Micron posts record Q4 earnings and raises Q1 outlook amid investor caution
Micron Technology reported fiscal fourth‑quarter adjusted earnings of $33.42 per share, a 1,003% year‑over‑year increase, and revenue of $57.4 billion. The company forecast Q1 adjusted EPS of $37.15‑$39.15 and revenue of $60.0‑$63.0 billion, above consensus estimates. Management highlighted strong AI‑driven demand, higher DRAM and NAND prices, and secured 26 take‑or‑pay agreements covering more than 35% of projected revenue through 2030, with $150 billion of performance obligations and $32 billion of customer financial commitments remaining. Investors remain wary because the earnings surprise was smaller than expected and costs are rising, which could pressure margins in the near term.
Why it matters
The company expects Q1 margins to fall about 75 basis points due to roughly $1 billion of additional costs, which may affect short‑term profitability. However, the raised guidance and long‑term take‑or‑pay contracts give investors greater visibility on future cash flow.
Key facts
- 1Fiscal Q4 adjusted earnings were $33.42 per share, up 1,003% YoY. investors.com
- 2Fiscal Q4 revenue was $57.4 billion. gurufocus.com
- 3Q1 adjusted EPS is projected between $37.15 and $39.15. gurufocus.com
- 4Q1 revenue is expected to range from $60.0 to $63.0 billion. gurufocus.com
- 5Gross margin is anticipated to decline by 75 basis points sequentially to about 86.25% in Q1. gurufocus.com
- 6Micron secured 26 take‑or‑pay strategic customer agreements covering more than 35% of projected revenue through 2030, with $150 billion of remaining performance obligations and $32 billion of customer financial commitments. gurufocus.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.