Micron Technology

Key Figures — Fiscal Q4 2026 vs. Q3 2026 & Q4 2025

Metric	Q4 FY2026	Q3 FY2026	Q4 FY2025	QoQ Chg.	YoY Chg.
Revenue	$54.23B	$41.46B	$11.32B	+$12.77B	+379%
Non-GAAP EPS (diluted)	$33.42	$25.11	N/A (est. ~$1.18)	+$8.31	+33% QoQ
GAAP EPS (diluted)	$32.87	$24.67	$2.83	+$8.20	+1,062%
GAAP Net Income	$37.70B	$28.24B	$3.20B	+$9.46B	+1,078%
Non-GAAP Gross Margin	87.0%	84.9%	~22.6%	+210 bps	+6,440 bps
Operating Income	$44.64B	N/A	N/A	—	—
Operating Margin	82.3%	~68%	~6%	+~1,430 bps	+~7,630 bps
Operating Cash Flow	$43.97B	$25.39B	$5.73B	+$18.58B	+668%
Free Cash Flow	$33.20B	N/A	N/A	—	—
Cash & Investments (year-end)	$73.48B	—	—	—	—
DRAM Revenue	$39.80B	N/A	N/A	—	+343% YoY
Data Centre SSD Revenue	~$10B	N/A	<$1B	—	+>10x YoY
Quarterly Dividend / Share	$0.15	$0.15	$0.115	Flat	+$0.035
Full-Year FY2026 Revenue	$133.19B	—	$37.38B	—	+256%
Full-Year FY2026 Non-GAAP EPS	$75.52	—	~$8.35	—	+811%

Sources: Micron Q4 FY2026 press release (SEC 8-K, 30 Sep 2026); Quartr post-call summary; CNBC earnings report; Quartr dividend note.

Summary

Fiscal Q4 2026 set records in revenue, gross margin, and EPS, all exceeding guidance highs. Quarterly revenue rose 379.1% year-over-year to $54.23 billion, above analysts' expectations of $51.33 billion, and the company posted EPS of $33.42, beating the consensus of $31.72 by $1.70. The performance was driven by AI-related demand, strong operational execution, and strategic customer agreements, with fiscal 2026 revenue reaching 3.5 times last year's record and data centre revenue up fourfold year-over-year. Despite the stellar beat, investors appeared to shrug following the news, and the chip stock rose only modestly in the subsequent trading session — a reaction that may remind investors of Micron's often-overlooked headwind. While analysts estimate a 107% increase in revenue in fiscal 2027, for fiscal 2028 they forecast growth will fall to less than 8%, which could signal the beginning of the cyclical downturn sooner rather than later.

Detailed Analysis

Q1. Financial Performance — Key Metrics

CFO Mark Murphy confirmed that Micron delivered exceptional results to close out the fiscal year, with fiscal Q4 revenue, gross margin, and EPS all exceeding the high end of guidance. Revenue of $54.23 billion rose 31% sequentially and 379% from a year earlier; adjusted EPS of $33.42 was up 33% sequentially; gross margin reached 87%, up 210 basis points from the prior quarter; and operating income hit $44.6 billion with an 82.3% operating margin. Operating cash flow was $44.0 billion in the quarter; free cash flow was $33.2 billion; ending cash and investments totalled $73.5 billion; and the net cash position was $68.3 billion. For the full fiscal year, Micron achieved record revenue of $133.2 billion, up 256% year-over-year, while gross margins expanded to 81.1% — a 40 percentage point improvement from fiscal 2025 — and EPS increased 811% year-over-year to $75.52.

Q2. Top Contributors Identified by Management

CEO Sanjay Mehrotra highlighted that fiscal 2026 revenue was 3.5 times last year's record, with data centre revenue up fourfold. Fourth-quarter DRAM revenue increased 343% from a year ago to $39.8 billion, representing 73% of total sales. Data centre SSD revenue in fiscal Q4 was nearly $10 billion, more than 10 times the year-ago quarter, and was over two-thirds of total company NAND revenue. In HBM, revenue for fiscal Q4 2026 grew faster than total company revenue as the company ramped HBM shipments across a growing number of customers, and agreements for the vast majority of calendar 2027 HBM bit supply have been completed with significant price increases year-over-year, narrowing the gross margin gap with conventional DRAM. The company has secured long-term commitments through 26 Strategic Customer Agreements covering approximately 35% of production volume through 2030.

Q3. Key Detractors and Explanation

Part of the muted stock reaction is simple: expectations had already run far ahead of the numbers. After a year of sequential record quarters, a beat that matches what the market priced in does not move the stock much, even when the underlying growth rate of 379% year-over-year would be extraordinary for almost any other company. The other part of the explanation is that some investors are already looking past 2026 and 2027 toward the next phase of the memory cycle, when today's capacity investments eventually become tomorrow's supply. The memory chips Micron sells are commoditised; for now, demand is far ahead of supply, giving it tremendous pricing power. However, seasoned chip investors know these trends eventually reverse — when supply finally exceeds demand, Micron will have to cut production and slash prices just to clear its inventory. Additionally, Micron made the decision in fiscal Q4 to increase incentive compensation, which is most clearly visible in the operating expense line.

Q4." He added: "Over time, we expect to return 100% of our excess cash to shareholders."

Q&A HIGHLIGHTS

On HBM de-specification (Krish Sankar, TD Cowen): Analysts asked about one large customer reducing HBM specs. Management's view: customer optimisations may support unit growth but do not remove underlying memory demand.

On HBM pricing for calendar 2027 (CJ, analyst): Mehrotra: "As you know, for 2026, our prices for HBM were negotiated with our customers last year." He confirmed that agreements for the vast majority of calendar 2027 HBM bit supply have been completed with significant price increases year-over-year, narrowing the gross margin gap with conventional DRAM. Manish Bhatia further clarified: "The pricing for HBM, at least for us, we did comment that we have increased that pricing significantly for calendar year '27, which will reset at the beginning of the calendar year to narrow the profitability gap with conventional DRAM."

On DRAM industry supply growth (Timothy Arcuri, UBS): Mehrotra said Micron expects its DRAM supply to grow approximately in line with industry supply growth, and for calendar 2027 and 2028, expects industry DRAM bit shipments to grow approximately in the low 20s percentage range, with the industry expected to remain supply constrained in both years.

On capital intensity (Timothy Arcuri, UBS): Murphy responded: "You captured correctly that we gave you a first half capex number; we indicated the second half would be higher. Importantly, that mix of capital spend is shifting to more construction, and we gave you some commentary on that versus equipment. We would expect that trend to continue here next few years."

On incentive compensation and Q1 margin puts and takes (CJ, analyst): Murphy: "I will take this opportunity to just provide a bit more perspective on fiscal Q4 and fiscal Q1 to help walk you through the puts and takes on margin. In fiscal Q4, we made the decision to increase incentive compensation. You can see that most clearly in actually the OpEx number."

On China competition: Analysts asked about Chinese rivals, and Micron said its technology lead remains at least two nodes ahead.

Transcript sourced from: Investing.com (full transcript), Benzinga (full transcript), The Motley Fool / The Globe and Mail (full transcript), Alphastreet, Quartr, and the official Micron IR Prepared Remarks PDF (s25.q4cdn.com/621799436/files/doc_financials/2026/q4/Q4-FY26-Prepared-Remarks.pdf). Full audio and slides are available at investors.micron.com.