TLDR
- Micron reported Q4 adjusted earnings of $3.03 per share, beating analyst expectations of $2.86
- Revenue hit $11.3 billion, exceeding forecasts and marking a 46% annual increase
- AI data center demand drove 40% of total revenue, up from 19% last year
- Stock jumped 1.7% in after-hours trading following the earnings beat
- Company provided strong Q1 guidance with revenue expected between $12.2-$12.8 billion
Micron Technology delivered another strong quarter Tuesday, crushing Wall Street expectations as artificial intelligence demand continued to power the memory chipmaker’s growth.
Micron Technology, $MU, Q4-25. Results:
📊 Adj. EPS: $3.03 🟢
💰 Revenue: $11.32B 🟢
📈 Net Income: $3.20B
🔎 Record revenue fueled by AI data center demand, with forecasted margins above 50%. pic.twitter.com/y9amD6dNDK— EarningsTime (@Earnings_Time) September 23, 2025
The Idaho-based company reported fourth-quarter adjusted earnings of $3.03 per share. This easily topped analyst estimates of $2.86 and represented a massive jump from $1.18 in the same period last year.
Revenue reached $11.3 billion for the quarter ending August 28. The figure surpassed expectations of $11.2 billion and marked a 46% increase from the previous year.
Micron’s stock rose 1.7% in after-hours trading following the results. The shares briefly climbed around 2% in premarket trading Wednesday, hitting $171.50 and surpassing the company’s recent all-time high.
The earnings beat marked another quarterly sales record for Micron. In August, the company had already raised its fourth-quarter guidance from earlier projections, and Tuesday’s results exceeded even those boosted expectations.
AI Demand Transforms Business Mix
The star of Micron’s performance was its high-end memory products used in AI data centers. Revenue from this segment jumped to 40% of total company sales in the quarter, up dramatically from just 19% in the same period last year.
“We have strong momentum entering fiscal 2026, with a robust fiscal Q1 demand outlook led by data center,” CEO Sanjay Mehrotra said during the earnings call. He added that the company holds “the most competitive position in our history.”
Mehrotra painted an optimistic picture for the memory industry’s AI opportunity. “Over the coming years, we expect trillions of dollars to be invested in AI, and a large portion will be spent on memory,” he explained.
The AI boom has fundamentally changed how investors view Micron’s business. Memory companies typically face sudden swings in demand and pricing, creating cyclical ups and downs in sales and earnings.
But the current AI-driven cycle has already lasted two years. That’s roughly the length of most memory cycles, yet demand shows no signs of slowing down.
Strong DRAM Performance Drives Results
Micron’s DRAM segment led the revenue beat Tuesday. These dynamic random access memory chips are used for short-term storage in everything from personal computers to AI data centers.
DRAM revenue jumped nearly 70% from the previous year to hit $8.98 billion in the fourth quarter. This exceeded analyst projections of $8.55 billion.
The company’s high bandwidth memory (HBM) chips proved particularly crucial. These products stack multiple DRAM semiconductors vertically and work alongside graphics processing units in AI systems.
Nvidia accounts for 16% of Micron’s revenue on an annualized basis. The AI chip giant’s continued growth has helped propel Micron’s business to new heights.
Meanwhile, Micron’s NAND segment faced some headwinds. Revenue from these long-term storage chips fell roughly 5% from the year-ago period to $2.25 billion, missing analyst forecasts of $2.35 billion.
However, chief business officer Sumit Sadana expressed optimism about NAND’s future prospects. “AI also uses NAND in a pretty meaningful way,” he noted, adding that data center customers are starting to increase their NAND purchases.
Guidance Points to Continued Strength
Micron provided strong guidance for its 2026 fiscal first quarter. The company expects revenue between $12.2 billion and $12.8 billion, well above analyst expectations of $11.9 billion.
Adjusted earnings per share should fall between $3.60 and $3.90 for the first quarter. This guidance also topped analyst projections of $3.05.
The outlook reflects Micron’s confidence in sustained AI demand. TD Cowen analyst Krish Sankar raised his price target to $180 from $150, noting that memory prices should increase in coming quarters.
Ten analysts have raised their price targets in just the past week. The average price target now sits at $166.44, with shares trading at $164.62 after gaining 38% in September.
Micron’s stock has surged roughly 97% this year, far outpacing the 18% average gain across major tech stocks. The DRAM market grew 83% to $95 billion in 2024, with Micron holding a 35% market share according to Deutsche Bank.
The company announced in June that it would invest $200 billion in its US memory chipmaking facilities. As the only US-based memory manufacturer, Micron is positioning itself to capture more AI infrastructure spending in the coming years.
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