Micron Technology (NASDAQ:MU) topped second-quarter expectations, driven by surging demand from data center and consumer markets, but a mixed third-quarter outlook pushed the stock down more than 3% in pre-market today.
The memory chipmaker reported Q2 earnings per share of $1.56, beating analyst estimates of $1.44. Revenue climbed to $8.05 billion, exceeding the consensus forecast of $7.91 billion, reflecting continued strength across DRAM and NAND products.
While Micron’s management expressed confidence in a strong year ahead—highlighting expectations for record Q3 revenue and improved profitability in fiscal 2025—investors were met with mixed guidance for the upcoming quarter.
The company forecasts Q3 revenue between $8.6 billion and $9 billion, ahead of the $8.48 billion consensus, but guided EPS between $1.47 and $1.67, below expectations of $1.79.
Micron also projects a gross margin of 36.5%, down 200 basis points from the prior quarter and below the Street estimate of 38.7%, raising concerns about short-term pressure on profitability despite strong top-line momentum.