Micron Earnings: AI-Driven Memory Cycle Remains Strong
Micron Technology MU delivered another monster quarter, with its latest results reinforcing just how powerful the AI-driven memory cycle has become.
Micron Earnings Reveal Huge Growth
Q4 revenue reached a record $54.2 billion, up 31% sequentially and 379% year over year. Adjusted EPS came in at $33.42, topping the Zacks Consensus estimate of $31.61 by nearly 6%. Cash generation was similarly massive, with operating cash flow reaching $44 billion and adjusted free cash flow coming in at $33.2 billion during the quarter.
Pricing remained a major tailwind, as DRAM revenue climbed 27% sequentially to a record $39.8 billion, while NAND revenue jumped 42% to $14.1 billion, both beating our consensus estimates handily. The strong pricing environment helped push its adjusted gross margin to an impressive 87%.
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Importantly, visibility remains strong. Micron has already completed agreements for the vast majority of its calendar 2027 HBM bit supply at significantly higher year-over-year pricing. The company also has 26 strategic customer agreements that it expects will account for more than 35% of revenue through 2030.
And the outlook suggests momentum remains firmly intact. Micron expects fiscal Q1 revenue of $61.5 billion at the midpoint, alongside adjusted EPS of $38.15. Management also expects sequential revenue growth in every quarter of fiscal 2027 and sees DRAM and NAND markets remaining supply-constrained throughout calendar 2027 and 2028.
Bottom Line
Micron’s MU latest release strengthened the AI growth story significantly. Record revenue, powerful pricing, strong HBM visibility, and massive cash generation all stood out.
Perhaps most importantly, management’s outlook suggests the cycle still has room to run, with tight supply conditions and AI-driven demand providing a highly favorable backdrop heading into fiscal 2027.
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This article originally published on Zacks Investment Research (zacks.com).
