer's official website and app and the storefronts it operates on Tmall, JD.com (JD), and Douyin, some of China's largest online marketplaces and social platforms.

The change is expected to hurt Nike's brick-and-mortar partners in the region, which have expanded their online presence recently to grow their businesses.

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