Micron reports $50 billion Q4 revenue guidance and $18 billion quarterly free cash flow amid multi-year hyperscaler deals.
Micron Technology forecasts $50 billion in Q4 revenue and $18 billion in quarterly free cash flow, driven by $100 billion in take-or-pay remaining performance obligations (RPO) with hyperscalers. The contracts, featuring above-peak floor pricing, eliminate traditional memory cyclicality risks and extend tight supply conditions beyond 2027, according to the company.
The guidance reflects a structural shift in the memory market, moving from commodity DRAM to co-engineered High Bandwidth Memory (HBM) under non-cancellable agreements. Micron’s CEO stated the industry has been transformed by AI proliferation, with 16 Strategic Customer Agreements underpinning long-term demand.
Shares trade at a forward P/E of 6, supported by durable revenue streams and hedges against potential AI slowdowns. The company’s backlog and supply commitments mark a departure from historical boom-bust cycles.