Micron Technology (MU) posted $54.23 billion in revenue for its fiscal fourth quarter ended Sept. 3, representing a 379% year-over-year surge driven by explosive artificial intelligence data center demand. The memory chip maker cleared Wall Street analyst estimates of $51.07 billion by more than $3 billion, while projecting Q1 FY27 revenue of $61.5 billion.
Data Center Growth and Financial Highlights
Adjusted earnings per share reached $33.42, beating consensus estimates of $31.61. GAAP net income jumped to $37.70 billion, up from $3.20 billion in the prior-year quarter. Profitability expanded sharply as Micron retained 87 cents of every sales dollar after production costs, yielding an adjusted gross margin of 87.0% compared to 46% a year ago and beating expectations of 86.1%.
Key segment and forward guidance figures include:
- Core Data Center revenue grew to $18 billion, up from $1.58 billion a year earlier.
- Cloud Memory brought in $16.28 billion during the quarter.
- Customers deposited $12.75 billion under long-term supply contracts in fiscal 2026, with most arriving in Q4.
- Q1 FY27 revenue guidance was set at $61.5 billion ± $1.5 billion, exceeding estimates of $57.02 billion.
Supply Contracts and Investor Skepticism
CEO Sanjay Mehrotra stated that the company's "Strategic Customer Agreements provide added confidence in the durability of Micron's financial performance." For Q1 FY27, Micron projected adjusted EPS of $38.15 ± $1.00 against Wall Street forecasts of $35.40, though its gross margin guidance of 86.25% trailed the 86.4% estimate.
Despite the earnings beat, Micron stock (MU) saw minimal movement, closing at $1,065.08 and trading up 0.36% to $1,068.90 in after-hours trading. Skepticism remains as "Big Short" investor Michael Burry disclosed put options on Micron, echoing broader tech volatility after Michael Burry called for market crash risks and analysts warned that data center growth faces broader headwinds.
Why It Matters
Micron’s financial surge underscores how hardware demand for AI infrastructure remains intact, with data center operators committing massive cash upfront to secure memory supply. However, the contrast between Micron’s 379% revenue expansion and its stagnant stock price highlights growing market anxiety over valuation caps and capital deployment durability. Investors will be closely watching whether customer advance deposits translate into multi-year margin sustainability or represent a temporary front-loading of hardware demand.
