Micron Stock Rallies After Fiscal 2026 Results
Micron stock rose after fiscal 2026 results and Q1 2027 guidance showed big revenue gains; a $35.2B CHIPS-tied buyback may shape repurchase timing.
KEY TAKEAWAYS
- Following the filing, Micron reported fiscal 2026 revenue of $133.2 billion and Q4 non-GAAP EPS of $33.42.
- Fiscal Q1 2027 guidance calls for $60.0 billion to $63.0 billion revenue and non-GAAP EPS near $38.15.
- Management noted constrained memory supply and said more than 75% of fiscal 2027 shipments were committed.
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Micron Technology Inc. (MU) said on Sept. 30, 2026, that its fiscal 2026 results and fiscal first-quarter 2027 guidance reflected rising demand and a constrained memory supply. These factors are central to the outlook for Micron stock, as management highlighted committed shipments and a repurchase plan tied to the CHIPS Act.
Fiscal Results, Guidance, and Demand Outlook
For the 53-week fiscal year ended Sept. 3, 2026, Micron reported revenue of $133.2 billion, GAAP net income of about $85.0 billion, and diluted GAAP earnings per share of $74.33. The fiscal fourth quarter produced revenue of $54.2 billion, with non-GAAP diluted EPS of $33.42 and a non-GAAP gross margin of 87.0%.
The company’s fiscal first-quarter 2027 guidance calls for revenue between $60.0 billion and $63.0 billion, non-GAAP diluted EPS of $38.15 plus or minus $1.00, and a non-GAAP gross margin near 86.25%. Management expects sequential revenue growth across fiscal 2027 and described the first quarter as the gross-margin floor. Net capital expenditures are forecast at about $11.5 billion for the quarter and roughly $25 billion for the first half of fiscal 2027.
Management described a memory supply constraint and said it lacked visibility on when supply and demand would rebalance. More than 75% of fiscal 2027 shipments are already committed under pricing frameworks that include floors and ceilings. The company reportedly holds 26 strategic customer agreements structured as multi-year take-or-pay contracts covering more than 35% of estimated revenue through 2030.
Secondary reports link Micron’s outlook to AI-related data-center demand and tighter DRAM and NAND markets. The combination of long-term contracts and committed shipments extends revenue visibility into 2030, framing longer-term upside scenarios.
Capital Returns and Cash Position
Micron increased its share-repurchase authorization to $35.2 billion. Repurchases are expected to begin Dec. 9, 2026, but are subject to conditions in the company’s CHIPS Act direct-funding agreement, which may affect timing and pace.
At fiscal year-end, Micron held $73.5 billion in cash, marketable investments, and restricted cash. Operating cash flow totaled $44.0 billion in the fourth quarter and $89.7 billion for the fiscal year. The company declared a quarterly dividend of $0.15 per share on Sept. 30, payable Oct. 29 to shareholders of record Oct. 14.
Capacity additions support the medium-term outlook. The Idaho facility is expected to begin wafer production in mid-calendar 2027, and the new Taichung plant’s 2027 capacity was reportedly sold out as of Oct. 15, 2026. These factors, combined with committed shipments, contribute to extended revenue visibility.
The scale of Micron’s revenue and margins, multi-year customer commitments, and the sizable, CHIPS-conditioned repurchase authorization form the principal factual basis cited for sustained upside through the medium term, despite uncertainty about the timing of supply-demand rebalancing.
