Micron Technology Q3 Results and Analyst Target Upgrade
Susquehanna International Group raised its price target for Micron Technology to $2,000, up from the prior $1,750, marking the highest target among Wall Street analysts. The upgrade follows Micron's fiscal third‑quarter report, which delivered record‑breaking financial performance.
Micron reported third‑quarter revenue of $41.46 billion and an adjusted earnings‑per‑share (EPS) of $25.11. Both metrics substantially exceeded consensus estimates of $35.91 billion for revenue and $20.86 for EPS. The company's gross margin expanded to 84.9%, surpassing the expected 80.8%.
For the current fiscal year, Micron guided revenue of approximately $50 billion and EPS around $31, again well above analyst expectations. The guidance is underpinned by 16 signed strategic customer agreements (SCAs). These non‑cancellable, take‑or‑pay contracts typically span five years, covering roughly one‑fifth of DRAM bits and one‑third of NAND bits. When fully executed, Micron anticipates that more than half of its total revenue will be generated under such agreements, which include price‑floor provisions that lock in gross margins above prior‑cycle peaks, even in downturn scenarios.
Micron's DRAM revenue more than tripled year‑on‑year to $31.3 billion, while NAND revenue nearly quadrupled to $9.9 billion. Data‑center SSD revenue exceeded $5 billion in the quarter alone. The company also highlighted that its high‑bandwidth memory (HBM4) product is ramping at twice the pace of the previous generation, with customer commitments extending into 2028 and beyond. Micron now expects the total addressable market for HBM to exceed $100 billion in 2027, a year earlier than previously projected.
Susquehanna projects that Micron will generate free cash flow exceeding $110 billion in fiscal 2027, with the bulk of this cash flow expected to flow to shareholders. The firm further raised its EPS forecasts, suggesting that annualised EPS could reach $200 as Micron exits FY27.