Micron Earnings Show Record Quarter and Tight Supply
Micron earnings showed record results and guidance; management said supply likely to stay tight as capex rises, shaping trader positioning.
KEY TAKEAWAYS
- Micron reported record fiscal Q4 revenue of $54.2 billion and about $44.0 billion operating cash flow.
- Management said supply would remain tight through fiscal 2027 and 2028, supporting pricing and margins.
- Fiscal 2027 capital expenditures were guided higher with first-half capex about $25.0 billion, raising startup cost pressure.
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Micron Technology Inc. (MU) reported record fiscal fourth-quarter and full-year results on Sept. 30, 2026, and provided fiscal Q1 2027 guidance. Management said memory supply is likely to remain tight through fiscal 2027 and 2028 as capital spending increases.
Record Quarter and Guidance
Micron posted record fiscal fourth-quarter revenue of $54.2 billion for the quarter ended Sept. 3, 2026. GAAP net income was $37.7 billion, or $32.87 per diluted share, and non-GAAP net income was $38.4 billion, or $33.42 per diluted share. Operating cash flow for the quarter was about $44.0 billion. For fiscal 2026, the company reported revenue of $133.2 billion, up from $37.4 billion a year earlier, with GAAP net income of $85.0 billion, or $74.33 per diluted share, and non-GAAP net income of $86.8 billion, or $75.52 per diluted share.
Micron’s guidance for fiscal Q1 2027 projects revenue of $61.5 billion, plus or minus $1.5 billion. GAAP and non-GAAP gross margins are expected near 86.0% and 86.3%, respectively, with operating expenses around $2.3 billion GAAP and $2.1 billion non-GAAP. Diluted EPS guidance is $37.84, plus or minus $1.00 GAAP, and $38.15, plus or minus $1.00 non-GAAP. The board declared a quarterly dividend of $0.15 per share payable Oct. 29, 2026, to shareholders of record on Oct. 14, 2026. “The following table presents Micron’s guidance for the first quarter of 2027.” [source:1]
Supply, Pricing and Capital Plans
Management said demand for memory and storage remains stronger than expected, with supply-demand conditions likely to stay tight through fiscal 2027 and 2028. More than 75% of fiscal 2027 shipments are already committed through strategic customer agreements. The company significantly increased pricing for high-bandwidth memory (HBM) for calendar 2027 to narrow the profitability gap with conventional DRAM.
For fiscal Q1 2027, management guided to single-digit sequential bit growth in both DRAM and NAND product lines, alongside double-digit sequential cost growth. Capital expenditures for fiscal 2027 will rise, focusing on construction and cleanroom capacity for production coming online in late calendar 2028 and beyond. First-half fiscal 2027 capital expenditures are expected to total about $25.0 billion, including roughly $11.5 billion in fiscal Q1. Management plans to increase capital return starting Dec. 9, 2026, ultimately aiming to return 100% of excess cash to shareholders, primarily through share repurchases.
The company’s results and commentary highlight a tradeoff: tight supply and stronger pricing support margin expansion, while increased spending on new facilities and startup costs will create offsetting cost pressures shaping margin durability.
