Micron Stock Rallies After Record Quarter
Micron stock climbed after strong Q1 FY2026 results and upbeat Q2 guidance; sold-out HBM supply and capacity expansion spurred analyst target increases.
KEY TAKEAWAYS
- Micron posted record Q1 FY2026 revenue $13.6 billion and non-GAAP EPS $4.78, beating consensus.
- Management guided Q2 to $18.7 billion revenue and roughly 68% gross margin, lifting margin expectations.
- Sold-out HBM capacity and Powerchip Tongluo acquisition underpin near-term margin expansion.
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
Micron stock rose as Micron Technology reported record Q1 FY2026 earnings and issued strong Q2 guidance, driven by sold-out high-bandwidth memory (HBM) orders and planned capacity expansion that have reshaped near-term margin expectations.
Quarterly Results and Guidance
For the quarter ended November 2025, Micron reported revenue of $13.6 billion, up 56.7% year over year, and non-GAAP earnings per share of $4.78, beating the consensus of $3.77. Non-GAAP gross margin was 56.8%. The stronger-than-expected results shifted investor expectations for profit growth amid rising demand linked to artificial intelligence workloads.
Management set Q2 FY2026 guidance, for the quarter ending March 2026, calling for revenue of $18.7 billion, non-GAAP EPS of $8.42, and a GAAP gross margin near 68%, according to guidance issued on December 17, 2025. This outlook significantly raised short-term margin forecasts and became the main driver behind the recent stock re-rating.
HBM Supply, Capacity, and Market Response
Micron’s HBM supply is fully committed for calendar 2026 at locked-in prices, supporting near-term margin upside. Its HBM3E architecture offers roughly 30% better power efficiency than competitors. Sampling of HBM4 and HBM4e is underway. Industry estimates project the HBM market to grow from $35 billion in 2025 to $100 billion by 2028.
To expand output, Micron completed its acquisition of the Powerchip Tongluo P5 site in Taiwan, adding DRAM and HBM capacity. Meaningful shipments from Tongluo are targeted to begin in fiscal 2028, with construction of a second facility planned by the end of fiscal 2026. The company has also accelerated its Boise ID2 fab toward a 2027 opening and budgeted $20 billion in FY2026 capital spending focused on HBM expansion and extreme ultraviolet (EUV) lithography integration.
The stock closed at $451.56 on March 16, 2026, valuing Micron at $508.2 billion. Analysts raised price targets broadly, lifting the street average to $394.59. Several firms raised targets into the $500–$525 range, including TD Cowen to $500, Wells Fargo to $470, HSBC to $500, and RBC to $525. These upgrades reflect forecasts of a structural memory shortage through 2027 and Micron’s leadership in high-bandwidth memory.
Micron is scheduled to release Q2 FY2026 results on March 18, 2026, which will provide the next public update on the guidance and capacity assumptions driving recent analyst revisions.
