Micron Technology (NASDAQ:MU) delivered an impressive fiscal Q3, beating expectations on both the top and bottom lines. Revenue reached a record $9.3 billion, above the $8.86 billion consensus, while EPS came in at $1.91 versus the expected $1.61. The company also raised its Q4 guidance to $10.7 billion in revenue and $2.50 EPS, well ahead of estimates at $9.88 billion and $2.01, respectively.
Gross margin was a standout at 39% (non-GAAP), alongside free cash flow of $1.9 billion — a strong showing given ongoing large-scale capital investments. All business segments posted positive sequential growth, with Compute and Networking leading the way at 11%, driven by a 50% quarter-over-quarter jump in High Bandwidth Memory (HBM) performance.
Micron continues to invest aggressively in manufacturing capacity, with a long-term commitment now nearing $230 billion. While much of that capacity won’t come online until 2027 or later, the surging demand for memory to support AI infrastructure should justify the spend. With 2025 HBM demand already sold out, further upside will need to come from a broader product mix and operational efficiencies to drive continued margin expansion which is possible given the surprise performance in the past quarter.
For more details, key highlights, and commentary, check out the high-level earnings summary.
