Micron Shares Stay Flat Despite Earnings Beat as Wall Street Raises Price Targets

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Micron Shares Stay Flat Despite Earnings Beat as Wall Street Raises Price Targets
PrimeXBT Editorial Team
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Micron Technology posted a fiscal fourth-quarter earnings and revenue beat on Wednesday, plus guidance well above Wall Street estimates, yet the stock barely moved. Analysts at Deutsche Bank, Bank of America, UBS, Citi, JPMorgan and Wells Fargo reiterated bullish ratings afterward, with price targets stretching as high as $1,625.

Micron's fiscal fourth-quarter results beat Wall Street on every major line, but the stock stayed flat anyway. The memory-chip maker posted adjusted earnings of $33.42 per share, ahead of the $31.61 analysts polled by LSEG had expected. Revenue reached $54.23 billion, above the Street's $51.07 billion consensus and nearly four times higher than the same period a year earlier.

Guidance tops estimates, shares stay flat

Micron also guided above expectations for the current quarter, pointing to adjusted earnings of $38.15 per share on about $61.5 billion in revenue. Stifel noted that guidance represents a 13% sequential increase, exceeding the roughly $57 billion consensus. Gross margins are expected to decline about 70 basis points sequentially to roughly 86.3% on higher incentive compensation and fabrication start-up costs. Even so, shares were flat in premarket trading after the report. The stock is still up 273% year to date in 2026.

Wall Street lifts price targets

Several firms reiterated bullish ratings after the print. Deutsche Bank kept a buy rating and a $1,550 price target, implying nearly 46% upside from Wednesday's close. UBS maintained a buy rating with a $1,625 price target. JPMorgan stayed Overweight at $1,540. Citi kept a buy rating at $1,300. Stifel also reiterated its buy rating, setting a $1,500 price target. Wells Fargo kept its Overweight rating with a $1,400 price target. Not every analyst is as bullish: Goldman Sachs kept a Neutral rating with a $1,250 price target, citing modest gross-margin downside against elevated investor expectations heading into the quarter.

Long-term supply deals back up the outlook

Wells Fargo noted the company now has 26 signed Strategic Customer Agreements, up from 16 last quarter, representing more than 35% of revenue through 2030. Those deals now carry $32 billion in financial commitments versus $22 billion previously. The firm added that Micron expects to increase its capital return starting December 9, the two-year anniversary of its CHIPS Act agreement. Stifel separately noted free cash flow exceeded 60% of sales in the fiscal fourth quarter, with share buybacks set to resume in December.

Sources: CNBC, Investing.com, Investing.com

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