In Micron’s earnings report, what’s worth scrutinizing more than revenue is the contract structure.
In the fourth fiscal quarter, revenue was $54.23 billion, up 379% year over year. The guidance for the first fiscal quarter of FY2027 is $61.5 billion (±$1.5 billion). Adjusted EPS is about $38.15. These numbers have already been beaten to death. The real change is in another set of figures: Strategy Customer Agreements (SCA) increased from 16 in the prior quarter to 26; committed amounts under customer long-term supply agreements rose from $22 billion in June to $32 billion, with most of it coming from customers’ cash prepayments; and Remaining Performance Obligations (RPO) jumped from about $100 billion to about $150 billion.
This isn’t just “selling product”—it’s “prepayment + price locking.” Customers pay with real cash upfront to secure future capacity and price ranges, while Micron turns its most cycle-sensitive storage business into as much visible long-term cash flow as possible. Some agreements extend out to 2031, covering more than 35% of revenue through 2030.
My view is: the key shift in this storage cycle isn’t how much prices went up, but that the pricing model has moved from “spot pricing follows the market” to “long-term contracts anchored.” This affects the valuation logic of $MUB more deeply than any single-quarter EPS. The market is willing to pay a premium for visibility. But stay clear-eyed: long-term contracts lock in not only upside, but also limit flexibility when things turn down.
What ordinary investors should watch next is volume and price: Will the number of SCA still keep rising next quarter? Will prepayments continue to increase? Are you treating $MUB as a cyclical stock, or as a long-term contract with high visibility?
#Micron performance beats expectations and raises guidance
In the fourth fiscal quarter, revenue was $54.23 billion, up 379% year over year. The guidance for the first fiscal quarter of FY2027 is $61.5 billion (±$1.5 billion). Adjusted EPS is about $38.15. These numbers have already been beaten to death. The real change is in another set of figures: Strategy Customer Agreements (SCA) increased from 16 in the prior quarter to 26; committed amounts under customer long-term supply agreements rose from $22 billion in June to $32 billion, with most of it coming from customers’ cash prepayments; and Remaining Performance Obligations (RPO) jumped from about $100 billion to about $150 billion.
This isn’t just “selling product”—it’s “prepayment + price locking.” Customers pay with real cash upfront to secure future capacity and price ranges, while Micron turns its most cycle-sensitive storage business into as much visible long-term cash flow as possible. Some agreements extend out to 2031, covering more than 35% of revenue through 2030.
My view is: the key shift in this storage cycle isn’t how much prices went up, but that the pricing model has moved from “spot pricing follows the market” to “long-term contracts anchored.” This affects the valuation logic of $MUB more deeply than any single-quarter EPS. The market is willing to pay a premium for visibility. But stay clear-eyed: long-term contracts lock in not only upside, but also limit flexibility when things turn down.
What ordinary investors should watch next is volume and price: Will the number of SCA still keep rising next quarter? Will prepayments continue to increase? Are you treating $MUB as a cyclical stock, or as a long-term contract with high visibility?
#Micron performance beats expectations and raises guidance