Micron reported a significant rise in operating margins across its business units in fiscal Q4 2025. The Mobile and Client division reached an 88% operating margin, while the Core Data Center unit saw its margin climb from 25% to 85%. Automotive and Embedded margins increased from 20% to 79%, and Cloud Memory margins rose from 48% to 76%.
Despite a 14% quarter-over-quarter revenue increase in the Mobile and Client unit, it was the only division to ship less memory during the period. Micron attributed the revenue growth to higher pricing, which offset the decline in bit shipments. This trend aligns with broader market observations where consumer sector growth is driven by price hikes rather than increased volume.
Looking ahead, Micron projects record revenue of $61.5 billion, plus or minus $1.5 billion, for fiscal Q1 2027. The company anticipates that the memory and storage industry will remain supply-constrained throughout 2027 and 2028, as demand continues to outpace supply despite projected growth in NAND and DRAM bit shipments.
To address these constraints, Micron plans to increase capital expenditure in fiscal 2027. A majority of these funds will support the construction of additional clean room space, scheduled for completion between 2028 and the end of the decade. The company noted that it currently lacks a clear timeline for when supply and demand will return to balance.
