Stock Analysis on Net
Stock Analysis on Net

Super Micro Computer Inc. (NASDAQ:SMCI)

$24.99

Operating Profit Margin
since 2007

Microsoft Excel

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Calculation

Super Micro Computer Inc., operating profit margin, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30).

1 US$ in thousands


The financial trajectory of the organization is characterized by an unprecedented escalation in net sales accompanied by significant volatility in operating profit margins. While revenue has grown from approximately 420 million USD in 2007 to a projected 39 billion USD by 2026, the operating margin has not followed a linear growth path, instead exhibiting cyclical fluctuations and periods of compression.

Revenue Scaling and Volume Growth
A period of steady growth occurred between 2007 and 2021, after which the organization entered a phase of hyper-growth. Net sales increased from 3.56 billion USD in 2021 to 14.99 billion USD in 2024, with further projections indicating a rise to 39.06 billion USD by 2026. This suggests a massive expansion in market share or product demand.
Operating Margin Compression (2012–2020)
Between 2012 and 2020, a consistent downward trend in operating efficiency was observed. The operating profit margin declined from 4.54% in 2012 to a low of 2.34% in 2013, remaining suppressed below 3% for much of the period between 2018 and 2020. This indicates a period where operating expenses grew faster than gross profits or where pricing pressures limited profitability.
Profitability Recovery and Peak (2021–2023)
A sharp reversal in margin trends occurred starting in 2021, with the operating profit margin climbing from 3.48% to a peak of 10.68% by June 30, 2023. This peak represents the highest operational efficiency in the analyzed period, coinciding with the initial stages of the most aggressive revenue growth phase.
Recent Margin Stabilization (2024–2026)
Following the 2023 peak, the operating profit margin experienced a contraction to 8.08% in 2024 and further to 5.70% in 2025. However, projections for 2026 suggest a slight recovery to 7.09%. This pattern suggests that the rapid scaling of operations may have introduced temporary inefficiencies or higher costs of goods sold, which the organization is subsequently working to optimize.
Income from Operations Correlation
Despite the volatility in percentage margins, the absolute income from operations has increased substantially. Income from operations rose from 29.9 million USD in 2007 to a projected 2.77 billion USD by 2026. The divergence between the explosive growth in absolute profit and the fluctuating margin percentage indicates that growth is being driven primarily by sheer volume rather than improved operational leverage.

Comparison to Competitors

Super Micro Computer Inc., operating profit margin, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30).