Micron Q4 Revenue Soars 4x to $54.2B, Guides Q1 to $61.5B
MU has more than doubled off its 52-week low of $163.96.
Summary
Micron delivered a massive Q4 beat with revenue of $54.23B (vs $51.07B expected) and adjusted EPS of $33.42 (vs $31.61 expected), driven by a 343% surge in DRAM revenue to $39.8B. The company guided FQ1-27 revenue to $61.5B and adjusted EPS to $38.15, both well above consensus. Net income climbed to $37.7B from $3.2B a year ago. Management struck a confident tone on the memory cycle, expecting supply-demand conditions to tighten further in fiscal 2027-2028. The company now has 26 long-term supply agreements totaling $32B, up from 16 in June, representing over 35% of expected revenue through 2030. Gross margin is expected to dip slightly to 86.3% this quarter due to higher incentive compensation, but management called this the low point. Capital spending guidance of ~$25B for the first half includes ~$11.5B this quarter as Micron builds two new HBM campuses. This follows the Q3 beat in July and the $250B U.S. investment announcement, reinforcing the AI-driven memory supercycle.
Updates
· Wiseek News — Micron shares moved around 1% after hours to about $1,069 following the results.
- Q4 revenue was $54.23 billion, up from $11.32 billion a year earlier.
- Adjusted EPS was $33.42, rising from $3.03 last year.
- Adjusted gross margin expanded to 87% from 45.7% a year earlier.
- Adjusted operating margin reached 82.3%.
- Operating cash flow was $43.97 billion.
- Adjusted free cash flow was $33.2 billion.
- Full-year revenue reached $133.2 billion.
- Q1 revenue guidance is $61.5 billion, plus or minus $1.5 billion.
- Q1 revenue consensus was $57 billion.
- Q1 adjusted earnings guidance is $38.15 per share, plus or minus $1.
- Q1 adjusted earnings consensus was $35.40 per share.
- Long-term supply agreements rose from $22 billion in June to $32 billion.
- Most long-term supply agreements were provided as cash deposits.
- Strategic agreements extend as far as 2031.
- Remaining performance obligations jumped from roughly $100 billion to $150 billion.
- Micron spent $10.8 billion on capital expenditure during the quarter.
- Micron spent $27.4 billion on capital expenditure for the full year.
- Annual capital spending could exceed $50 billion.
- Higher startup expenses and research investment will raise costs.
- Margins are expected to improve after Q1 as pricing continues to rise.
At the time of this announcement, MU was trading at $1,069.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.2T. The 52-week trading range was $163.96 to $1,255.00. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Binance News.