Micron beats expectations in quarterly results

Micron beat market forecasts in its fiscal fourth quarter, showing it continues to benefit strongly from demand for memory used in AI infrastructure. The company’s shares edged higher in after-hours trading following the results.

According to the company, quarterly revenue nearly quadrupled from $11.32 billion in the same period last year. Net profit rose from $3.2 billion a year earlier to $37.7 billion, while earnings per share increased from $2.83 to $32.87.

Micron said it expects revenue of about $61.5 billion and adjusted earnings of $38.15 per share in the fiscal first quarter. Analysts polled by LSEG (London Stock Exchange Group) had expected $57 billion in revenue and earnings of $35.40 per share.

Data center and HBM demand drive growth

Performance was driven by a sharp increase in demand for memory chips needed for servers running AI workloads. Micron said its data center revenue increased 11-fold, while a global supply squeeze also pushed up memory prices.

Micron is the only U.S.-based company producing high-bandwidth memory, or HBM. In the fiscal fourth quarter, DRAM revenue rose 343% year on year to $39.8 billion and accounted for 73% of total sales.

Hendi Susanto, portfolio manager at Gabelli Funds, said after the announcement that he saw no signs of near-term weakness in the memory cycle.

“Another strong beat and raise for Micron.”

Investment plans and competition

The company is building two new manufacturing campuses with $250 billion in investment to meet rising HBM demand. Ground was broken in January at the Clay site in New York state, while the first new plant in Boise, Idaho, is scheduled to come online next year.

Micron CEO Sanjay Mehrotra said the company has a strong roadmap for future HBM products and is working with Nvidia on the industry’s first custom HBM application. Rivals SK Hynix and Samsung are also building new HBM facilities in South Korea, and although Micron has a smaller share of that trio’s market, its market value has climbed above $1.2 trillion.

Market impact and key points to watch

  • Micron shares have risen by more than 500% over the past 12 months.
  • HBM and DRAM demand is being supported by AI investment, especially around advanced processors from Nvidia and AMD.

The company also said it raised pay for all employees in fiscal 2026. However, hundreds of workers at its factories in Taiwan were reported to be threatening to strike over wage and working-condition talks.