Micron Technology (MU) Q1 2026 Post Call earnings summary

Executive summary

• Q1 2026 revenue reached $13.64B, up 57% year-over-year and 21% sequentially, driven by strong DRAM and NAND sales, especially in AI, cloud, and data center markets.

• Net income rose to $5.24B, with EPS more than doubling year-over-year; gross margin improved to 56%, reflecting higher prices and cost reductions.

• All business units achieved record results, with CMBU revenue doubling and significant gains in MCBU and AEBU.

• Strategic investments in capacity, R&D, and advanced manufacturing continue, supported by government incentives and new fabs in Idaho, New York, Japan, Singapore, and India.

• HBM supply for 2026 is fully committed, with HBM4 leading the industry and significant unmet demand projected.

Financial highlights

• DRAM revenue increased 69% year-over-year, driven by a mid-30% increase in average selling prices and a mid-20% increase in bit shipments; NAND revenue rose 22% year-over-year.

• Gross margin: 56% (Q1 2026), operating income: $6.14B, net income: $5.24B, diluted EPS: $4.66.

• Cash from operations: $8.41B; adjusted free cash flow: $3.9B; cash and marketable investments: $12.02B.

• $2.7B in debt paid down and $300M in shares repurchased in Q1 2026.

• Dividend of $0.115 per share declared for Q1 2026.

Outlook and guidance

• FY26 capex projected at ~$20B, weighted to the second half, with ongoing investments in new fabs and technology.

• FQ2-26 revenue guidance: $18.7B ± $400M; gross margin: 68% ± 1%; opex: $1.38B ± $20M; EPS: $8.42 ± $0.20.

• Bit shipment growth for FY26 expected to be 20%, in line with market demand; modest sequential growth expected in Q2.

• Management expects sufficient liquidity for at least the next 12 months and beyond.

• HBM supply for 2026 is fully committed, with significant unmet demand projected to persist.