Micron Technology (MU) investor relations material

Executive summary

• Achieved record revenue, gross margin, and net income for Q4 and FY26, driven by AI-related demand, strong operational execution, and strategic customer agreements, with incentive compensation increased for all employees.

• Fiscal 2026 revenue was 3.5x last year's record, with data center revenue up fourfold and DRAM revenue surpassing $100B.

• Fiscal 2027 is expected to outperform 2026, with tighter supply-demand conditions projected for memory and storage and over 75% of 2027 shipments already committed.

• Structural supply constraints persist due to slow cleanroom buildouts and increasing complexity in HBM, limiting industry supply growth despite rising demand.

• HBM shipments are projected to outpace conventional DRAM, with significant price increases for 2027 and ongoing co-design efforts with key customers for advanced HBM4E products.

Financial highlights

• Q4 2026 revenue reached $54.23B, up from $41.46B in Q3 and $11.32B in Q4 2025; full-year revenue was $133.19B, up from $37.38B in FY25.

• FQ4-26 non-GAAP gross margin: 87.0%; operating income: $44.64B; net income: $38.40B; EPS: $33.42.

• FY-26 non-GAAP net income: $86.76B (65% of revenue); EPS: $75.52.

• Cash from operations in FY-26: $89.68B; adjusted free cash flow: $62.31B.

• Ended year with $73.48B in cash, marketable investments, and restricted cash.

Outlook and guidance

• Fiscal 2027 expected to be another record year with sequential revenue growth each quarter and gross margin expected to rise after Q1.

• FQ1-27 guidance: revenue $61.5B ± $1.5B, gross margin ~86.25%, EPS $38.15 ± $1.00.

• Operating expenses projected to rise by ~$2.5B in FY-27, mainly due to higher R&D and incentive compensation.

• Market conditions are expected to remain tight through 2028, supporting sustained strong financial performance and margin expansion.

• Construction CapEx is increasing, primarily for cleanrooms coming online in late 2028 and beyond, reflecting confidence in long-term demand.