Micron earnings surge on AI memory demand as Q3 revenue more than quadruples

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Micron Q3 earnings surge

Highlights

Micron reports fiscal Q3 revenue of $41.46 billion, exceeding LSEG analyst consensus of $35.84 billion, and posts adjusted EPS of $25.11 versus $20.78 expected.
Q4 revenue guidance issued at about $50 billion—up from $11.3 billion a year ago and above analyst expectations of $43.58 billion—with tight AI-driven memory supply anticipated beyond 2027.
Data center business leads segment growth, with Micron's revenue climbing to $11.5 billion from $1.53 billion, helping drive market capitalization past $1 trillion with the stock up 700% year-over-year.

Quarterly results and forward outlook

As reported by Micron in a statement on Wednesday, the chipmaker posts fiscal third-quarter revenue of $41.46 billion, above the $35.84 billion expected by analysts tracked by LSEG, while adjusted earnings per share reach $25.11 versus estimates of $20.78.

Revenue rises from $9.3 billion a year earlier. For the current quarter, Micron says it expects revenue of about $50 billion, up from $11.3 billion a year earlier and ahead of the $43.58 billion forecast analysts were expecting, according to LSEG. The stock rises about 10% in extended trading.

Net income in the quarter totals $28.24 billion, or $24.46 per share, compared with $1.89 billion, or $1.68 per share, in the year-earlier period. Gross margin climbs to 84.9% from 74.9% in the prior period and 39% a year earlier, topping analyst expectations.

Micron also says it expects tight memory market conditions to persist beyond 2027 because of AI-led demand. The company adds that it has signed 16 long-term agreements with customers including data center operators and automakers, locking in sales for periods of three to five years.

Data center growth strengthens Micron's market position

Demand for memory has surged over the past two years as AI chips consume available production capacity across a relatively small group of suppliers. As data center demand keeps increasing, prices are also rising for memory used in smartphones, laptops and other consumer devices.

All four of Micron's business units post multiplying revenue, led by its core data center business, where sales climb more than sevenfold to $11.5 billion from $1.53 billion a year earlier. In a company presentation, Micron also says data center solid-state drive revenue exceeds $5 billion, while cloud memory revenue jumps more than 300% to $13.77 billion.

The mobile and client business unit records revenue growth of more than 250% to $11.52 billion as device memory pricing improves. Revenue from automotive and embedded applications more than quadruples to $4.63 billion. Micron says shareholders will receive a $0.15 dividend in July.

The performance extends a sharp rerating in the stock, which is up roughly 700% over the past year, pushing the company's market capitalization past $1 trillion. The gains reflect investor expectations that Micron remains a key supplier for AI-related hardware used alongside processors from companies such as Nvidia and Google.

In our earlier MU price analysis ahead of Micron’s fiscal Q3 earnings, we noted that the stock was showing short-term weakness, trading below key moving averages and reflecting cautious sentiment into the results. The piece highlighted elevated event risk around the report, with momentum indicators flashing oversold conditions and key technical levels in focus—resistance near $1,113 and support around $942—as investors waited for clearer guidance on profitability and the forward outlook.

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