Micron Technology Inc (NASDAQ:MU) has updated its fiscal fourth quarter 2025 financial guidance, noting that its improved outlook reflects better pricing, particularly in DRAM, and strong execution.
The company raised its revenue forecast to $11.2 billion plus or minus $100 million, up from the prior estimate of $10.7 billion.
The company raised its forecast for non-GAAP gross margin to about 44.5%, which is up by around 2.5 percentage points from the previous estimate of 42%.
At the same time, it increased its non-GAAP earnings per share (EPS) estimate to $2.85, up from the earlier $2.50.
Operating expenses are now expected to be around $1.22 billion, slightly higher than the previous estimate of $1.2 billion.
Wedbush analysts view the better outlook as consistent with both recent reports and guidance from Hynix, Samsung, and Kioxia, which have all highlighted better bit shipments and improving pricing trends going into Q3.
The analysts said that despite the encouraging update, ongoing questions remain about the memory market. They highlighted two main concerns: whether the recent increase in demand is sustainable or just a result of customers replenishing inventory, which could negatively impact fundamentals as soon as the fourth quarter; and whether Samsung has strengthened its position in high-bandwidth memory (HBM), especially with a competitive HBM4 product, potentially leading to price declines and lower margins in 2026.
Shares of Micron traded higher on the update, adding 3.9% at $123.