Micron FQ4 2025 slides: Record revenue of $11.3B as AI demand fuels growth

Micron Technology reported robust fiscal Q4 2025 results, achieving $11.3 billion in revenue, a 46% year-over-year increase, with a 45.7% gross margin and $3.03 diluted EPS, largely driven by strong AI-related demand, particularly in High Bandwidth Memory (HBM) which neared $2 billion in quarterly revenue. The company's strategic advancements in DRAM and HBM position it for continued growth, reflected in an optimistic Q1 2026 guidance forecasting $12.5 billion in revenue and $3.75 EPS, underpinned by expectations of sustained strong demand and tightening supply in the memory market.

Analysis

Micron Technology (MU) delivered exceptional fiscal fourth-quarter 2025 results, underscoring its pivotal role in the AI infrastructure build-out. The company reported record revenue of $11.3 billion, a 46% year-over-year increase, and non-GAAP diluted EPS of $3.03, driven by significant demand for its memory and storage solutions. The primary growth catalyst was the data center segment, with the Cloud Memory Business Unit generating $4.5 billion in revenue at an impressive 59% gross margin. This performance was fueled by record High Bandwidth Memory (HBM) revenues, which approached $2 billion for the quarter, implying an annualized run rate of nearly $8 billion. Technologically, Micron has established a competitive edge by being the first to ship 1y DRAM and by sampling next-generation HBM4 with industry-leading specifications. The company's optimistic guidance for FQ1 2026, forecasting revenue of $12.5 billion and gross margins expanding to 51.5%, reflects confidence in sustained market strength, with management anticipating further DRAM supply tightness and robust AI server demand growth into calendar 2026.

Key Decisions for Investors

• Given Micron's record-breaking FQ4 performance and robust FQ1 guidance exceeding expectations, investors should consider the stock's potential for continued upward momentum driven by the structural AI demand cycle.
• Closely monitor the company's gross margin trajectory, guided to expand to 51.5%, as a key indicator of its pricing power and ability to capitalize on the high-value HBM and DRAM product mix.
• For a long-term thesis, track progress on strategic initiatives such as the Idaho fab construction and the HBM4 product roadmap, as these are critical for maintaining a competitive advantage and meeting future demand.