Micron Fiscal Q4 Revenue More Than Quadruples as Management Expects a Record 2027 Amid Intense AI Demand

Micron Technology's revenue more than quadrupled in fiscal Q4 as surging AI demand drove a sharp acceleration across its data-centre and cloud businesses, sending earnings higher and giving management confidence that fiscal 2027 will be a record year.

The memory-chip maker reported $54.23 billion in quarterly revenue, which is 4.79 times the revenue from a year earlier, while adjusted earnings per share jumped more than tenfold to $33.42.

Micron management said demand for memory and storage from AI data centres remains exceptionally strong, while delivering a stronger-than-expected fiscal Q1 guidance. The company expects the scaling AI infrastructure buildout to continue driving demand for high-bandwidth memory, server DRAMs, and solid-state drives for data centres.

Micron's Q1 Guidance Blows Past Wall Street Expectations

Micron's outlook suggests the AI-driven memory boom is continuing into fiscal 2027.

The company expects fiscal Q1 revenue of $61.5 billion, plus or minus $1.5 billion, compared with the roughly $57.02 billion expected by analysts, according to LSEG data cited by Reuters. Micron also forecast adjusted EPS of $38.15, plus or minus $1, above the $35.40 analyst consensus.

Management also expects an adjusted gross margin of around 86.25%, underscoring how higher memory prices and favourable product mix are feeding through to profitability.

Following the results, KeyBanc analyst John Vinh reiterated an 'Overweight' rating on the stock and a price target of $1,750 per share, while saying the company had delivered results and guidance that 'solidly exceeded expectations'.

Record Fiscal 2027 Outlook Gets More Visibility

Micron's outlook for a record fiscal 2027 is supported by a major increase in long-term customer commitments. Micron said it now has 26 strategic customer agreements, up from 16 in the previous quarter, with commitments estimated to cover over 35% of revenue through 2030.

Remaining performance obligations also increased to $150 billion from $100 billion in the previous quarter, providing additional visibility into future contracted revenue.

Micron said it has secured agreements covering most of its calendar 2027 HBM supply, while supply constraints are expected to persist as AI infrastructure demand expands.

Baird analyst Tristan Gerra had said before the quarterly results that he was 'incrementally positive' on Micron's near-term and medium-term outlook, as the brokerage raised its price target to $1,520 per share from $1,280 on agentic AI demand and higher estimates for HBM margins.

Data Centre and Cloud Businesses Power Micron's AI Boom

Micron's core data centre division generated a record $18 billion in revenue in fiscal Q4, up from $4.54 billion a year earlier.

Meanwhile, the cloud memory business revenue came in at $16.28 billion, or about 30% of total revenue, with sales rising 18% sequentially. Its products include HBM, which is increasingly important for AI accelerators and advanced computing systems.

Together, the two businesses generated about $34.3 billion, or roughly 63% of Micron's quarterly revenue, compared with $6.1 billion a year earlier.

Data-centre SSD revenue alone approached $10 billion, more than 10 times the year-ago level, according to Micron's fiscal Q4 presentation.

The strength in these businesses also translated into significantly higher profitability. Core data centre operating margin rose to 85% year-over-year from 25%, while cloud memory posted a 76% operating margin. Micron reported strong pricing and higher shipments alongside a favourable product mix as drivers that supported the massive improvement in profitability.

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