Micron Earnings Lift Guidance, Markets Mixed
Micron earnings propelled a record quarter and raised the outlook, leaving markets mixed as the Nasdaq slipped on tech rotation and inflation data.
KEY TAKEAWAYS
- Micron reported record fiscal Q3 revenue of $41.5 billion and generated strong cash flow.
- Guided FQ4 revenue to $50.0 billion ± $1.0 billion and EPS to $31.00 ± $1.00.
- U.S. markets closed mixed with Dow +0.1%, Nasdaq -0.5% and S&P 500 flat amid inflation sensitivity.
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Micron Technology reported record fiscal third-quarter 2026 results on June 24. The company’s earnings and upgraded outlook were the primary catalyst as U.S. markets closed mixed on June 25 amid rotation out of large-cap tech and sensitivity to inflation data.
Micron’s Record Quarter and Outlook
For the quarter ended May 28, Micron Technology reported revenue of $41.46 billion, up from $23.86 billion in the prior quarter and $9.30 billion a year earlier, the company said in a press release on June 24. GAAP net income was $28.24 billion, or $24.67 per diluted share. On a non-GAAP basis, net income was $28.86 billion, or $25.11 per diluted share.
The company generated operating cash flow of $25.39 billion and adjusted free cash flow of $18.3 billion. Capital expenditures, net, were $7.1 billion. At quarter-end, cash, marketable investments, and restricted cash totaled $30.2 billion.
In prepared remarks, Micron set fiscal fourth-quarter 2026 revenue guidance at $50.0 billion plus or minus $1.0 billion, gross margin at about 86.0%, operating expenses near $1.65 billion, and earnings per share at $31.00 plus or minus $1.00, based on an assumed share count of about 1.15 billion. The remarks noted data-center revenue exceeded $25 billion, with data-center solid-state drive (SSD) revenue topping $5 billion, highlighting the company’s role in enabling the AI era.
The board declared a quarterly dividend of $0.15 per share, payable July 21 to shareholders of record on July 6.
Markets Mixed After Inflation Data
U.S. stock indexes closed mixed on June 25. The Dow Jones Industrial Average rose 0.14%, the Nasdaq Composite fell 0.46%, and the S&P 500 slipped 0.01%. The Nasdaq’s decline reflected rotation out of large-cap technology stocks and investor caution following inflation data that met expectations. Apple was among the weaker large-cap tech names, while the Dow’s advance was supported by strength in non-tech industrials. Micron’s guidance and strong cash flow supported the dividend and were cited as company-specific catalysts despite broader market sensitivity to inflation.
