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Micron Technology stock surged over 11% in premarket trading on Thursday, December 18, 2025, following the company’s impressive fiscal first-quarter 2026 earnings report released the previous day. The memory chip manufacturer delivered results that significantly exceeded Wall Street expectations across all key metrics, while providing exceptionally strong guidance for the current quarter.

The semiconductor giant’s performance reflects surging demand for memory chips driven by artificial intelligence infrastructure expansion, positioning Micron as a critical enabler in the AI revolution.
 

Micron Posts Record Q1 Revenue as Cloud and AI Drive Growth

Micron reported fiscal first-quarter revenue of $13.64 billion, surpassing the Wall Street consensus estimate of $12.84 billion and representing a 57% year-over-year increase from $8.71 billion in the same period last year. The company’s adjusted earnings per share came in at $4.78, significantly beating analyst expectations of $3.95 per share. Net income reached $5.24 billion, or $4.60 per diluted share, compared to just $1.87 billion in the year-ago period.

The company’s performance was driven by strong demand across all business segments, with Cloud Memory Business Unit revenue reaching $5.28 billion, doubling on an annual basis, and gross margins expanding to 56.8% on a non-GAAP basis.

CEO Sanjay Mehrotra attributed the success to AI data center capacity growth driving significant increases in demand for high-performance memory and storage, noting that server unit demand strengthened significantly with growth in the high teens during 2025.

Micron also achieved record free cash flow, with operating cash flow of $8.41 billion and adjusted free cash flow of $3.9 billion for the quarter. The company’s strong financial position is reflected in its balance sheet, ending the quarter with $12.0 billion in cash, marketable investments, and restricted cash, while the board declared a quarterly dividend of $0.115 per share.
 

Micron Forecasts Massive Q2 Growth on AI Memory Strength

What truly energized investors was Micron’s guidance for the second fiscal quarter of 2026, which projects revenue of approximately $18.70 billion, substantially above the analyst consensus of $14.20 billion. The company expects adjusted earnings per share of about $8.42, nearly doubling Wall Street’s expectation of $4.78 per share. This represents anticipated sequential revenue growth of over 37% from the first quarter.

The company also guided for gross margins to expand to 68% on a non-GAAP basis in Q2, up from 56.8% in Q1, reflecting both higher pricing and operational improvements. Mehrotra noted that the company anticipates business performance to continue strengthening throughout fiscal 2026, supported by Micron’s technology leadership, differentiated product portfolio, and strong operational execution.

As of premarket trading on December 18, 2025, at 6:37 AM EST, Micron shares were trading at $251.45, up $25.74 or 11.41% from the previous close of $225.52. The stock has been on a remarkable run in 2025, up 168% year-to-date, reflecting the sustained strength in memory chip demand driven by AI applications.

The company is one of only three manufacturers of high-bandwidth memory needed for AI applications, with its memory used extensively in products like AMD’s latest AI chips.

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