Micron Technology announced that it will discontinue its Crucial consumer memory line, ending the sale of branded products to retailers, e‑tellers and distributors worldwide. The company will continue shipping Crucial products through the end of fiscal Q2 2026, after which the brand will be phased out.
The decision follows a strategic review that found the consumer segment no longer aligns with Micron’s focus on high‑performance memory and storage for data centers, artificial‑intelligence (AI) workloads, and enterprise markets. By divesting the consumer line, Micron aims to improve supply‑chain efficiency and support its larger, higher‑margin customers in faster‑growing segments. The move is expected to streamline operations and free up resources for investment in advanced technologies such as high‑bandwidth memory (HBM) and 1‑gamma DRAM.
Micron’s Q4 2025 results provide context for the pivot. Total revenue rose 46% to $11.32 billion, driven by a 56% share of revenue from the data‑center business and strong demand for AI‑enabled memory. Gross margin expanded to 41% from 24% in the prior year, reflecting a higher mix of high‑margin AI and enterprise contracts and improved operational leverage. The company’s earnings per share of $3.03 beat consensus of $2.77 by $0.26, a 9.4% beat, largely due to disciplined cost management and the favorable product mix.
Management highlighted that the earnings beat was a result of both pricing power in the data‑center segment and effective cost controls amid rising raw‑material costs. The company guided for Q1 2026 revenue of $12.5 billion and EPS of $3.75, maintaining its outlook for a 51.5% gross margin in that quarter, up from 41% in FY 2025. The guidance signals confidence in sustained demand for AI and enterprise memory, while the margin target underscores the company’s belief that the shift away from consumer products will accelerate profitability.
Chief Executive Officer Sanjay Mehrotra said, “Micron closed out a record‑breaking fiscal year with exceptional Q4 performance, and the exit of the Crucial consumer business is a strategic step that will allow us to focus on the high‑growth AI and data‑center markets.” Chief Business Officer Sumit Sadana added, “The AI‑driven growth in the data center has led to a surge in demand for memory and storage, and exiting the consumer line will improve supply and support for our larger, strategic customers.” Analysts noted that the announcement was met with a mixed market reaction: the earnings beat and margin expansion were viewed positively, while the exit of a long‑standing consumer brand raised short‑term concerns about revenue diversification.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.