Micron Technology (NASDAQ:MU) forecast fiscal first-quarter 2027 revenue and adjusted earnings above analyst expectations, citing continued demand for memory products used in artificial intelligence infrastructure.
Micron shares were slightly lower in US premarket trading. The company forecast first-quarter revenue of $61.5 billion, plus or minus $1.5 billion, compared with an analyst consensus of $56.77 billion.
Adjusted earnings per share are expected to reach $38.15, plus or minus $1.00, compared with the $36.02 consensus estimate.
AI-Related Products Support Revenue Outlook
Micron reported continued demand across products used in AI infrastructure. Revenue from its server LPDDR SOCAMM products more than doubled sequentially during the fourth quarter, while its PCIe Gen 5 and Gen 6 SSD products were being shipped for AI-related cache applications.
The company’s guidance nevertheless indicates slower sequential earnings growth. Adjusted earnings per share increased 33% in the fourth quarter compared with the third quarter, while the first-quarter guidance implies growth of approximately 14%.
Micron expects an adjusted gross margin of approximately 86.25% for the first quarter and adjusted operating expenses of around $2.06 billion.
The gross-margin forecast compares with 87.0% in the fourth quarter. Micron also expects operating expenses to increase by $2.5 billion during fiscal 2027.
Jake Behan, head of capital markets at Direxion, said the results provided further evidence for investors assessing the duration of AI-related demand.
“Micron’s earnings were never just about Micron. This was a test of how far the market can see into Micron’s future. Traders came in looking for evidence that AI demand extends into 2027 and beyond. The strong report makes it easier for the market to believe this cycle still has room to run,” Behan said.
“Given the stock’s run higher into earnings, a blowout quarter was already priced in. The fact that Micron was able to not only validate that move but create a fresh catalyst for the stock is bullish news not only for Micron, but for the AI trade writ large,” he added.
Micron Reports Fourth-Quarter Earnings Above Estimates
For the fourth quarter, Micron reported adjusted earnings of $33.42 per diluted share, above the analyst consensus of $31.16. Revenue reached $54.23 billion, compared with an estimate of $50.45 billion.
Adjusted gross margin increased to 87.0% from 84.9% in the previous quarter, while adjusted operating income rose to $44.64 billion from $33.68 billion. Adjusted net income increased to $38.40 billion from $28.86 billion.
“Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027,” chief executive Sanjay Mehrotra said, citing AI demand and strategic customer agreements.
During the earnings call, chief financial officer Mark Murphy said the company has the “ability and the intent to increase our capital return,” adding that Micron would “commence stronger capital return” from December 9.
Micron Technology stock price
