Micron Q1 Earnings Top Estimates, Guidance Rises
Micron Q1 earnings topped estimates with record revenue and EPS while its Q2 revenue guide topped Street, sparking an after-hours rally.
KEY TAKEAWAYS
- Record Q1 revenue of $13.6 billion, a 57.0% year-over-year increase.
- Adjusted EPS $4.78 beat consensus $3.91, a 22.3% surprise.
- Second-quarter revenue guidance set above Street, citing AI-driven HBM demand and pricing.
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Micron Technology (MU) reported record fiscal first-quarter 2026 results for the period ended Nov. 28, 2025, with revenue and adjusted earnings per share surpassing expectations. The company set second-quarter revenue guidance above Wall Street estimates, citing accelerating AI demand for high-bandwidth memory (HBM).
Record Quarter Results
Micron said in a Dec. 17, 2025, press release that revenue reached $13.6 billion, a 57.0% increase from $8.7 billion a year earlier. GAAP net income rose to $5.2 billion from $1.9 billion. Adjusted (non-GAAP) earnings were $4.78 per share, up from $1.79 a year earlier and above the consensus estimate of $3.91, representing a 22.3% surprise. The company described the quarter as having record gross margin and its highest-ever free cash flow. Shares rose 5.4% in after-hours trading following the release.
Outlook and AI Demand
Micron set second-quarter revenue guidance above Wall Street estimates, attributing the outlook to strong pricing and tight supply in advanced memory, particularly HBM for AI accelerators and servers. Management highlighted broad AI server and data-center deployments as the main demand driver, alongside signs of stabilization in PCs and smartphones supporting DRAM and NAND pricing.
Executives emphasized supply discipline and noted that memory remains cyclical. They signaled continued elevated capital spending to expand capacity and transition to advanced technology nodes while capturing AI-related trends. The outlook assumes sustained AI deployments by cloud providers and enterprises, improving non-server markets, and no major new supply shocks or regulatory disruptions beyond known constraints. No new mergers, regulatory approvals, or enforcement actions were announced in the quarter.
The after-hours rally reflected investor enthusiasm for near-term AI demand, but management’s focus on discipline and capital intensity highlights the challenge of scaling capacity for AI workloads.
