Micron Technology, Inc.
MU · Nasdaq
Next quarter
Reports Dec 16, 2026.
Consensus is $37.93 EPS for Nov 2026 across 9 estimates, ranging $37.72 to $38.56.
MU Aug 2026
- 5.67%
- +3.03%
- $31.41
- $33.19
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Highlights
- Record quarter: Fiscal Q4 revenue was $54.23 billion, up 30.8% sequentially and 379% year over year; GAAP diluted EPS was $32.87 and non-GAAP diluted EPS was $33.42.
- EPS beat: The supplied consensus comparison shows EPS of $33.19 versus $31.41 expected, a 5.7% beat. Micron’s release separately reports GAAP diluted EPS of $32.87 and non-GAAP EPS of $33.42.
- Exceptional margins: GAAP gross margin reached 86.8%, versus 84.6% in Q3 and 44.7% a year ago; GAAP operating margin was 80.7%, compared with 80.4% and 32.3%, respectively.
- Data center strength: Core Data Center revenue rose to $18.00 billion from $11.52 billion in Q3, while Cloud Memory revenue increased to $16.28 billion from $13.77 billion.
- Record fiscal year: FY2026 revenue was $133.19 billion versus $37.38 billion in FY2025; GAAP net income was $84.97 billion versus $8.54 billion.
- Strong Q1 outlook: Micron guided to fiscal Q1 revenue of $61.5 billion ± $1.5 billion, non-GAAP gross margin of about 86.25%, and non-GAAP EPS of $38.15 ± $1.00.
- Tight supply outlook: Management said more than 75% of FY2027 shipments are committed, demand is strengthening into 2028, and the company has no line of sight to when industry supply and demand will balance.
- Cash generation and investment: Q4 operating cash flow was $43.97 billion and adjusted free cash flow was $33.20 billion; FY2026 net capital investment was $27.37 billion.
Analysis
Micron’s fiscal Q4 was a record quarter, with revenue of $54.23 billion rising 30.8% from Q3 and nearly fivefold from $11.32 billion a year earlier. GAAP diluted EPS of $32.87 and non-GAAP EPS of $33.42 compare with Q3’s $24.67 and $25.11, and year-ago figures of $2.83 and $3.03. The supplied consensus comparison lists EPS at $33.19 versus $31.41 expected, a 5.7% beat; the release’s GAAP and non-GAAP measures are reported separately. GAAP gross margin expanded to 86.8% from 84.6% sequentially and 44.7% year over year, reflecting sharp pricing and a richer product mix. Core Data Center and Cloud Memory led revenue, while all four business units reported sequential growth.
The more consequential message was management’s confidence that tight supply and robust AI-related demand extend beyond FY2027. It cited server growth, emerging CPU demand from agentic workloads, and HBM’s increasing share of industry capacity as constraints on supply growth; over 75% of FY2027 shipments are committed. Strategic customer agreements are growing, and Micron said it cannot see when supply and demand will rebalance. The outlook points to further near-term growth: Q1 revenue guidance is $61.5 billion ± $1.5 billion and non-GAAP EPS is $38.15 ± $1.00. Cash generation was substantial, but investment is rising, particularly in clean-room construction intended to support capacity from late 2028 onward.
Revenue and margins
- Top line: Q4 revenue of $54.23 billion increased from $41.46 billion in Q3 and $11.32 billion in Q4 FY2025.
- Profitability: GAAP operating income was $43.75 billion, up from $33.32 billion sequentially and $3.65 billion a year earlier. GAAP net income was $37.70 billion versus $28.24 billion and $3.20 billion, respectively.
- Margins: GAAP gross margin rose to 86.8% from 84.6% sequentially and 44.7% year over year. GAAP operating margin was 80.7%, slightly above Q3’s 80.4% and well ahead of 32.3% a year ago.
- Earnings comparison: The provided consensus data gives reported EPS of $33.19 against $31.41 expected, or 5.7% above consensus. Micron’s release lists GAAP diluted EPS of $32.87 and non-GAAP diluted EPS of $33.42, versus $24.67 and $25.11 in Q3.
Data center mix
- Core Data Center: Revenue climbed 56% sequentially to $18.00 billion from $11.52 billion. Gross margin was 90% and operating margin 85%, both higher than Q3’s 87% and 83%.
- Cloud Memory: Revenue rose to $16.28 billion from $13.77 billion. Gross margin held at 83%, while operating margin eased to 76% from 78%.
- Mobile and Client: Revenue increased to $13.11 billion from $11.52 billion despite sequential bit-shipments declining for a second quarter. Management attributed revenue growth to pricing and mix, and pointed to demand for higher-content premium PCs and flagship phones.
- Automotive and Embedded: Revenue advanced to $6.82 billion from $4.63 billion; gross margin increased to 84% from 79% and operating margin to 79% from 75%.
Demand and supply
Management described demand as strengthening into both FY2027 and 2028, citing continued server growth and a new CPU-memory demand stream as agentic AI workloads spread. It said server units are growing at a high-teens rate and that customers are maximizing compute shipments with available memory, leaving latent demand for higher memory content. On supply, HBM is expected to grow faster than conventional DRAM through 2028, using more capacity and facing higher trade ratios as products become more complex. Technology-node transitions bring diminishing bit-growth benefits, while new clean rooms take years to build and qualify and several quarters after opening to deliver meaningful shipments. Micron said it has no line of sight to when supply and demand will balance.
Customer agreements
- Commitments: More than 75% of FY2027 shipments are committed. Management said it signed 10 new strategic customer agreements during Q4, bringing the total to 26, and has begun extending customer discussions toward 2028 and beyond.
- Coverage: The agreements cover DRAM and NAND across all business units. Management described approximately 35% DRAM volume coverage and NAND bit volume somewhat above that level; it said the agreement share could increase as negotiations continue.
- Pricing framework: About three-quarters of SCA revenue has defined pricing frameworks, with the remainder open to periodic negotiation or market-linked pricing. New agreements reflect current market conditions and expected tightness, while the company continues to use a range of structures.
Outlook and investment
- Fiscal Q1 guidance: Revenue is forecast at $61.5 billion ± $1.5 billion, non-GAAP gross margin at approximately 86.25%, and non-GAAP diluted EPS at $38.15 ± $1.00. The revenue midpoint is about 13% above Q4.
- FY2027 conditions: Management expects continued price increases at a more moderate pace and said margins should expand through the balance of FY2027 relative to Q1, supported by pricing and product mix, with start-up costs a partial offset. It also expects tight market conditions to remain supportive into 2028.
- Capital spending: FY2026 net capital investment was $27.37 billion, including $10.77 billion in Q4. Management said most of the planned increase in FY2027 construction spending is for clean-room space expected to become available in late 2028 and beyond; tools and production capacity will be added in line with demand.
- R&D and supply ramp: The CFO said FY2027 year-over-year R&D growth, excluding incentive-compensation effects, will exceed $1 billion. Management expects first wafer output from its Idaho facility in mid-calendar 2027, but noted that meaningful shipments follow later.
Full-year cash generation
- FY2026 results: Revenue reached $133.19 billion versus $37.38 billion in FY2025. GAAP operating income was $99.34 billion versus $9.77 billion, and GAAP net income was $84.97 billion versus $8.54 billion.
- Cash flow: Operating cash flow was $89.68 billion for the year, up from $17.53 billion; adjusted free cash flow was $62.31 billion versus $3.72 billion.
- Balance sheet and return: Micron ended the year with $73.48 billion of cash, marketable investments, and restricted cash. The board declared a quarterly dividend of $0.15 per share, payable October 29, 2026.
