Micron Technology reported profits of $37.7 billion in its fourth fiscal quarter, compared to $3.2 billion in the same period last year.
Micron Technology's profits and revenue both soared significantly in its fourth fiscal quarter. The company stated that the shortage of memory chips, which has driven explosive growth in its performance over the past year, shows no signs of abating at present.
Chief Executive Officer Sanjay Mehrotra said during a analysts' conference call on Wednesday: "Since the last financial report conference call, industry demand has further strengthened. We expect that the supply and demand for storage chips in the fiscal years 2027 and 2028 will be much more tight than in fiscal year 2026."
Investors have been debating whether the current shortage of memory chips will continue, and Micron's impressive financial report is a direct result of the demand exceeding supply. In June of this year, Mehrotra indicated to analysts that the chip shortage would persist beyond 2027, but the firm's stance at that time was not as firm as its statement on Wednesday.
Micron has been working hard to expand its production capacity for memory chips. Meherotra stated that several wafer factories are set to begin production as planned over the next two years. However, he also mentioned that the gap between supply and demand is substantial, especially for DRAM memory, which means that Micron will need to further increase its capital expenditures in the next fiscal year.
Company guidelines indicate that capital expenditures for the first half of this fiscal year were approximately $25 billion, with about $11.5 billion in the first fiscal quarter. Capital expenditures are expected to continue to increase in the second half of the year. Micron stated that the majority of the new investment will be used for factory construction.
Meherotra stated, "We are making every effort to expand our global manufacturing capacity in order to meet the growing customer demand by the end of this decade and beyond."
Micron also disclosed that in order to secure the scarce storage chips, the company has signed 26 long-term supply agreements with customers, compared to only 16 in June; the total value of these agreements amounts to $32 billion. Meherotra stated that some of these agreements will be in effect until 2031; by 2030, these long-term contracts will account for more than 35% of Micron's expected total revenue.
For the fiscal quarter ending September 3, Micron announced a net profit of $37.7 billion, equivalent to $32.87 per share; in the same period last year, the net profit was $3.2 billion, with $2.83 per share.
Earnings per share after adjustment are $33.42; analysts surveyed by FactSet unanimously expected $31.72, with the performance exceeding market expectations.
Quarterly revenue soared from $11.32 billion in the same period last year to $54.23 billion, exceeding analysts' previous forecast of $51.33 billion.
For the current first fiscal quarter, Micron has provided performance guidance: adjusted earnings per share of $37.15-$39.15, and revenue range of $60 billion-$63 billion. Market analysts unanimously expect adjusted earnings per share of $35.47 and revenue of $57.4 billion.
On Thursday's pre-market trading, Micron's stock price fell by 0.8% to $1057.
Responsible Editor: Guo Mingyu
