Micron Stocks Drop as $61.5 Billion Outlook Meets a High Bar

Micron Technology (MU) reported $150B in future contract obligations, exceeding its $133.2B fiscal 2026 revenue. The agreements cover 35% of estimated revenue through 2030, with customers committed to purchasing agreed amounts. Actual revenue may exceed $150B due to pricing frameworks. The contracts provide Micron with greater visibility into future demand, particularly in the AI-driven memory market.

Micron Technology reported Q4 revenue of $54.23bn and adjusted EPS of $33.42, exceeding expectations. It forecasts Q1 revenue of $61.5bn and adjusted EPS of $38.15, also above estimates. The company attributes this growth to AI-driven demand for high-bandwidth memory (HBM), with long-term contracts providing visibility. Analysts highlight potential share buybacks and sustained margins, though shares fell 1.7% on profit-taking.

Micron (MU) stock fell 1.72% despite record Q4 results, with revenue at $54.2B and EPS at $33.42. Analysts raised targets to $1,250 (GS), $1,400 (Mizuho), and $1,900 (Rosenblatt), while Morningstar cut its target to $700. Management expects tight memory supply through 2028 and strong margins.

Micron Technology (MU) reported record Q4 revenue of $54.23B, up 379% YoY, but CEO Sanjay Mehrotra noted record employee bonuses are pressuring margins. Q1 gross margin is guided at 86.25%, down from 87% in Q4, due to incentive compensation and other costs. Despite strong demand, with over 75% of 2027 output committed, Taiwan workers are voting on a strike over profit-sharing.

Micron shares fell post-earnings despite Jim Cramer calling results strong. Concerns arose over gross margin forecasts and increased production spending. The company reported 26 strategic agreements, up from 16 last quarter. A potential share buyback in December is possible. The broader market declined amid rising Treasury yields and oil prices.

Micron (MU) reported strong Q4 results with revenue of $57.4B and adjusted EPS between $37.15-$39.15 for Q1, exceeding expectations. Despite AI-driven demand, investors are cautious due to lower-than-expected earnings surprise and rising costs. The company anticipates supply constraints until 2028 and has secured long-term customer agreements.