SMCI Stock Jumps 6% on $60B Backlog Disclosure, But $1.3B Cash Raises Capital Concerns

On Thursday, Super Micro Computer (SMCI) stock surged over 6% following the release of its preliminary Q4 FY2026 results, revealing a massive $60 billion order backlog. However, according to Mizuho analyst Vijay Rakesh, the company's balance sheet presents a challenge: with only $1.3 billion in cash, SMCI may require near-term capital raises to fulfill the massive orders.

The server provider's June-quarter revenues tracked near the lower end of its $11.0 billion to $12.5 billion guidance due to component shortages and construction delays, but gross margins outperformed expectations at 15 to 17%, far exceeding initial guidance of 8.2 to 8.4 percent. Mizuho maintained a Neutral rating while trimming its price target to $34 from $44.