- Micron reported fiscal fourth-quarter revenue of $54.23 billion, beating estimates of $51.07 billion, and adjusted EPS of $33.42 vs. $31.61 expected.
- The company forecast first-quarter revenue of $61.5 billion, above analysts' estimate of $57.02 billion, and adjusted EPS of $38.15 vs. $35.40 expected.
- CEO Sanjay Mehrotra announced customers increased long-term supply commitments to $32 billion, signaling unabated demand for AI memory chips.
- CFO Mark Murphy stated that remaining performance obligations rose to about $150 billion, up from roughly $100 billion reported last quarter.
- Micron expects fiscal 2027 to be another record year with sequential revenue growth each quarter, and plans to increase capital spending to add capacity.
Micron Technology reported a remarkable fiscal fourth quarter, with revenue soaring to $54.23 billion, more than quadrupling from $11.32 billion a year earlier and surpassing estimates of $51.07 billion. Adjusted profit reached $33.42 per share, exceeding expectations of $31.61.
CEO Sanjay Mehrotra highlighted the company's robust demand for AI memory chips, stating, "Certainly memory is the chief constraint in AI... The data center has become the largest market for memory and storage." The company anticipates first-quarter revenue of $61.5 billion, significantly above the $57 billion expected by analysts.34
Micron's backlog has swelled to $32 billion in long-term supply agreements, with remaining performance obligations rising to $150 billion, up from $100 billion last quarter. This surge reflects the ongoing demand for high-bandwidth memory (HBM), essential for AI infrastructure.6
The company has seen its stock soar over 500% in the past year, driven by a global supply crunch for memory chips. Net income climbed to $37.7 billion, or $32.87 per share, from $3.2 billion, or $2.83 per share, a year ago. Micron is investing $250 billion to expand its HBM production capabilities, with new campuses underway in New York and Idaho.
"At this point, I have not heard any negative data points pointing to the memory cycle reversing toward a decline anytime soon for the foreseeable future," said Hendi Susanto from Gabelli Funds.
“Micron's long-term supply commitments jumped to $32 billion, with remaining performance obligations rising to about $150 billion, signaling robust AI memory demand. The company expects fiscal 2027 to be another record year, with sequential revenue growth each quarter, and plans to increase capital spending to add capacity.”
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