With a market cap of $72.3 billion, Micron Technology, Inc. (MU) designs, develops, manufactures, and sells memory and storage products in the United States and internationally. Founded in 1978, the Boise, Idaho-based company operates through the Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit segments. MU is expected to announce its Q3 results on Wednesday, Jun. 25.

Ahead of the event, analysts expect MU to report an adjusted profit of $1.41 per share, up 227.9% from the year-ago quarter's profit of $0.43 per share. Moreover, the company has surpassed analysts' earnings estimates in each of the past four quarters.

For the full fiscal 2025, analysts expect MU to report an adjusted EPS of $6.21, up 970.7% from $0.58 in fiscal 2024. Additionally, in fiscal 2026, its adjusted earnings are expected to grow 69.6% year-over-year to $10.53 per share.

Over the past year, MU shares dropped 31.6%, underperforming the S&P 500 Index’s ($SPX) 8.4% gains and the Technology Select Sector SPDR Fund’s (XLK) 4.2% returns over the same time frame.

Micron’s shares declined 8% in the next trading session following the release of its Q2 earnings Mar. 20. The company reported a remarkable 38.3% year-over-year growth in its revenue, which came in at $8.1 billion and successfully surpassed the Street's expectations. Its non-GAAP gross profit rose 162.5% from the year-ago value to $3.1 billion. Moreover, the company's non-GAAP operating income showcased a substantial increase of 883.8% from the prior year's quarter and amounted to approximately $2 billion. Furthermore, Micron's non-GAAP net income for the quarter grew 274.6% year-over-year to $1.8 billion.

However, the company’s non-GAAP gross margin has been on a downward trajectory, falling from 39.5% in Q1 to 37.9% in Q2 to an expected value of 36.5% for the ongoing quarter, indicating lower profitability. This series of declines could have unsettled investor confidence.

Nonetheless, the consensus view on MU stock is strongly optimistic, with a "Strong Buy" rating overall. Among 30 analysts covering the stock, opinions include 23 "Strong Buys," three “Moderate Buys,” three “Holds,” and one "Strong Sell." The stock’s mean price target of $127 represents a 61.7% premium to current price levels.