Micron (MU) Stock Rises 2% After Blowout Fourth-Quarter Results

TLDR

• Micron posted blowout fiscal Q4 earnings, with adjusted EPS of $33.42 versus the $31.72 Wall Street expected.
• Revenue hit $54 billion, up 379% year-over-year, beating estimates of $51 billion.
• Shares rose about 2% in after-hours trading despite the massive beat.
• Micron now has 26 multi-year supply agreements locking in demand through 2030, up from 16 last quarter.
• Despite record 87% gross margins, Micron’s forward P/E sits at just 6.6, far below the S&P 500’s 18.5.

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Micron (MU) stock inched higher after the chipmaker posted another record quarter, though the gain was modest given the scale of the beat. Shares rose roughly 1.6% in after-hours trading on Wednesday, adding to a small gain during the regular session.

Micron Technology, Inc., MU

The memory maker’s numbers were hard to ignore. Adjusted earnings per share came in at $33.42, blowing past the $31.72 analysts expected and up massively from just $3.03 a year ago.

Revenue for the quarter reached $54 billion, topping the $51 billion consensus estimate. That’s a 379% jump from the same period last year.

MICRON $MU Q4’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $54.23B (Est. $51.07B) 🟢; +379% YoY
🔹 Adj. EPS: $33.42 (Est. $31.61) 🟢
🔹 Adj. Gross Margin: 87.0% (Est. 86.1%) 🟢

Q1 FY27 Guide:
🔹 Revenue: $61.5B ± $1.5B (Est. $57.02B) 🟢
🔹 Adj. EPS: $38.15 ± $1.00 (Est. $35.40) 🟢
🔹… pic.twitter.com/DvLalHRPYe

— Wall St Engine (@wallstengine) September 30, 2026

CEO Sanjay Mehrotra told investors that demand has only gotten stronger since the last earnings call. He said memory and storage supply will likely stay tight through fiscal 2027 and 2028.

Wall Street Still Isn’t Fully Convinced

Despite the blowout numbers, Micron’s valuation tells a different story. The stock trades at a forward price-to-earnings ratio of just 6.6, well below the broader market’s 18.5.

Memory chips have always been a boom-and-bust business. Investors who got burned in past downturns are wary of calling this cycle different, even with AI demand driving record results.

Micron posted a gross margin of 87% this quarter, an all-time high for the company. But guidance for the current quarter points to margins and sales growth both slipping slightly, which feeds the skeptics’ case.

The bulls argue this time is different. Data center spending is pushing past a trillion dollars a year, and all those AI servers need huge amounts of high-bandwidth memory and fast storage.

New manufacturing capacity isn’t expected to come online until mid-2027. That’s partly because Micron and rivals Samsung and SK Hynix pulled back on factory investment after getting burned by the 2022-2023 downturn.

Micron’s Bet on Long-Term Contracts

To try to smooth out the usual boom-bust pattern, Micron is locking customers into five-year supply deals instead of the typical one-year contracts. These agreements include price floors, high ceilings, and customer deposits.

Mehrotra called these deals a way to sharpen long-term planning and make Micron’s financial performance more predictable. The company now has 26 such agreements, up from 16 last quarter, covering about a third of its revenue through 2030.

Micron is betting that if it can prove the business is less cyclical, Wall Street will eventually reward it with a higher valuation. But that re-rating hasn’t fully arrived yet.

After last quarter’s earnings report, the stock jumped 16% as analysts raced to raise estimates. Those gains have since faded as old doubts crept back in.

Micron’s cash position has also transformed. The company generated $59 billion in free cash flow over the past fiscal year.

It used that cash to pay down $10 billion in debt, bringing total debt down to $5 billion. Micron has also started a share-repurchase program.

For the first quarter, Micron is guiding for revenue between $60 billion and $63 billion, above the $56.77 billion analysts had expected. Shares are up roughly 275% year to date and 550% over the past 12 months.