Micron MU Stock Soars After Earnings Smash Forecasts, Heads to $157 Highs

Quick overview

Micron Technology shares surged after hours as the chipmaker reported a strong Q2 earnings beat and issued an outlook well above Wall Street expectations, driven by accelerating cloud demand.

Nasdaq Rises on Tech Strength

The Nasdaq index climbed on Wednesday, bolstered by broad gains in big tech stocks. Micron Technology (NASDAQ: MU) stood out among the leaders, jumping 7% in after-hours trading following its highly anticipated quarterly earnings release.

Earnings and Forecast Exceed Expectations

Micron’s Q2 results for calendar year 2025 beat analysts’ estimates across key metrics. Revenue hit $9.3 billion, and adjusted earnings per share came in at $1.91, both comfortably above consensus forecasts. The company also issued Q3 revenue guidance of $10.7 billion at the midpoint and projected EPS of $2.50, far exceeding Wall Street expectations.

Stock Reaction and Price Movement

MU shares closed regular trading at $127.38 before leaping to $136.68 in extended hours. The move followed a volatile intraday session and reflects renewed investor optimism surrounding Micron’s growth trajectory.

CEO Highlights Record-Setting Segment Growth

Micron CEO Sanjay Mehrotra emphasized in the earnings call that the quarter delivered “record-breaking DRAM revenue” and “nearly 50% sequential growth in high-bandwidth memory (HBM).” He also noted that data center revenue more than doubled year-over-year, reaching a new quarterly record, while consumer-oriented markets also showed strong sequential momentum.

Year-to-Date MU Stock Performance

Following this earnings-fueled surge, MU stock is now up 55% year-to-date, dramatically outperforming the Nasdaq’s modest 3.5% gain over the same period.

Micron (MU) Q2 CY2025 Key Financial Results:

Revenue:

• $9.30 billion
• Surpassed analyst estimates of $8.86 billion
• Marked a 36.6% YoY increase and a 4.9% beat

Adjusted EPS:

• $1.91
• Beat analyst expectations of $1.61
• 18.9% upside surprise

Adjusted Operating Income:

• $2.49 billion
• Beat the consensus of $2.14 billion
• 26.8% operating margin, representing a 16.6% beat

Operating Margin:

• Rose to 23.3%, up sharply from 10.6% a year ago
• Free Cash Flow Margin:
• Climbed to 18%, up from 5.8% in Q2 last year

Inventory Days Outstanding:

• Decreased to 137 days, down from 161 days last quarter
• Indicates improved operational efficiency and faster product movement

Market Capitalization:

Stands at $142.9 billion

Q3 CY2025 Guidance (Outlook):

Revenue Guidance:

• Forecast at $10.7 billion (midpoint)
• 7.2% above analyst estimates of $9.99 billion

Adjusted EPS Guidance:

• Estimated at $2.50 (midpoint)
• Well above consensus estimate of $2.03

Conclusion: Micron’s stellar earnings report and bullish guidance underscore its growing role as a top-tier AI infrastructure supplier. With record DRAM sales, surging HBM demand, and improving profitability, Micron is reaping the benefits of a revitalized memory chip market. As its financial strength deepens, Micron appears poised to capitalize on the structural growth driven by AI, cloud, and data center megatrends.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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