Micron Technology (MU) Q1 2026 earnings summary

Executive summary

• Fiscal Q1 2026 revenue, gross margin, and EPS exceeded the high end of guidance, setting new records across all business units and product lines, driven by strong execution, tight supply, and robust AI-related demand.

• HBM supply for calendar 2026 is fully contracted, with HBM TAM projected to reach $100 billion by 2028, two years ahead of prior outlook, and HBM4 leading the industry.

• Memory's role in AI is now strategic, with advanced memory essential for real-time processing in data centers and edge applications.

• Anticipates further records in revenue, gross margin, EPS, and free cash flow for Q2 and full fiscal year 2026.

• Achieved significant productivity gains and operational efficiencies through widespread internal AI adoption.

Financial highlights

• Fiscal Q1 2026 revenue was $13.64 billion, up 21% sequentially and 57% year-over-year, setting a quarterly record for the third consecutive quarter.

• DRAM revenue reached $10.8 billion (79% of total), up 69% year-over-year; NAND revenue was $2.7 billion (20% of total), up 22% year-over-year.

• Consolidated gross margin was 56.8%, up 11 percentage points sequentially and 18.8 points year-over-year.

• Operating income was $6.4 billion, with a 47% operating margin, up 12 points sequentially and 20 points year-over-year.

• Non-GAAP diluted EPS was $4.78, up 58% sequentially and 167% year-over-year; net income was $5.24 billion.

• Free cash flow was $3.9 billion, a quarterly record, with $8.4 billion in operating cash flow and $4.5 billion in CapEx.

Outlook and guidance

• Fiscal Q2 2026 revenue expected at $18.7 billion (±$400 million), gross margin at 68% (±100 bps), and EPS at $8.42 (±$0.20).

• Fiscal 2026 CapEx projected at $20 billion, up from $18 billion, weighted to the second half.

• Free cash flow expected to strengthen in Q2 and significantly increase year-over-year in fiscal 2026.

• Industry demand for DRAM and NAND is expected to outpace supply through and beyond 2026.

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