Micron earnings: AI-Driven memory cycle remains strong

Key takeaways

• MU earnings were again impressive, with the company delivering huge growth.
• The AI-driven memory cycle remains robust, with its outlook eluding to continued positivity.

Micron Technology (MU Quick QuoteMU - Free Report) 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.