The company reported higher margins, strong free cash flow, and an outlook that exceeded analyst forecasts.
- Q1 revenue and earnings beat expectations, backed by strong cash flow.
- Q2 guidance came in far above consensus, signaling momentum into fiscal 2026.
- Growth and margin expansion were seen across cloud, data center, mobile, and automotive units.
Micron Technology (MU) shares jumped about 6% in after-hours trading on Wednesday after the memory chipmaker delivered a strong quarterly beat and issued an outlook that came in far above Wall Street expectations.
Q1 Results Top Expectations
For the first quarter (Q1), Micron reported revenue of $13.64 billion, beating Wall Street estimates of about $12.88 billion and rising sharply from $8.71 billion in the prior year. Adjusted earnings came in at $4.78 per share, above consensus expectations of $3.94.
Micron said it delivered record revenue and margin expansion across the company and in each of its business units during the quarter.
Much of the quarter’s strength came from AI-related demand. Micron’s cloud memory business generated more than $5.2 billion in revenue, with gross margin at 66%. The mobile, data center, and automotive segments also posted solid growth, alongside significant margin improvement.
The chipmaker said it spent $4.5 billion on capital expenditures during the quarter while still generating $3.9 billion in adjusted free cash flow. The company ended the period with $12 billion in cash and marketable investments.
The board also approved a quarterly dividend of $0.115 per share, payable in January.
Q2 Outlook Above Consensus
The company forecast second quarter (Q2) revenue of $18.7 billion, plus or minus $400 million, compared with analyst expectations of $14.38 billion.
“Our Q2 outlook reflects substantial records across revenue, gross margin, EPS and free cash flow, and we anticipate our business performance to continue strengthening through fiscal 2026,” Micron CEO Sanjay Mehrotra said in a statement.
Micron also guided to adjusted earnings of $8.42 per share, plus or minus $0.20 in Q2, well above consensus estimates of $4.71. Gross margin is expected to rise further to about 68% on an adjusted basis.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for Micron was ‘bullish’ amid ‘extremely high’ message volume.
One user said the company “smashed estimates out of the park.”
Another user compared Micron’s results favorably with those of Oracle and Broadcom, saying the numbers stood out and expressed optimism that the stock could hit $300.
Micron’s stock has surged nearly 170% so far in 2025.
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