TLDR
- Micron jumps after hours as record Q3 revenue fuels bullish sentiment.
- AI memory demand drives Micron’s strongest quarterly profit performance.
- MU rebounds as guidance points to stronger revenue in fiscal fourth quarter.
- Data center demand lifts Micron’s margins and after-hours stock rally.
- Micron’s HBM shipments strengthen its position in the AI memory market.
Micron Technology shares rebounded after hours as record quarterly results highlighted strong demand for advanced memory products. MU rose 6.59% to $1,116.99 after closing 0.37% lower at $1,047.92. The company also issued a stronger fourth-quarter outlook, supported by expanding data center and artificial intelligence demand.
Record Revenue and Profit Lift Micron Stock
Micron reported fiscal third-quarter revenue of $41.46 billion, up sharply from $23.86 billion during the previous quarter. Revenue also increased more than fourfold from $9.30 billion in the same quarter last year. The growth reflected stronger pricing, higher shipments, and rapid demand across memory markets.
GAAP net income reached $28.24 billion, while diluted earnings totaled $24.67 per share. Non-GAAP net income stood at $28.86 billion, with adjusted earnings reaching $25.11 per diluted share. The GAAP gross margin expanded to 84.6% from 74.4% in the prior quarter.
Operating cash flow rose to $25.39 billion, compared with $11.90 billion during fiscal quarter two. Micron invested $7.1 billion in capital expenditures and generated $18.3 billion in adjusted free cash flow. The company ended the period with $30.2 billion in cash, investments, and restricted cash.
AI Memory Demand Strengthens Business Units
Micron’s cloud memory unit generated $13.77 billion in revenue and posted a 78% operating margin. Its core data center unit produced $11.52 billion in revenue, more than doubling sequentially. That division also recorded an 83% operating margin as server memory demand accelerated.
The mobile and client unit reported $11.52 billion in revenue and an 86% operating margin. Automotive and embedded revenue reached $4.63 billion, compared with $2.71 billion during the previous quarter. The unit’s operating margin increased to 75%, reflecting stronger demand and improved pricing.
Micron also expanded production across several high-performance memory and storage products. The company started high-volume HBM4 shipments and sent qualification samples to additional customers. It also advanced HBM4E development, with volume production planned during calendar 2027.
Strong Fourth-Quarter Guidance Supports Rebound
Micron expects fourth-quarter revenue of about $50 billion, with a possible $1 billion variation. The company projects a gross margin near 86% under both GAAP and non-GAAP measures. It also expects adjusted diluted earnings of $31.00 per share, within a $1.00 range.
The guidance signals continued growth as cloud providers and technology companies expand artificial intelligence infrastructure. Micron’s memory products support high-performance computing, data storage, smartphones, vehicles, and connected devices. Rising demand across these markets has increased supply commitments and strengthened long-term customer agreements.
Micron continues to invest in production capacity, new memory technologies, and advanced storage products. The company declared a quarterly dividend of $0.15 per share, payable on July 21. Shareholders recorded by July 6 will qualify for the payment following the record fiscal quarter.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
