Micron Stock Drops Despite Strong Earnings and Guidance

Micron Technology (MU) shares fell 2.8% despite reporting fiscal Q4 earnings that surpassed analyst expectations. Adjusted earnings reached $3.03 per share on $11.3 billion in revenue, beating forecasts of $2.86 per share and $11.2 billion. Management projected sequential growth in both sales and profits for Q1 2026.

Year-over-year performance showed robust improvement, with quarterly sales up 45% and gross margins expanding nearly 10 percentage points to 44.7%. GAAP earnings tripled to $2.83 per share compared to the prior year. Full-year revenue hit $37.4 billion, marking 49% growth.

The market's negative reaction may stem from overlooked details in cash FLOW statements. While operating cash flow doubled to $17.5 billion in fiscal 2025, investors appeared focused on undisclosed capital allocation concerns rather than the strong fundamentals.