Micron Technology Inc (NASDAQ:MU) Surges on Strong Q4 Earnings and Robust AI-Driven Outlook

Micron Technology Inc (NASDAQ:MU) Reports Strong Q4 Fueled by AI Demand, Provides Robust Outlook

Recent Performance

Micron Technology Inc (NASDAQ:MU) concluded its fiscal 2025 with a powerful fourth quarter, demonstrating significant momentum driven by demand from artificial intelligence data centers. The memory and storage solutions provider reported revenue of $11.32 billion, a substantial increase compared to the $7.75 billion recorded in the same period last year. This performance, however, came in slightly below analyst expectations, which were set at approximately $11.54 billion.

The company’s bottom-line results were more impressive. Non-GAAP earnings per share (EPS) reached $3.03, surpassing the consensus estimate of $2.94. This earnings beat highlights improved profitability, underscored by a non-GAAP gross margin of 45.7% for the quarter, a significant expansion from 36.5% in the prior-year period.

The market's reaction in after-hours trading was decisively positive, with the stock surging. This indicates that investors are focusing on the strong earnings beat and the company's optimistic forward guidance rather than the minor revenue miss.

Quarterly Results vs. Estimates

The following breakdown compares Micron's key Q4 fiscal 2025 results against Wall Street's projections:

• Revenue: $11.32 billion reported vs. $11.54 billion estimated (a slight miss of 1.9%)
• Non-GAAP EPS: $3.03 reported vs. $2.94 estimated (a beat of approximately 3%)
• Key Profitability Metrics:
  • GAAP net income for the quarter was $3.20 billion, a dramatic improvement from $887 million in Q4 fiscal 2024.
  • Operating cash flow was strong at $5.73 billion.

Business Outlook and Comparison to Estimates

Perhaps the most critical driver of the positive market sentiment was Micron's guidance for the first quarter of fiscal 2026. The company provided an outlook that far exceeds current analyst expectations, signaling confidence in continued growth.

The company forecasts revenue of $12.50 billion, plus or minus $300 million. This guidance is notably higher than the analyst sales estimate of $12.21 billion for Q1 2026. Furthermore, Micron anticipates non-GAAP gross margins to expand further to approximately 51.5%, crossing the symbolic 50% threshold.

• Q1 2026 Revenue Guidance: $12.50 billion ± $300 million vs. Analyst Estimate of $12.21 billion.
• Q1 2026 Non-GAAP EPS Guidance: $3.75 ± $0.15.

For the full fiscal year 2026, analysts have been estimating sales of $50.53 billion. Micron's strong Q1 outlook and commentary around AI-driven demand suggest the company is on a path to meet or potentially exceed these annual projections.

Press Release Summary

The earnings report underscored a record-breaking fiscal year for Micron, with full-year revenue reaching $37.38 billion. CEO Sanjay Mehrotra attributed the success to the company's leadership in technology and its strategic position as the only U.S.-based memory manufacturer, allowing it to capitalize on the AI boom. The press release highlighted exceptional growth across its business units, particularly the Cloud Memory Business Unit, which saw revenue soar to $4.54 billion with an operating margin of 48%. The company also emphasized its solid financial position, ending the year with a robust cash balance.

Conclusion

Micron Technology's fourth-quarter earnings depict a company riding a powerful wave of AI-related demand. While revenue slightly missed expectations, a significant earnings beat and, more importantly, exceptionally strong forward guidance have reassured investors about the company's growth trajectory. The market's positive reaction reflects confidence that Micron's strategic focus on high-performance memory for data centers will continue to drive profitability in the coming quarters.

For a more detailed look at historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security.