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 and robust AI-related demand in a tight supply environment.

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

• Memory's role in AI is now strategic, with advanced memory essential for real-time processing from data center to edge.

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

• Continued strategic investments in capacity expansion, R&D, and advanced manufacturing, supported by government incentives.

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.

• Operating income was $6.42 billion, with a 47% operating margin, up 12 points sequentially.

• Non-GAAP diluted EPS was $4.78, up 58% sequentially and 167% year over year.

Outlook and guidance

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

• Fiscal 2026 CapEx projected at $20 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.

• Ongoing investments in new fabs in Idaho and New York, with significant CHIPS Act funding secured.