Micron Technology (MU) delivered its strongest quarterly report of the fiscal year to date, with revenue, gross margin, and earnings per share all significantly surpassing Wall Street expectations. Its guidance for the next quarter also comprehensively exceeded market consensus. Goldman Sachs believes this performance strongly confirms that the memory industry's uptrend is accelerating, driven by continued strength in DRAM and NAND pricing dynamics, and expects the stock price to move higher.
For the third fiscal quarter ending May 2026, Micron's revenue reached $41.456 billion, over 14% higher than the Wall Street consensus and a year-on-year increase of 345.7%. Non-GAAP earnings per share were $25.11, beating market expectations by approximately 19%. The NAND business was a particular standout, with revenue exceeding consensus estimates by about 28%. Following the announcement, Micron's shares rose roughly 8% in after-hours trading.
Guidance for the Next Quarter Remains Robust
The guidance for the fourth fiscal quarter is similarly strong. The midpoint of the revenue guidance is $50.0 billion, about 14.5% above market consensus. The midpoint of the non-GAAP EPS guidance is $31, approximately 19% higher than consensus. The gross margin guidance of 86% also exceeds Wall Street expectations by about 108 basis points. This indicates that the upward pricing momentum will continue into the next quarter, with no narrowing in the magnitude of the beat.
A Comprehensive Earnings Beat, Led by NAND
All of Micron's key metrics for Q3 significantly exceeded market expectations. Revenue of $41.456 billion was about 10.3% higher than Goldman Sachs' estimate of $37.579 billion and roughly 14.3% above the Wall Street consensus of $36.281 billion.
Breaking it down by segment, DRAM revenue was $31.328 billion, about 11% higher than both Goldman Sachs and Wall Street estimates. NAND revenue was $9.943 billion, approximately 8.3% above Goldman's estimate and a substantial 27.9% higher than the Wall Street consensus, representing the largest beat among the business segments.
Profitability also strengthened. The gross margin of 84.9% was about 241 basis points above the Wall Street consensus. Non-GAAP EPS of $25.11 was about 19.3% higher than the market consensus of $21.05.
Strong Fourth-Quarter Guidance Points to Continued Momentum
Micron's Q4 guidance exceeded market expectations across all metrics, indicating the continuation of the memory pricing uptrend. The revenue guidance range is $49.0 to $51.0 billion, with a midpoint of $50.0 billion. This is about 2.5% higher than Goldman Sachs' estimate and approximately 14.5% above the market consensus, representing a sequential increase of around 20.6% and a year-on-year increase of about 341.9%.
The gross margin guidance of 86% is largely in line with Goldman's 86.1% estimate and about 108 basis points above the market consensus, showing continued profitability expansion. The non-GAAP EPS guidance range is $30 to $32, with a midpoint of $31, which is roughly 3.5% higher than Goldman's estimate and about 19% above the market consensus.
Divergent Ratings: Goldman Maintains Neutral, Others See Upside
Despite both institutions highly praising the results, there remains a clear divergence in their ratings and price targets for Micron Technology stock, reflecting differing market judgments on valuation near the cycle's peak.
Goldman Sachs maintains a "Neutral" rating with a 12-month price target of $900, based on an 18x price-to-earnings multiple applied to a normalized EPS of $50. Based on the closing price of $1051.77 on June 23, this target implies a downside of approximately 14.4%.
Nevertheless, Goldman explicitly stated in its report that this "very strong performance and guidance" should drive Micron's stock price higher in the near term—a view that suggests Goldman believes the current price exceeds the cycle's valuation anchor, but that near-term earnings catalysts remain a driving force. Goldman forecasts Micron's FY27 EPS at $138.86, implying a forward P/E of about 7.6x.
Another major firm maintains a "Buy" rating with a price target of $1200, corresponding to about 10x its estimated 2027 EPS, implying an upside of roughly 14.5% from the pre-market closing price of $1047.92 on June 24. This firm argues that Micron deserves a valuation premium given the unprecedented pricing environment and the emergence of strategic customer agreements, with continued HBM pricing strength in 2027 being a core supporting thesis.
Goldman Sachs also noted that SanDisk (SNDK, rated "Buy") has similar end-market exposure to Micron Technology and is expected to react positively to these earnings as well.
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