Micron Q3 Revenue Soars 346% to $41.5B, EPS $25.11 Triggers 15% Rally
MU•Micron posted Q3 revenue of $41.46 billion, up 346% year-over-year, and EPS of $25.11, beating estimates, sending shares up 15.8% in after-hours trading. Management said HBM demand will exceed supply through 2028 and strategic customer agreements rose from one to seven, boosting long-term visibility.
1. Q3 Financial Performance
Micron delivered revenue of $41.46 billion in the third quarter, a 346% increase year-over-year, and reported earnings of $25.11 per share, both well above Wall Street consensus. The stronger-than-expected results propelled share price gains of 15.8% in after-hours trading.
2. AI Demand and Supply Outlook
Leadership highlighted that demand for high-bandwidth memory (HBM) and DRAM will outstrip supply through at least 2028, driven by rapid adoption of AI applications. Tight supply conditions on key memory products underpin pricing power across Micron’s portfolio.
3. Five-Year Strategic Agreements
The number of five-year strategic customer agreements rose from one last quarter to seven, signaling that major clients are securing multi-year capacity at current price levels. This backlog provides revenue visibility and pricing stability over the next five years.
4. Margin Expansion and Valuation
Micron’s gross margin expanded to 84.9%, more than doubling year-over-year on strong product mix and high ASPs. The company also raised its high-bandwidth memory total addressable market forecast to exceed $100 billion in 2027, underscoring an attractive valuation setup.
