Micron Technology (MU) shares performed their daily impression of a startled prairie dog burrowing underground today, slumping 2.8% by 3:15 p.m. ET Wednesday. This occurred despite the company delivering earnings results that should’ve warranted champagne flutes, not emergency board meetings.
Heading into its fiscal fourth-quarter 2025 report, the soothsayers of Wall Street predicted $2.86 per share profits on $11.2 billion in revenue. Micron, however, summoned $3.03 per share (adjusted for peculiar alchemical expenses) during the period ending Aug. 28, with sales materializing at $11.3 billion. Management even promised sequential growth in both coin and glory for fiscal Q1 2026. And yet, here we are.
Micron Q4 earnings
While investors practiced their best impression of unimpressed cats today, Micron’s numbers gleamed brighter than a dragon’s hoard. Quarterly sales swelled 45% year over year. Gross profit margin expanded nearly 10 percentage points to 44.7%, and operating margin ballooned 12 points to 32.3%1.
On the bottom line, GAAP earnings rose to $2.83 per share – slightly less glittering than adjusted figures but still triple last year’s haul. For fiscal 2025, Micron amassed $37.4 billion in revenue (49% growth) and earned $7.59 per share. By all accounts, a dragon-slaying performance.
Is Micron stock a buy?
Why the market’s sour troll face? Consider this: Buried in the cash-flow statement like a skeleton in a treasure chest, Micron’s $17.5 billion operating cash flow (twice 2024’s haul) mostly vanished into capital expenditures. The company retained just $1.7 billion in free cash flow – roughly $0.20 of real liquidity for every $1 of GAAP profit.
In investor terms: You’ve built a magnificent castle, but the moat requires constant feeding to hungry crocodiles named ASML. With these numbers, even a seasoned portfolio manager might ponder selling shares while humming the “Song of the Short Squeeze.”
Perhaps the market’s reaction is simply the ancient ritual of “buy the rumor, sell the fact” playing out with particularly dramatic flair. Or maybe investors realized that in the semiconductor bazaar, today’s golden goose is tomorrow’s roasted chicken. 📉
Footnotes
1 These margins apparently originate from the same dimension where socks disappear in dryers. Their sudden appearance defies all known economic laws, yet here we are.
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2025-09-24 23:12