Micron Technology Delivers Record Q4 Results, Forecasts Strong Growth on AI Boom

Key Takeaways

Micron Technology delivered exceptional fourth-quarter results on Tuesday, significantly beating Wall Street expectations as artificial intelligence applications drive demand for high-performance memory chips.

The Boise, Idaho-based company posted record quarterly revenue while providing optimistic guidance that sent shares higher in after-hours trading.

Strong Q4 performance exceeds expectations

Micron reported revenue of $11.32 billion versus $9.30 billion for the prior quarter and $7.75 billion for the same period last year, surpassing analyst expectations of $11.22 billion.

The company achieved non-GAAP net income of $3.47 billion, or $3.03 per diluted share, well above the expected $2.86 per share.

"Micron closed out a record-breaking fiscal year with exceptional Q4 performance, underscoring our leadership in technology, products, and operational execution," said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology.

The company's gross margin expanded to 45.7% on a non-GAAP basis, up from 39.0% in the previous quarter.

For the full fiscal year 2025, Micron achieved revenue of $37.38 billion versus $25.11 billion for the prior year, representing growth of nearly 50%. The company generated operating cash flow of $17.53 billion versus $8.51 billion for the prior year.

AI drives high-bandwidth memory surge

The standout performer in Micron's portfolio was high-bandwidth memory (HBM), a specialized type of DRAM essential for AI applications.

In fiscal fourth quarter, Micron's HBM revenue grew to nearly $2 billion, implying an annualized run rate of nearly $8 billion, CEO Sanjay Mehrotra said in prepared remarks.

Efforts to build the most sophisticated AI models and expand the data center infrastructure that they run on has boosted demand for Micron's high-bandwidth memory chips, or HBM.

The company is positioning itself as a key supplier to Nvidia and other AI chip manufacturers, as much of the competition among the world's largest memory suppliers, Micron, SK Hynix and Samsung, has centered on becoming a key supplier to Nvidia, owing to the world's most valuable company's dominant market position.

"As the only U.S.-based memory manufacturer, Micron is uniquely positioned to capitalize on the AI opportunity ahead," Micron CEO Sanjay Mehrotra said in a statement.

Robust guidance points to continued growth

Looking ahead to the first quarter of fiscal 2026, Micron provided guidance that significantly exceeded Wall Street expectations.

The company forecast first-quarter sales of $12.50 billion, plus or minus $300 million, compared with the analysts' average estimate of $11.94 billion, according to data compiled by LSEG.

Perhaps even more impressive, Micron also forecast adjusted gross margin of 51.5%, far above estimates of 45.9%.

"The significantly higher gross margin outlook was the key criteria for investors," said Kinngai Chan, an analyst at Summit Insights. "Pricing is better than expected."

Business unit performance shows AI impact

Micron's new segment reporting structure reveals the dramatic impact of AI on different parts of its business.

The Cloud Memory Business Unit, which serves data centers, reported revenue of $4.54 billion versus $3.39 billion for the prior quarter and $1.45 billion for the same period last year, demonstrating the explosive growth in AI-related demand.

However, the traditional data center business showed a different pattern, with the Core Data Center Business Unit reporting revenue of $1.58 billion versus $1.53 billion for the prior quarter and $2.05 billion for the same period last year, reflecting the shift toward specialized AI workloads.

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