Micron Technology (MU) has delivered robust Q4 2025 financial results, reporting record-breaking revenue of $11.32 billion, which surpassed market expectations. The performance was driven by powerful growth in its AI data centre business, capping a record fiscal year for the company. Citing strong momentum and a highly competitive product portfolio, Micron issued a bullish forecast for the upcoming quarter, projecting gross margins to exceed 50% and signalling that the demand for its advanced memory solutions is continuing to accelerate.
● Total revenue: $11.32 billion, a 46% increase year-over-year.
This 46% growth is the clearest evidence that the company has moved far beyond the previous market downturn and is now in a period of potential expansion. It proves that demand for Micron's memory products is increasing, allowing it to sell more chips at better prices than a year ago. It also confirms that Micron is a primary beneficiary of the massive spending on AI infrastructure.
● Net income: $3.47 billion.
This is the company's core profit after excluding certain non-cash or one-time expenses. The figure demonstrates that the record revenue is translating directly into profitability. It confirms that high-demand products, such as HBM for AI, are not only selling well but are also highly profitable, thereby improving the company's earning power.
● Operating cash flow: $5.73 billion.
This metric shows the actual cash generated from Micron's core business operations before accounting for large capital investments. Generating $5.73 billion in cash in a single quarter is a sign of good financial health. It proves that the company's record profits are not just on paper but are backed by real cash, which can be used to fund new factories, research & development, and return capital to shareholders.
● Gross margin: 45.7%, showing improvement in profitability.
Gross margin measures the profitability of the products themselves (revenue minus the direct cost of manufacturing). The expansion to 45.7% is a critical indicator of pricing power. It means that demand for Micron's advanced memory is high and supply is tight, so the company can command premium prices, leading to much healthier and more sustainable profits than in previous cycles.
● Quarterly dividend: A dividend of $0.115 per share was declared.
This represents a direct return of cash to the company's owners. While a small amount, the consistent declaration of a dividend signals management's confidence in the company's long-term financial stability and its commitment to providing shareholder value. It shows that the business is maturing and profitable enough to invest heavily in future growth and reward its investors at the same time.
Micron's Q4 results showcase its critical and expanding role in the AI era, as its leadership in high-performance memory translated into record revenue and an improvement in profitability. The AI data centre has clearly become the primary engine of this growth, a trend highlighted by the company's operational execution and strong pricing power, which drove gross margins to 45.7%. Looking ahead, Micron issued a bullish forecast for Q1 that was significantly ahead of analyst estimates, with revenue expected to reach $12.5 billion and gross margins projected to exceed 51%. This guidance suggests that the momentum from the AI buildout is not only continuing but accelerating into the new financial year, positioning Micron as a key beneficiary of the long-term growth in high-performance computing.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
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