Micron’s Q3 Revenue Soars 74% to $41.5B, Guides $50B Q4
MU•Micron reported third-quarter revenue of $41.5 billion, up 74% sequentially, with EPS of $25.11 and an 84.9% gross margin that beat estimates. It guided fourth-quarter revenue to $50 billion versus $43.6 billion expected, triggering a 17.6% premarket stock jump and broker price target raises to as high as $1,650.
1. Third-Quarter Results
Micron delivered third-quarter revenue of $41.5 billion, a 74% rise from the prior quarter, while earnings per share jumped to $25.11, more than double the previous period. The company achieved an 84.9% gross margin, reflecting tight memory chip supply and strong pricing power across DRAM and NAND products.
2. Fourth-Quarter Guidance and Analyst Response
Management forecast fourth-quarter revenue of $50 billion against market expectations of $43.6 billion, signaling robust demand continuation. The outlook spurred a 17.6% premarket share surge and prompted at least ten brokerages to raise price targets, with Needham leading at $1,650 and Wedbush setting $1,300.
3. Broader Market Impact
The blowout results lifted semiconductor sector sentiment, fueling rallies in global tech equities and reinforcing the artificial intelligence memory chip thesis. Micron also highlighted plans to return excess cash to shareholders as free cash flow ramps, while analysts note potential risks from IT spending slowdowns and geopolitical tensions.
