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Micron reported Q4 FY2026 revenue of $54.2 billion, which was above the consensus revenue estimate of $51.0 billion, and adjusted EPS of $33.42, above the consensus estimate of $31.61. The company reported that revenue was 379.3% higher than a year earlier, while diluted EPS was $32.87, compared with $2.83 in Q4 FY2025. Micron reported gross margin of 86.8%, up 42.1 percentage points from a year earlier, and operating margin of 80.7%, up 48.4 percentage points.
Mark Murphy said DRAM represented 73.0% of fiscal Q4 revenue and NAND represented 26% of revenue, with higher pricing and bit shipments driving growth in both businesses. Micron reported free cash flow of $32.9 billion, compared with $72.0 million a year earlier.
| Q4 FY2026 | Q4 FY2025 | Change | |
|---|---|---|---|
| Revenue | $54.2 billion | $11.3 billion | 379.3% |
| Diluted EPS | $32.87 | $2.83 | 1,061.5% |
| Gross margin | 86.8% | 44.7% | 42.1 percentage points |
| Operating margin | 80.7% | 32.3% | 48.4 percentage points |
| Free cash flow | $32.9 billion | $72.0 million | 45,543.1% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $33.42 | $31.61 | Beat by 5.73% |
| Revenue | $54.2 billion | $51.0 billion | Beat by 6.32% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Sanjay Mehrotra said AI-driven demand had strengthened since the prior earnings call and that Micron expects memory and storage supply-demand conditions to be tighter in fiscal 2027 and 2028 than in 2026. He said demand for larger AI models, longer context lengths and greater concurrency was increasing memory and storage requirements, while new fabrication capacity takes time to ramp. Mehrotra said Micron did not have visibility on when industry supply and demand would return to balance.
Mehrotra said Micron had signed 26 strategic customer agreements expected to represent over 35% of revenue through 2030, and that the agreements and extensions carried $32.0 billion of customer financial commitments. Mark Murphy said the agreements had approximately $150.0 billion of remaining performance obligations, representing only agreements with determined pricing frameworks. Mehrotra also said more than 75% of Micron’s 2027 output was already committed across strategic-agreement and other customers.
Mehrotra said Micron had completed agreements for the vast majority of its calendar 2027 HBM supply at significantly higher prices than in 2026, which he said would narrow the gross-margin gap with conventional DRAM. He also said the company saw opportunities for a richer product mix relative to competitors through higher-value memory and storage products.
In response to questions about gross margins, Murphy said the fiscal Q1 outlook reflected higher incentive-compensation costs absorbed into inventory, startup costs and other costs. Murphy said Micron anticipated fiscal Q1 would be the floor for gross margins in fiscal 2027 and expected higher gross margins for the rest of the year. Responding to questions on investment, Murphy said fiscal 2027 capital spending would shift more toward construction than equipment, while Mehrotra said Micron would add capacity in line with demand and market conditions.
Guidance
Micron expects Q1 FY2027 revenue of $61.5 billion, plus or minus $1.5 billion, and non-GAAP diluted EPS of $38.15, plus or minus $1.00. The company expects non-GAAP gross margin of 86.3%, non-GAAP operating expenses of $2.1 billion and a tax rate of 15.5% for Q1 FY2027 and FY2027. Micron expects Q1 FY2027 capex of $11.5 billion and H1 FY2027 capex of $25.0 billion, and it projects operating expenses to increase by approximately $2.5 billion in FY2027.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| EPS, non-GAAP | Q1 FY2027 | $38.15, ± $1.00 | — | New |
| EPS, GAAP | Q1 FY2027 | $37.84, ± $1.00 | — | New |
| Operating expenses, non-GAAP | Q1 FY2027 | $2.1 billion | — | New |
| Operating expenses, GAAP | Q1 FY2027 | $2.3 billion | — | New |
| Gross margin, non-GAAP | Q1 FY2027 | 86.3% | — | New |
| Gross margin, GAAP | Q1 FY2027 | 86.0% | — | New |
| Revenue, non-GAAP | Q1 FY2027 | $61.5 billion, ± $1.5 billion | — | New |
| Revenue, GAAP | Q1 FY2027 | $61.5 billion, ± $1.5 billion | — | New |
| Tax rate | Q1 FY2027 and FY2027 | 15.5% | — | New |
| Operating expenses | FY2027 | $2.5 billion | — | New |
| Capex | H1 FY2027 | $25.0 billion | — | New |
| Capex | Q1 FY2027 | $11.5 billion | — | New |