Micron Technology, Inc (NASDAQ:MU) Technology reported fiscal first-quarter results and forward guidance that surpassed Wall Street expectations, driven by surging demand from artificial intelligence and data center customers. The company’s stronger-than-expected earnings forecast and revenue outlook lifted shares sharply in extended trading.
Micron forecast second-quarter adjusted profit of $8.42 per share, plus or minus 20 cents — nearly double analyst expectations. Revenue for the current quarter is projected at $18.7 billion, plus or minus $400 million, well above consensus estimates. For the just-ended quarter, Micron reported adjusted earnings of $4.78 per share on revenue of $13.64 billion, both ahead of forecasts.
The results were supported by tight supply conditions and rising prices across memory markets, including DRAM, NAND and high-bandwidth memory used in AI systems. Micron is one of only three major global suppliers of high-bandwidth memory chips, which are critical for training and deploying generative AI models.
Company executives said memory markets are expected to remain tight beyond 2026, with demand from several key customers exceeding Micron’s current manufacturing capacity. Management noted that many customers are receiving less memory than requested as AI-related demand continues to accelerate across multiple end markets.
Micron also announced plans to increase capital expenditures in fiscal 2026 to $20 billion, up from a prior estimate of $18 billion, as it invests to expand production capacity and support long-term demand. The company said it is negotiating multiyear supply agreements with key customers to manage supply constraints.
The company is seeing particularly strong demand from data centers, driven by increased spending by large cloud service providers. Micron has been shifting production capacity toward AI-focused customers and recently exited its consumer-branded memory business under the Crucial name as part of its strategic realignment.
Despite the strong outlook, company executives emphasized that execution and broader technology-sector dynamics will remain important factors in sustaining growth.
#Investor Takeaway
Micron’s sharply higher profit and revenue guidance highlights strong momentum from AI-driven demand and favorable pricing conditions across memory markets.
#Market Impact
Following the earnings announcement, Micron shares rose about 7% in extended trading. Several analysts raised price targets, reflecting increased confidence in the company’s earnings power amid tight supply conditions.
#What’s Next
Investors will be watching Micron’s execution against its elevated guidance, progress on capacity expansion, and developments in memory supply constraints as AI demand continues to grow.