San Jose, California-based Super Micro Computer, Inc. (SMCI) develops and manufactures high-performance server and storage solutions based on modular and open architecture. With a market cap of $19.9 billion, Super Micro’s operations span the United States, Europe, Asia, and internationally.

The tech major is expected to announce its third-quarter results on Tuesday, Apr. 29. Ahead of the event, analysts expect SMCI to report an adjusted EPS of $0.38, down a staggering 42.4% from $0.66 reported in the year-ago quarter. While SMCI has missed Street’s bottom-line projections once over the past four quarters, it has surpassed the estimates on all other occasions.

For the full fiscal 2025, SMCI is expected to deliver an adjusted EPS of $2.18, up 8.5% from $2.01 reported in fiscal 2024. Meanwhile, in fiscal 2026, its earnings are expected to grow 9.6% year-over-year to $2.39 per share.

SMCI stock prices have tanked 67.3% over the 52 weeks, significantly underperforming the Technology Select Sector SPDR Fund’s (XLK) 3.9% dip and the S&P 500 Index’s ($SPX) 4.4% uptick over the same time frame.

The drop in SMCI’s stock price over the past year was primarily fueled by corporate governance failures at the company, which shattered investor confidence. Nonetheless, Super Micro Computer’s stock gained 12.2% in the trading session after the release of its Q2 2025 10Q filings on Feb. 25. The company’s net sales for the quarter increased 54.9% year-over-year to $5.7 billion. Meanwhile, SMCI observed an even faster increase in the cost of sales and operating expenses, which led to a massive gross and operating margin contraction during the quarter. Despite the massive growth in sales, its income from operations dipped 76 bps compared to the year-ago quarter to $368.6 million.

On a more positive note, the company observed a notable improvement in cash flows. Its cumulative operating cash flow for the past two quarters increased to $169.1 million, up from the $324.6 million outflow recorded during the same period in the previous fiscal. However, SMCI stock plummeted nearly 16% in the following trading session.

The consensus view on SMCI is neutral, with a “Hold” rating overall. Of the 15 analysts covering the stock, opinions include four “Strong Buys,” two “Moderate Buys,” seven “Holds,” and two “Strong Sells.” As of writing, the stock is trading notably below its mean price target of $55.70.