Micron's Revenue Outlook Surpasses Analyst Estimates
Micron Technology has projected its **first-quarter fiscal 2026 revenue** at approximately $12.5 billion, plus or minus $300 million, exceeding the average analyst estimate of $11.94 billion. This optimism comes as the company continues to see robust demand for memory chips driven by a surge in AI-related data center investments[3][2].
Financial Performance and Guidance
- Q1 2026 Earnings Guidance: Expected earnings per share (EPS) in the range of $3.60 to $3.90, higher than the consensus EPS estimate of $2.96[2].
- Q1 2025 Results: Revenue reached $8.71 billion, up from $7.75 billion in the prior quarter and $4.73 billion year-over-year[1].
- Net Income: GAAP net income for Q1 2025 was $1.87 billion, or $1.67 per diluted share. Non-GAAP net income stood at $2.04 billion, or $1.79 per diluted share[1].
- Operating Cash Flow: $3.24 billion, compared to $3.41 billion in the previous quarter[1].
- Dividend: Quarterly dividend of $0.115 per share declared, payable January 15, 2025[1].
AI Boom Powers Data Center Growth
CEO Sanjay Mehrotra highlighted that **data center revenue** accounted for over 50% of total revenue for the first time. Demand for memory and storage driven by artificial intelligence (AI) workloads is accelerating, positioning Micron to capitalize on rapid market expansion.
- Data center revenue grew more than 40% sequentially and over 400% year over year in Q1 2025[1].
- Micron anticipates AI-driven growth to create substantial value for stakeholders, despite near-term weaknesses in consumer-oriented markets[1].
Market Performance and Outlook
- Micron shares climbed following the upbeat forecast, reflecting investor confidence in the company's growth prospects[3].
- The stock traded at $166.41 on Tuesday, not far from its 52-week high of $170.45[2].
- Market capitalization reached $186.23 billion, with a price-to-earnings ratio of 29.98[2].
Conclusion
Micron's guidance underscores strong market demand for memory chips, particularly as AI and data center investment surge globally. The company projects continued momentum and is well positioned to benefit from ongoing technological shifts and increased adoption of AI tools such as
Chatgpt.
