Micron Technology Earnings Report: AI Demand Pushes Forecast Above Estimates

Micron Technology has posted stronger-than-expected results for the fourth quarter of fiscal 2025 and issued a revenue forecast for the first quarter of fiscal 2026 that exceeded Wall Street expectations. The surge is fueled by demand for high-bandwidth memory (HBM) chips used in artificial intelligence systems.

The company reported revenue of $11.32 billion in Q4, up 46 percent year-over-year. Non-GAAP adjusted earnings were $3.03 per share, ahead of analyst estimates. Micron also forecast first-quarter revenue of $12.50 billion, plus or minus $300 million, compared with expectations of $11.94 billion.

Micron Technology Earnings Report: Key Highlights

Micron’s HBM revenue reached nearly $2 billion in Q4, according to CEO Sanjay Mehrotra. That figure represents an annual run rate of close to $8 billion. Demand for HBM chips is strong because they power the data processing needs of advanced AI models. The company expects to lock in sales for all of its HBM production through 2026 in the coming months.

Pricing agreements for HBM3E chips are mostly completed, while discussions continue for HBM4. Executives said HBM4 prices will be significantly higher due to tight industry supply. This has helped Micron forecast adjusted gross margin of 51.5 percent, compared with analyst estimates of about 46 percent.

In addition, Micron reported adjusted free cash flow of $803 million in Q4. For the full fiscal year, adjusted free cash flow reached $3.72 billion. The company also confirmed guidance for non-GAAP earnings of $3.75 per share, plus or minus 15 cents, in the upcoming quarter.

Micron supplies HBM chips to Nvidia, the world’s largest AI semiconductor player, which has strengthened its position in the global market. Analysts view this relationship as a major advantage for Micron in the competitive AI-driven chip sector.

Analysis and Industry Impact

Micron’s results underline the transformation of the semiconductor industry by AI demand. By securing multi-year HBM deals and expanding next-generation chip production, the company is ensuring steady returns even in a volatile memory market.

The U.S. government’s $6.2 billion subsidy under the CHIPS and Science Act adds further stability. Micron recently received a disbursement after hitting a key milestone in its Idaho fabrication plant. Executives said no changes to the agreement are expected, despite policy discussions in Washington.

With its Q4 beat, stronger Q1 outlook, and forward bookings, Micron is emerging as one of the most critical suppliers in the AI chip ecosystem. Investors see the strong margins and sustained demand as signals of a favorable cycle for the company.

Overall, the Micron Technology earnings report confirms how central AI has become to its growth. With Q4 results ahead of expectations, improved guidance, and nearly sold-out HBM capacity for 2026, Micron is positioning itself at the core of the global AI supply chain.

FYI (keeping you in the loop)-

Q1: What did Micron report in Q4 2025?

Micron posted revenue of $11.32 billion and adjusted earnings of $3.03 per share in Q4, beating expectations.

Q2: What is Micron’s revenue outlook for Q1 2026?

The company forecast $12.50 billion in revenue, plus or minus $300 million, above Wall Street estimates.

Q3: How is Micron’s HBM business performing?

HBM revenue reached $2 billion in Q4. Micron expects to sell out all of its HBM capacity for 2026.

Q4: What margin guidance did Micron provide?

Micron forecast adjusted gross margin of 51.5 percent, higher than market expectations.

Q5: How does government support affect Micron?

Micron secured a $6.2 billion subsidy under the CHIPS Act and has already received a disbursement tied to factory expansion.

References

Reuters. (2025). Micron forecasts Q1 revenue above estimates on AI demand.

Associated Press. (2025). Micron earnings beat expectations amid AI chip demand.

BBC News. (2025). Micron’s AI-driven growth in semiconductor market.