Key Moments
- Citi expects Micron Technology to report fiscal first-quarter results “significantly above Consensus” on Dec. 17 after the close.
- The bank projects F1Q26 revenue of $14.0 billion and EPS of $4.07, both well ahead of Micron’s guidance and current Wall Street estimates.
- Citi raised its FY26 sales and EPS forecasts and lifted its Micron price target to $300, reiterating a Buy rating.
Citi Flags Micron as a Major Earnings Outperformer
Investing.com – Analysts at Citi identified Micron Technology as a key name they expect to outperform market expectations when the company releases its fiscal first-quarter earnings on Dec. 17 after the market close.
The bank pointed to sharply higher memory prices and sustained demand for artificial intelligence applications as the primary drivers behind its optimistic stance on the stock.
DRAM Pricing and AI Demand Drive Bullish Outlook
Citi analyst Christopher Danely said he is looking for a “significant beat and raise,” attributing his view to “unprecedented increases in DRAM pricing.” The firm estimates that DRAM prices climbed 50% quarter-on-quarter in 4Q25, a move it described as far stronger than previously anticipated.
Citi also noted that Micron is “sold out of HBM in 2026” and indicated that the company is likely to secure “capital infusions from AI customers” as long-term DRAM supply agreements are negotiated across the industry.
Upgraded Revenue and EPS Projections
Citi outlined substantial upside to Micron’s near-term financial performance compared with both company guidance and Consensus estimates.
| Period | Metric | Citi Forecast | Company Guidance / Consensus |
|---|---|---|---|
| F1Q26 | Revenue | $14.0 billion | Micron guidance: $12.5 billion; Consensus: $12.59 billion |
| F1Q26 | EPS | $4.07 | Consensus: $3.52 |
| F2Q26 | Revenue | $17.0 billion | Consensus: $13.2 billion |
| F2Q26 | EPS | $6.18 | Consensus: $3.75 |
Danely’s earnings per share forecast of $4.07 for F1Q26 stands above the $3.52 that Wall Street expects, with the analyst citing stronger gross margins as a key contributor.
Looking ahead to the following quarter, Citi projects F2Q26 revenue of $17.0 billion, compared with Consensus at $13.2 billion, and sees EPS at $6.18, far exceeding the $3.75 analysts currently expect.
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Capital Infusions and Long-Term Supply Contracts
Citi emphasized the strategic impact of long-duration agreements in the memory supply chain. “The AI food chain is negotiating long-term DRAM contracts which will result in large capital infusions,” the firm wrote, adding that these inflows will support the build-out of new fabrication facilities across the sector.
Full-Year FY26 Forecasts and Target Price Boost
Reflecting the stronger pricing and demand backdrop, Citi raised its full-year projections for Micron. The bank now models FY26 sales of $68 billion, up from a prior $64 billion forecast. Its FY26 EPS estimate was increased from $21.54 to $24.51.
Citi stated that its FY26 EPS estimate is 52% above Consensus, which it said underscores a much more favorable environment for pricing and demand than is currently embedded in market expectations.
Reiterating its positive stance on the stock, Citi maintained a Buy rating on Micron and increased its price target to $300 from $275, describing the company as one of the clearest beneficiaries of accelerating AI-driven memory demand.
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