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Happy Thursday. If you keep CNBC on your TV tonight, you'll be able to catch Game 3 of the WNBA Playoffs between the Indiana Fever and Las Vegas Aces at 9 p.m. ET.
S&P 500 futures are higher this morning as the index looks to rebound from three straight losing sessions.
Here are five key things investors need to know to start the trading day:
1. Home stretchWall Street has officially entered the last quarter of the calendar year, but isn't heading into the final three-month stretch of 2026 with too much momentum.
Here are the moves to know:
The Dow Jones Industrial Average fell more than 4% in September, snapping its five-month winning streak.The S&P 500 recorded its third losing month of the last four, but the index was still able to end the third quarter in the green.The Nasdaq Composite outperformed in September, aided in part by Meta's biggest one-month rally since 2022.The 10-year and 30-year Treasury yields continued climbing to cap off the month. The 10-year rose 4 basis points overnight to hit its highest level since 2002.With respective gains of more than 14% and 5%, Brent and WTI crude each saw their third straight positive month.Follow live market updates here.2. Mic dropMicron beat Wall Street's expectations on both lines in the fiscal fourth quarter, reporting an 11-fold increase in data center revenue during the period. The memory maker also offered better-than-expected guidance for the current quarter.
Despite the strong report, shares ticked slightly lower in premarket trading. The stock is coming off a monster rally of more than 500% over the last 12 months as it reaps the benefits of the AI boom's memory supply crunch.
Don't miss CEO Sanjay Mehrotra on CNBC's "Squawk on the Street" at 9 a.m. ET today. Watch live on CNBC or CNBC+.
3. High roadMinneapolis Federal Reserve President Neel Kashkari told CNBC's Steve Liesman last night that inflation is "still too high" and that the labor market is "pretty good" but not "great."
Kashkari's comments came even after August's PCE price index — AKA the Fed's favored inflation gauge — was softer than economists forecast. The Fed official told Liesman that inflation is "running at around a 3% rate," saying of Wednesday's report, "I didn't think the inflation data today really changed that story for me very much."
Speaking of the Fed: The central bank's inspector general said yesterday that while there were management failures in the Fed's renovation of its headquarters, it did not find grounds for a criminal referral. Even so, President Donald Trump called on former Fed Chair Jerome Powell to resign from the central bank's board following the report.
4. A for ArgonAlphabet began rolling out its most advanced AI model yet, Gemini 4 Argon, to some cyber partners Wednesday. As CNBC's MacKenzie Sigalos and Samantha Subin write, the long-awaited release comes nearly a year after Gemini 3 helped the company's standing in the AI race.
Argon sets new records for real-world software engineering and is tied for first on cybersecurity, according to the Google parent, which said it already uses the model internally to improve memory optimization at its data centers.
Speaking of data centers, Senate Democrats voted down a bill focused on data center energy prices yesterday, saying the legislation didn't go far enough. Sen. Josh Hawley also said that OpenAI CEO Sam Altman declined an invitation to testify at a Senate subcommittee hearing on the risks of AI going rogue.
5. Double shotEli Lilly said yesterday that its combo obesity regimen improved weight loss in a mid-stage trial compared to tirzepatide — its best-selling drug — alone. Lilly plans to start phase three trials at the end of this year.
The combo therapy pairs Lilly's experimental drug eloralintide with a small dose of tirzepatide, the active ingredient in Zepbound and Mounjaro. As CNBC's Annika Kim Constantino reports, the trial results raise hopes for an alternative for patients who haven't seen results from currently available GLP-1 products.
Ken Custer, president of Lilly Cardiometabolic Health, said that the combination regimen may "turn out to be a really winning approach." Lilly is expecting to alter the dosing regimens in the next phase of trials.
The Daily DividendNotice anyone missing from Trump's White House meeting with tech's top leaders? As CNBC's Kif Leswing writes, Apple notably didn't get a seat at the table on Tuesday.
— CNBC's Liz Napolitano, Christopher Hayes, Spencer Kimball, Katie Tarasov, Kif Leswing, Steve Liesman, Matt Peterson, Jeff Cox, Samantha Subin, MacKenzie Sigalos, Justin Papp, Annika Kim Constantino and Kif Leswing contributed to this report.
Caleigh Keating assisted in the production of this newsletter. Josephine Rozzelle edited this edition.
The US 10-year yield hits its highest level since 2002 as rising oil prices fuel a renewed selloff in global bonds. US equity futures get support from chipmakers following an upbeat forecast from Micron.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Many investment companies have stated the stock price is expected to continue to climb over the next 12 months. I have explained why the business support this. You can follow my analytical processes on this and other stocks, the markets, and the economy through my website also at tomdorseyentereprises.com
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
I believe the forward outlook for Micron remains favorable, as the memory shortage is set to continue well past 2027. The company reported quarterly results that topped expectations. Looking ahead, the company plans to spend about +$25B in CAPEX, with just under +$12B expected in Q1.
Key Takeaways Micron's Q4 revenues hit $54.23B as earnings rose more than 11-fold on pricing and AI demand.Data center SSD revenues neared $10B, while DRAM and NAND revenues reached record quarterly levels.Micron expects $61.5B in Q1 fiscal 2027 revenues and says over 75% of 2027 output is committed. Micron Technology, Inc. (MU - Free Report) reported fourth-quarter fiscal 2026 non-GAAP earnings of $33.42 per share, up more than 11-fold from $3.03 in the year-ago quarter. The bottom line also beat the Zacks Consensus Estimate by 5.73%. Strong pricing and AI-led memory and storage aided the robust bottom-line growth. Tight DRAM and NAND conditions lifted pricing, while AI demand supported data center growth.
Revenues surged 379.3% year over year to $54.23 billion and topped the Zacks Consensus Estimate by 6.33%. Data center SSD revenues approached $10 billion, more than 10 times the year-ago level and more than two-thirds of total NAND revenues.
MU’s Q4 Technology Mix Reflects Pricing StrengthDRAM revenues reached a record $39.77 billion, representing 73% of total revenues. DRAM revenues rose 27% sequentially as bit shipments increased in the mid-single-digit percentage range and average selling prices advanced in the high-teens percentage range.
NAND revenues were a record $14.10 billion, accounting for 26% of revenues. The figure increased 42% sequentially, with bit shipments up approximately 10% and average selling prices rising approximately 30%.
Micron’s Business Units Post Record RevenuesCloud Memory Business Unit revenues were a record $16.28 billion, up 18% sequentially. Core Data Center Business Unit revenues climbed 56% to a record $18.00 billion, supported by higher pricing and bit shipments.
Mobile and Client Business Unit revenues rose 14% sequentially to a record $13.11 billion, while Automotive and Embedded Business Unit (“AEBU”) revenues increased 47% to a record $6.82 billion. Higher pricing supported both businesses, with AEBU also benefiting from higher bit shipments.
MU’s Margins Expand Despite Higher CompensationNon-GAAP gross margin was 87%, up from 84.9% in the fiscal third quarter, driven primarily by higher pricing and strong execution, partly offset by mix. Non-GAAP operating income reached $44.64 billion, producing an 82.3% operating margin.
Non-GAAP operating expenses rose to $2.57 billion from $1.52 billion sequentially. Management attributed the increase mainly to higher incentive compensation for employees and a $300 million contribution to community investments.
Micron’s SCAs Extend Revenue VisibilityMicron has signed 26 strategic customer agreements, or SCAs, representing an estimated more than 35% of revenues through 2030. Three-quarters of those expected revenues have a defined pricing framework, while customer financial commitments under signed agreements and extensions reached $32 billion.
Remaining performance obligations tied to SCAs with determined pricing were approximately $150 billion. Management also said more than 75% of 2027 output is already committed across SCA and non-SCA customers, while agreements cover the vast majority of calendar year 2027 HBM bit supply at significantly higher year-over-year prices.
MU’s Cash Flow and Balance Sheet StrengthenOperating cash flow totaled $43.97 billion in the quarter. Net capital expenditures were $10.77 billion, resulting in adjusted free cash flow of $33.20 billion. In full fiscal 2026, the company generated operating and free cash flow of $89.68 billion and $62.31 billion.
Micron ended fiscal 2026 with $73.48 billion in cash, marketable investments and restricted cash. Debt stood at about $5.2 billion, leaving net cash of $68.30 billion. Customer cash deposits associated with SCAs totaled $12.7 billion at quarter-end.
Micron’s Q1 Fiscal 2027 Outlook Stays StrongFor the first quarter of fiscal 2027, Micron expects revenues of $61.5 billion, plus or minus $1.5 billion. Non-GAAP gross margin is projected at approximately 86.25%, operating expenses at about $2.06 billion and earnings at $38.15 per share, plus or minus $1.
Management expects fiscal 2027 to be another record year, with sequential revenue growth each quarter. It sees first-quarter gross margin as the floor for the year and projects fiscal 2027 operating expenses to increase by approximately $2.5 billion, mainly due to higher R&D and incentive compensation.
MU’s Market Outlook Points to Tight SupplyMicron expects memory and storage supply-demand conditions to be much tighter in calendar years 2027 and 2028 than in 2026. Industry DRAM bit shipments are projected to grow in the low-20s percentage range in both years, while NAND bit shipments are expected to increase in the mid-20s percentage range, with both markets remaining supply-constrained.
Micron expects industry HBM bit shipments to grow faster than conventional DRAM through calendar year 2028. MU plans higher fiscal 2027 capital spending than previously contemplated, with most of the increase directed to construction aimed at accelerating cleanroom availability in late calendar year 2028 and beyond.
MU’s Zacks Rank and Stocks to ConsiderMicron currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader Zacks Computer and Technology sector are NVIDIA (NVDA - Free Report) , Hewlett Packard Enterprise (HPE - Free Report) and FormFactor (FORM - Free Report) . At present, NVIDIA, Hewlett Packard Enterprise and FormFactor each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 earnings is pegged at $9.25 per share, up a penny over the past 30 days, indicating a year-over-year rise of 93.9%. NVIDIA shares have gained 22.5% YTD.
The Zacks Consensus Estimate for Hewlett Packard Enterprise’s fiscal 2026 earnings has moved northward by 10.4% to $3.81 per share over the past 30 days and calls for a year-over-year increase of 96.4%. Hewlett Packard Enterprise shares have jumped 166% YTD.
The Zacks Consensus Estimate for FormFactor’s 2026 earnings has been revised upward by 11 cents to $3.05 per share over the past 60 days, implying a year-over-year surge of 134.6%. FormFactor shares have soared 167.7% YTD.
Micron Chairman and CEO Sanjay Mehrotra joins 'Squawk on the Street' to discuss Q4 earnings, employee profit-sharing, the future of the company and more.
Index Dow Jones -0,45 % na 50676,84 b. S&P 500 -0,24 % na 7633,26 b. Nasdaq Composite -0,14 % na 26824,06 b.
Nejsledovanější americké indexy v úvodu obchodování mírně ztrácejí, zatímco výnosy desetiletých dluhopisů vystoupaly na nejvyšší úroveň od roku 2002 a ropa Brent se pohybuje blízko 100 USD za barel.
Nejsledovanější událost týdne, kvartální výsledky výrobce paměťových čipů Micron Technology (-2,7 %), překonaly očekávání. Utlumená reakce trhu podle analytiků ze Zacks Investment Research odráží skutečnost, že většina investorů na Wall Street pravděpodobně už překonání odhadů očekávala.
Výrazně se však po reportu výsledků daří poradenské společnosti Accenture (+22 %). Více podrobností naleznete zde.
Pouze technický propad zažívají akcie společnosti Corteva (-84 %). Společnost totiž dokončila odštěpení (spinoff) své divize zemědělských osiv Vylor. Akcionáři evidovaní k závěru obchodování dne 24. září obdrží za každou drženou akcii společnosti Corteva jednu akcii společnosti Vylor. Tyto akcie se dnes začínají obchodovat na NYSE pod tickerem VYLR.
Rostou akcie technologické společnosti Synopsys (+11 %), která dodává nástroje a služby pro design a výrobu polovodičů. Společnost na dni pro investory představila dlouhodobé cíle, které analytici vnímají jako silné. Společnost ve fiskálním roce 2027 očekává tržby v rozmezí 11,1 až 11,2 mld. USD. Očištěný zisk na akcii společnost cílí na 19,04 až 19,12 USD při očištěné provozní marži přibližně 44 %. Cíle pro složenou roční míru růstu (CAGR) na období FY26 až FY30 zahrnují růst tržeb v rozmezí středních desítek procent (mid-teens) a růst očištěného zisku ve středních dvacítkách procent (mid-20s%).
Daří se také akciím softwarové společnosti Fair Isaac Corp. (+8,4 %). Ředitel FHFA Bill Pulte v příspěvku na síti X uvedl, že ve středu večer hovořil s generálním ředitelem společnosti, aby zajistil, že FICO Direct bude ze strany agentury schválen. Podle Pulteho FHFA nezáleží na tom, kdo vyhraje, přičemž chtějí jen, aby si FICO a VantageScore konkurovaly, a ne aby fungovali jako kartel nebo zneužívali monopolní postavení. Tím narážel na nedávný vývoj. Program FICO Direct umožňuje přeprodejcům úvěrových zpráv počítat a distribuovat skóre FICO přímo hypotečním poskytovatelům.
Index S&P 500 -0,24 % na 7633,26 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1,1 % Základní materiály -1,6 % Informační technologie +0,2 % Reality -1,1 % Průmysl -0,2 % Finanční sektor -0,8 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Accenture (ACN) +22 % Corteva (CTVA) -84 % Synopsys (SNPS) +11 % Mosaic (MOS) -5,2 % Cognizant Technology Solutions Corp (CTSH) +10 % Smurfit Westrock (SW) -4,5 % Fair Isaac Corp (FICO) +8,4 % Paramount Skydance Corp (PSKY) -4,2 % Coherent Corp (COHR) +8,0 % Estee Lauder Cos (EL) -3,8 % Zdroj: Bloomberg
Micron Technology Inc. (NASDAQ:MU) remains a key beneficiary of AI-driven memory demand as investors weigh strong earnings momentum against questions about pricing power, future supply, and the durability of the current cycle.
Micron beat earnings and raised revenue and EPS guidance, keeping the AI-driven memory demand story intact even as analysts and CNBC’s “Fast Money” traders debated whether the stock’s extraordinary run leaves room for another major leg higher.
The stock gained almost 300% year-to-date, driven by an AI-driven boom in High-Bandwidth Memory (HBM) chips required to power NVIDIA Corp. (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD) accelerators. The company hit a $1 trillion market capitalization for the first time on May 26, 2026.
Wedbush Sees AI Demand Keeping Memory TightWedbush analyst Matt Bryson focused on Micron’s earnings guidance of more than $38 per share, which he said sits near the middle of the $36-to-$40 range he had heard from buy-side investors.
Bryson told CNBC on Thursday that his memory pricing checks continue to show increases, although at a slower pace. He said the reason behind Micron’s margin trajectory matters, particularly if greater high-bandwidth memory shipments supporting AI influence profitability.
He expects additional memory supply to arrive in late 2027 and 2028, noting that increasing supply historically ends memory cycles.
However, Bryson questioned whether supply can catch demand as AI accelerator and CPU deployments expand rapidly while memory capacity grows more slowly.
“So as long as you have this strength in AI, um, even if you get more supply coming on, it’s really unclear to me that supply catches demand,” Bryson said.
He also expects Micron to favor share buybacks after restrictions tied to its CHIPS Act funding expire on Dec. 9, given the cash the company has accumulated.
Fast Money Traders Focus on Margins and ExpectationsCNBC’s Fast Money trader Tim Seymour called the quarter good but said investors should focus more heavily on Micron’s margin profile than its previous data-center growth rates.
He pointed to pricing and longer-term contracts as important factors but warned that the memory story could face turbulence as additional competitors expand supply.
“I’m not chasing Micron here, but there was nothing wrong with this print,” Seymour said.
Steve Grasso, another trader, turned more constructive on Micron because expanding AI-agent use should increase inference workloads and memory demand.
“I think it could actually go higher, because agents create token demand. Tokens are inference, and inference runs on memory,” Grasso said.
Nathan Questions Size of Future Earnings BeatsTrader Dan Nathan took a more cautious view, arguing that Micron’s biggest earnings surprises may already be behind it.
He noted that the latest quarter beat consensus earnings and sales estimates by roughly 5%-6%, while current-quarter guidance was about 8% above expectations. That contrasts with the much larger surprises that helped drive Micron’s earlier rally.
Nathan said investors could increasingly price in best-case outcomes, which may explain the stock’s muted after-hours reaction.
Trader Guy Adami also highlighted Micron’s roughly 86% margins and supportive AI spending trends but cautioned that competition will eventually increase.
He pointed to the limited stock reaction despite options markets pricing in a roughly 7%-8% earnings move, suggesting investors may already have incorporated substantial optimism into the shares.
Price ActionMU Stock Price Activity: Micron Technology shares were up 0.37% at $1069.00 during premarket trading on Thursday, according to Benzinga Pro data.
Multiple prominent Wall Street analysts took Micron's (NASDAQ: MU) latest earnings report – published on September 30 – to provide their revised 12-month stock ratings and price targets.
Nvidia, AMD and Intel stocks moved higher before Thursday’s opening bell after Micron Technology delivered an earnings beat, reinforcing confidence that the AI infrastructure boom remains intact.
Micron itself moved the other way. The stock slipped about 1% in premarket trading despite reporting fiscal fourth-quarter revenue of $54.23 billion, adjusted earnings of $33.42 a share and guiding for roughly $61.5 billion of revenue this quarter.
Nvidia and AMD gained about 1%, while Intel also rose.
Financial commitments under long-term supply agreements rose to $32 billion from $22 billion in June, while management said memory supply could remain constrained through fiscal 2027 and 2028.
That matters for Nvidia, AMD and other AI-linked companies because high-bandwidth memory and DRAM are essential components of modern accelerators and servers.
D.A. Davidson’s Gil Luria told Yahoo Finance after the results that Micron’s performance was “a good indication for the whole data center build-out ecosystem”, because demand remained powerful even after expectations had risen sharply.
Ahead of the report, Luria noted that industry participants consistently said they did not have nearly enough memory.
Micron’s quarter is therefore more than a company-specific earnings report.
It is evidence that hyperscalers and data-centre operators are still spending aggressively enough to keep critical components scarce.
For Micron shareholders, the same numbers face a higher bar.
The shares had climbed roughly 280% in 2026 heading into earnings, turning extraordinary growth from a surprise into the central investment thesis.
Revenue beat consensus, adjusted earnings topped forecasts and the current-quarter sales outlook exceeded Wall Street expectations.
Deutsche Bank analyst Melissa Weathers said there was “some incremental squishiness on the margin front this quarter”, according to MarketWatch.
She maintained a Buy rating and $1,550 target but highlighted higher incentive-related costs affecting gross margins and operating expenses.
Micron reported an adjusted gross margin of 87% for the August quarter but guided to around 86.25% for November.
None of that points to weak demand, but shows how demanding the setup has become.
The US 10-year Treasury yield also climbed above 5.3% on Thursday, adding another valuation headwind as investors considered whether Micron deserved another rerating.
Micron is making its business more predictable through 26 strategic customer agreements, which cover more than 35% of projected revenue through 2030, with roughly three-quarters of that agreement-linked revenue governed by defined pricing frameworks.
That improves visibility and could reduce the brutal cyclicality associated with memory.
There is an irony, as more predictable revenue can also make outsized upside surprises harder to deliver.
Stifel analyst Brian Chin warned before the results that investors should expect “a more measured rate-of-upside than in recent quarters”, according to Barron’s.
He cited more revenue being covered by supply agreements and physical constraints on bit shipments.
Stifel expects DRAM shipment growth to slow to around 15% to 20% in 2027. Yet those constraints could keep prices and margins unusually high because supply remains below demand.
That is Micron’s new contradiction. Scarcity is excellent for pricing, but it also limits how many additional chips the company can sell.
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The memory chipmaker expects an even stronger fiscal 2027 Summary
Micron reported non-GAAP EPS of $33.42 on revenue of $54.23 billion, beating estimates of $31.72 and $51.33 billion, and guided to $61.5 billion.
Micron Technology MU was down 0.50% in premarket, after the memory chipmaker reported fiscal fourth-quarter non-GAAP EPS of $33.42 on revenue of $54.23 billion, topping estimates of $31.72 and $51.33 billion. Revenue rose from $41.46 billion in the prior quarter and $11.32 billion a year earlier. GAAP net income was $37.70 billion, or $32.87 a diluted share, and GAAP gross margin reached 86.8%, up from 44.7% a year ago.
For the full year, revenue more than tripled to $133.19 billion, and adjusted free cash flow reached $62.31 billion. Micron ended the year with $73.48 billion in cash, marketable investments and restricted cash, and declared a quarterly dividend of $0.15 a share. Micron also received $12.75 billion in customer contract deposits during the year.
The outlook points higher still. Micron guided first-quarter fiscal 2027 revenue to $61.5 billion, plus or minus $1.5 billion, with non-GAAP gross margin of about 86.25% and non-GAAP EPS of $38.15, plus or minus $1. CEO Sanjay Mehrotra said the company expects "an even stronger fiscal 2027" and is increasing investment in technology, products and manufacturing.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Wall Street consensus puts Micron near the top of every buy list, but one model sees something the bulls are missing. Before Q4 results land, here is what the numbers actually say about whether this memory supercycle has already run…
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Our 24/7 Wall St. price target for Micron (NASDAQ:MU | MU Price Prediction) is $1,040.98. The model is working from a price of $1,065.08, so the target means -2.26% downside over 12 months. The model rates the stock a hold.
Metric Value Current Price $1,065.08 Price Target from 24/7 Wall St. $1,040.98 Upside/Downside -2.26% Recommendation HOLD Confidence Level 90% Wall Street is far more optimistic. The consensus target is $1,520.76, with 9 Strong Buy, 35 Buy and 4 Hold ratings, zero Sells. The gap comes down to one question: how much of the memory upcycle is already in the price?
Why We Could Be Wrong Our target stands slightly below where Micron trades. Micron has a strong bull case, having signed 16 Strategic Customer Agreements (SCAs), multi-year supply contracts.
Fourteen carry about $100 billion in revenue at minimum contract prices. Fiscal Q4 guidance calls for record revenue. Either could trigger a rerating.
Micron’s Record Run Meets Fresh AI Jitters Before Q4 The stock is up 276.96% year to date and 15.26% over the past month. A 1.91% pullback last week as AI jitters hit the group ahead of fiscal Q4 results left shares below their 52-week high of $1,254.81.
Fiscal Q3 revenue came in at $41.46 billion, well ahead of the $35.25 billion estimate. Non-GAAP EPS of $25.11 beat the $20.2843 consensus, the seventh consecutive beat. Q4 guidance: $50 billion ± $1 billion revenue and $31 ± $1 non-GAAP EPS.
Why Bulls See $1,352 and Beyond Most SCAs are take-or-pay deals; customers pay for committed volumes whether or not they take delivery, running through the end of calendar 2030. Management says floor prices support margins “well above our peak quarterly margins in any past cycle.”
HBM4 has shipped more than $1 billion in revenue, with supply expected tight “beyond calendar 2027.” Fiscal 2027 EPS estimates have risen to $156.5298, up from $117.8618 90 days ago. Bull case target: $1,352.02.
What Could Derail Micron’s Memory Supercycle Memory remains cyclical. Q4 guidance assumes “a meaningful moderation in the rate of price increases.” Fiscal 2027 EPS estimates range from $106.89 to $221.27, showing significant uncertainty. Fiscal 2026 capex expected around $27 billion, with operating expenses rising about $1 billion in fiscal 2027. Bear case target: $773.30.
Micron expects $22 billion in customer deposits and commitments, with $24.4 billion in net cash at Q3 end. It is funding expansion from strength. The $325 million loss on debt prepayments in Q3 was a one-time charge.
Is Micron Cheaper Than NVIDIA and SanDisk? A fair comparison is NVIDIA (NASDAQ:NVDA), as its AI accelerators drive HBM demand. It trades at 25 times forward earnings versus Micron’s 7. The market pays up for computing and discounts memory.
SanDisk (NASDAQ:SNDK) competes directly in NAND flash. It trades at 8 times forward earnings and 23 times trailing, nearly in line with Micron. The market prices both memory manufacturers for a cyclical peak.
Company Forward P/E Trailing P/E Micron 7 24 NVIDIA 25 29 SanDisk 8 23 Our target means a P/E of about 24, in line with SanDisk’s trailing multiple. The target looks reasonable compared with these peers.
Hold Steady While Micron Proves the Cycle Has Changed The 24/7 Wall St. price target is $1,040.98, with a hold rating and 90% confidence. The model discounts peak-cycle earnings heavily.
A Q4 print at or above the $50 billion guide, with SCAs covering half of revenue, would make me constructive. I would stay patient if price increases slow faster than expected. For now, fundamentals support the current price, and Wall Street’s extra upside has to be earned.
Contact [email protected] for any questions or corrections.
Micron's Earnings Explode 379% as AI Memory Demand Stays Red-Hot Summary
Micron reported $54.23 billion in quarterly revenue and $33.42 in adjusted EPS, both above Wall Street expectations.
Micron Technology (MU) delivered a sharp increase in fiscal fourth-quarter results on Wednesday, with revenue and adjusted earnings exceeding Wall Street expectations as demand for memory used in artificial intelligence systems continued to lift results.
Revenue reached $54.23 billion, up from $11.32 billion a year earlier. Non-GAAP earnings rose to $33.42 per diluted share from $3.03, while operating cash flow increased to $43.97 billion from $5.73 billion.
For the fiscal first quarter, Micron expects revenue of $60 billion to $63 billion and adjusted earnings of $37.15 to $39.15 per share. The company also said it expects supply conditions across memory markets to remain tight through fiscal 2027 and 2028.
Micron ended fiscal 2026 with $73.48 billion in cash, marketable investments and restricted cash. It generated $62.31 billion in adjusted free cash flow for the year and plans to increase spending on manufacturing capacity as AI-related demand expands.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Micron just posted its eighth straight earnings beat and a stock gain that tops 270% for the year, yet the CEO openly admits he cannot see when the memory shortage ends. That combination of record results and blurry visibility raises…
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Micron Technology (NASDAQ:MU | MU Price Prediction) reported fiscal fourth-quarter revenue of $54.23 billion after the close on September 30, 2026. That beat the $50.972 billion consensus, and the stock barely moved.
Shares finished the regular session at $1,065.11, flat at 0%. That calm follows a 273.42% year-to-date gain, so much of the good news was already priced in.
The more important news came on the conference call, where Chief Executive Sanjay Mehrotra said: “We do not have line of sight to when supply and demand will return to balance.” Memory prices have historically risen and fallen in sharp cycles, but Mehrotra is describing a shortage with no visible end, and his guidance supports that.
A Quarter That Beat Wall Street and Micron’s Own Forecast Micron said revenue grew 379% from a year earlier, and adjusted earnings per share of $33.42 exceeded the $31.3542 consensus estimate for an eighth straight beat.
Micron Technology said gross margin reached 87%, above Micron’s prior forecast of roughly 86%. Margins that high suggest strong pricing power.
Micron guided fiscal first-quarter 2027 revenue to $61.5 billion, plus or minus $1.5 billion, and adjusted earnings per share to $38.15, plus or minus $1.00. Consensus was about $57 billion and about $35.14.
All of fiscal 2026 produced $133.188 billion in revenue and $75.52 in adjusted earnings per share. Chief Financial Officer Mark Murphy said the first quarter should be the floor for gross margin in fiscal 2027.
Why Memory Supply Stays Tight Through 2028 High-bandwidth memory, or HBM, stacks DRAM chips vertically beside an AI processor so data arrives fast enough to keep the chip working. Without it, an expensive accelerator waits on data.
Mehrotra said conditions will be “much tighter in fiscal 2027 and 2028.” He said, “More than 75% of our output is already committed for 2027.”
On HBM, Mehrotra said, “A large part of the volume is already sold out for 2027… and the prices are much higher than 2026.” Micron’s 26 strategic customer agreements all carry take-or-pay volumes, meaning customers pay whether or not they take delivery.
What Investors Are Worried About Instead Micron plans about $11.5 billion in fiscal first-quarter capital spending and about $25 billion in the first half of fiscal 2027. Heavy spending could pressure returns if demand cools off.
Micron bought back $650 million of stock in fiscal 2026, against $33.199 billion of free cash flow in the fourth quarter. Murphy said excess cash will be returned “primarily through share repurchase” once Micron reaches its target cash level, expected by the end of fiscal Q1.
What Comes Next for Micron Stock Micron’s outlook looks stronger after this report. Committed output, guidance above consensus, and a $68.3 billion net cash balance give earnings unusual visibility.
New supply arrives slowly. Most of the added spending goes to clean rooms opening from late calendar 2028.
The case breaks if customers trim orders or Micron cuts its outlook. Watch whether Micron announces the new buyback authorization Murphy promised before increased returns begin on December 9, 2026, and whether fiscal first-quarter revenue lands within guidance.
Contact [email protected] for any questions or corrections.
Ten of eleven S&P sectors dropped in September as oil and Treasury yields surged together, yet one corner of the market kept climbing and now sits at its highest concentration in years.
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Of the eleven Select Sector SPDR funds, only one rose in September 2026. The Technology Select Sector SPDR Fund (NYSEARCA:XLK) returned 5.08% from August 31 to September 30. The other ten fell by between 0.44% (communication services) and 7.57% (materials).
The VanEck Semiconductor ETF (NASDAQ:SMH) rose 9.41%. Over the same month, the S&P 500 slipped 0.4%. The Dow Jones Industrial Average fell 4.3%, so a narrow group of chip and AI names carried the market. September exposed a market built on one theme. It showed how little buffer the rest of the market had when oil and interest rates rose together.
The technology fund’s 5.08% is dividend-adjusted; the ten declining funds’ figures are price-only and exclude dividends. The claim also applies only to the funds. The communication services sector index rose 4.3% because it gives its largest platform companies bigger weights than the fund does.
Chips Carried Technology Higher AI demand drove the gain, and SMH beat XLK because chips led the advance. Rising shares included Micron (NASDAQ:MU | MU Price Prediction) and Intel (NASDAQ:INTC), and Microsoft (NASDAQ:MSFT) finished its best quarter since 1991.
Microsoft’s July results show the spending behind the rally. Its commercial remaining performance obligations reached $678 billion, up 84%, and its fiscal-year capital expenditures hit $115.95 billion, much of it flowing to chipmakers SMH holds. Somebody has to power, cool, and network that expansion. We highlighted seven of those suppliers in a free report on the AI infrastructure trade.
Oil and Yields Pulled Everything Else Down Brent crude rose about 14%, and the ten-year Treasury yield ended September at its highest level since 2002 after reaching 5.26% on September 29. Consumer confidence fell to its lowest reading since 2014.
Investors own utilities, real estate, and staples for steady dividends. When a Treasury pays more with no stock risk, those dividends are worth less, and shares fall until yields compete. That pattern fits declines of 6.61% in utilities, 7.25% in real estate and 5.15% in staples.
Real estate also borrows heavily, so higher rates lift its financing costs. Expensive fuel contracts household budgets, which helps explain the 6.65% drop in consumer discretionary. Even energy fell 3.85% despite costlier crude, which points to broad selling across sectors.
All that said, a single month is a thin basis for a trend. The S&P 500 still gained about 2% for the third quarter, and the Nasdaq Composite rose 2.5%.
Technology had run far before September. XLK is up 36.45% year to date, and SMH is up 69.11%, so the month extended leadership already concentrated, now facing the highest yields since 2002.
Bull and Bear Cases for Technology and Semiconductor Funds Contracted demand supports the bullish argument. Microsoft’s backlog shows AI spending is committed in signed contracts, making chip demand more visible than in past cycles.
Valuation under a 5.26% ten-year yield is the bearish concern. A fund up 69.11% in nine months has little room for any pause in data center spending.
My view is that the chip concentration is fragile. XLK holds software and platform companies alongside semiconductors, which makes it the stronger of the two funds, with its last price at $195.75.
October 2026 will test that view. If the ten-year yield closes the month above 5.26% and SMH still beats XLK, the view is wrong, but if SMH gives back its 9.41% September gain first, the split was a one-month event.
Contact [email protected] for any questions or corrections.
Výsledky společnosti Micron Technology na první pohled přinesly další mimořádně silné čtvrtletí, skutečný význam reportu však podle analytika Jakuba Blahy leží jinde než v samotném překonání odhadů.
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Tagy: Micron, výsledky, akcie, Výhled, AI, čipy, technologické akcie
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Výrobce paměťových čipů Micron Technology zveřejnil výsledky za čtvrtý kvartál fiskálního roku 2026, který skončil 3. září 2026. Tržby meziročně vzrostly o 379 % a spolu s očištěným ziskem na akcii překonaly odhady analytiků i horní hranici vlastního výhledu společnosti. Výhled na první kvartál fiskálního roku 2027 je rovněž výrazně silnější, než trh očekával, očištěná hrubá marže by však měla mírně klesnout, a to především kvůli vyšším motivačním odměnám zaměstnanců.
Výsledky společnosti Micron Technology (MU) za 4Q FY 2026 4Q FY 2026 Konsensus 4Q 2026 4Q FY 2025 Tržby (mld. USD) 54,23 51,49 11,32 Čistý zisk (mld. USD) 37,70 -- 3,20 Očištěný zisk na akcii (EPS, USD/akcie) 33,42 31,83 3,03 Výsledky za 4Q FY 2026 Tržby společnosti meziročně vzrostly o 379 % na 54,23 mld. USD. Mezikvartálně vzrostly o 31 %. Překonaly tak tržní očekávání 51,49 mld. USD.
Tržby z pamětí technologie DRAM dosáhly 39,8 mld. USD (73 % celkových tržeb) a mezikvartálně vzrostly o 27 %. Objem dodávek (v bitech) vzrostl mezikvartálně o střední jednotky procent, průměrné prodejní ceny se zvýšily o vyšší desítky procent (high-teens). Tržby z pamětí technologie NAND dosáhly 14,1 mld. USD (26 % celkových tržeb) a mezikvartálně vzrostly o 42 %. Objem dodávek (v bitech) vzrostl mezikvartálně přibližně o 10 %, průměrné prodejní ceny přibližně o 30 %.
Všechny čtyři divize vykázaly rekordní tržby. Nejrychleji rostla divize jádrových datových center (CDBU), jejíž tržby mezikvartálně vzrostly o 56 % a hrubá marže dosáhla 90 %. Tržby z pamětí HBM, které se využívají v data centrech pro účely umělé inteligence, rostly rychleji než tržby celé společnosti. Tržby z SSD pro datová centra dosáhly téměř 10 mld. USD, což je více než desetinásobek oproti stejnému kvartálu loňského roku, a tvořily přes dvě třetiny celkových tržeb z technologie NAND.
Tržby Micronu ve 4Q FY 2026 dle divizí
(mld. USD) Divize Tržby Konsensus Meziroční změna Jádrová datová centra (CDBU) 18,00 11,34 +1 042 %
Cloudové paměti (CMBU) 16,28 15,14 +258 % Mobilní a klientské zařízení (MCBU) 13,11 12,95 +249 % Automotive a vestavěné systémy (AEBU) 6,82 4,73 +376 % Očištěný hrubý zisk dosáhl 47,20 mld. USD oproti 5,17 mld. USD ve 4Q FY 2025. Očištěná hrubá marže meziročně vzrostla o 41,3 p. b. na 87,0 % a překonala tak tržní odhad 86,2 %.
Očištěný provozní zisk vzrostl na 44,64 mld. USD z loňských 3,96 mld. USD, přičemž projekce trhu byly na úrovni 42,75 mld. USD. Očištěná provozní marže zaznamenala meziroční růst o 47,3 p. b. na 82,3 %, což bylo mírně pod očekáváním 82,8 %.
Očištěné provozní náklady vzrostly na 2,57 mld. USD z loňských 1,21 mld. USD a byl tak vyšší než odhad 1,68 mld. USD. Výdaje na výzkum a vývoj (R&D) meziročně vzrostly o 83 % na 1,91 mld. USD, přičemž očekávání bylo 1,38 mld. USD. Na vyšších nákladech se podepsalo rozhodnutí společnosti navýšit motivační odměny za fiskální rok 2026 všem zaměstnancům.
Provozní hotovostní tok meziročně vzrostl na 43,97 mld. USD z 5,73 mld. USD, přičemž odhad trhu činil 33,87 mld. USD. Čisté kapitálové výdaje činily 10,77 mld. USD a očištěný volný hotovostní tok (FCF) tak dosáhl 33,20 mld. USD.
Počet uzavřených strategických zákaznických smluv (SCA) vzrostl na 26 (oproti 16 v minulém kvartálu). Podle aktuálních odhadů společnosti budou představovat více než 35 % jejích tržeb do roku 2030. Tři čtvrtiny těchto očekávaných tržeb mají pevně stanovený cenový rámec, většinou s cenovými pásmy s minimální a maximální cenou, u zbývající čtvrtiny se cena pravidelně vyjednává podle tržních cen. Některé smlouvy již sahají do roku 2031 a finanční závazky zákazníků vzrostly na 32 mld. USD, přičemž naprostou většinu tvoří hotovostní zálohy.
Výsledky za fiskální rok 2026 Za celý fiskální rok 2026 vzrostly meziročně tržby o 256 % na 133,19 mld. USD. Tržby z pamětí DRAM zaznamenaly meziroční růst o 252 % na 100,7 mld. USD a tržby z NAND vzrostly meziročně o 274 % na 31,8 mld. USD. Čistý zisk dosáhl 84,97 mld. USD a očištěný zisk na akcii 75,52 USD oproti 8,29 USD v předchozím roce. Provozní hotovostní tok vzrostl na 89,68 mld. USD a očištěný volný peněžní tok dosáhl 62,31 mld. USD.
Výhled na 1Q FY 2027 Firma pro první kvartál fiskálního roku 2027 očekává:
Tržby v rozmezí 60 až 63 mld. USD. Trh projektoval pouze 56,77 mld. USD. Očištěný zisk na akcii ve výši 37,15 až 39,15 USD. Odhad trhu byl na úrovni 36,02 USD. Očištěnou hrubou marži přibližně 86,25 %. Trh projektoval 86,7 %. Očištěné provozní náklady přibližně 2,06 mld. USD. Trh odhadoval 1,83 mld. USD. Čisté kapitálové výdaje přibližně 11,5 mld. USD. Fiskální rok 2027 má být podle společnosti dalším rekordním rokem s mezikvartálním růstem tržeb v každém kvartále. První kvartál by měl představovat dno hrubé marže pro celý fiskální rok. Většina navýšení motivačních odměn za fiskální rok 2026, která se týká výroby, byla ve 4Q zaúčtována do zásob a do hrubé marže se promítne až při prodeji těchto zásob, tedy především v 1Q FY 2027. Ve zbytku fiskálního roku 2027 společnost očekává vyšší hrubé marže při mírnějším tempu růstu cen. Provozní náklady by měly ve fiskálním roce 2027 vzrůst přibližně o 2,5 mld. USD, zejména kvůli vyšším výdajům na výzkum a vývoj a vyšším motivačním odměnám. Kapitálové výdaje budou oproti dřívějším plánům vyšší, většina navýšení připadne na výstavbu nových čistých prostor.
Tržní prostředí Management očekává, že nerovnováha mezi nabídkou a poptávkou po pamětech bude v kalendářních letech 2027 a 2028 výrazně vyšší než v roce 2026. Také uvedl, že poptávka od posledních výsledků dále zesílila. Objem dodávek DRAM v celém odvětví by měl v kalendářním roce 2026 vzrůst o střední dvacítky procent a v letech 2027 a 2028 přibližně o nižší dvacítky procent. U NAND společnost očekává v roce 2026 růst o nižší dvacítky procent a v letech 2027 a 2028 přibližně o střední dvacítky procent.
U HBM pamětí má Micron uzavřené dohody na naprostou většinu své nabídky pro kalendářní rok 2027, a to s výrazným meziročním zvýšením cen. Společnost také spolupracuje s Nvidií na první zakázkové implementaci HBM4E v odvětví. Počet dodaných serverů by měl v kalendářních letech 2026 i 2027 růst o vyšší desítky procent (high-teens).
Komentář CEO „Micron dosáhl rekordních výsledků za fiskální rok 2026 a očekáváme ještě silnější fiskální rok 2027,“ uvedl generální ředitel Sanjay Mehrotra. „AI se mění v superinteligenci (SI) a paměti zvyšují tuto inteligenci i konkurenceschopnost platforem našich zákazníků. Navyšujeme investice do technologií, produktů a výroby, abychom společně se zákazníky posouvali SI kupředu, a naše strategické zákaznické smlouvy poskytují dodatečnou jistotu ohledně udržitelnosti finanční výkonnosti Micronu.“
Pohled analytiků Analytici z Morgan Stanley uvedli, že u Micronu mezikvartální zlepšování zpomalilo, ale síla byznysu je nadále jasně patrná. Zlepšování hrubé marže bude od této chvíle postupné, což se dá očekávat, když společnost překračuje hranici 85 % hrubé marže, a v krátkodobém horizontu působí určité negativní nákladové vlivy.
Analytici z JPMorgan poznamenali, že Micron vykázal přesvědčivé překonání odhadů a zvýšení výhledu, doprovázené výrazným navýšením pokrytí strategickými zákaznickými smlouvami (SCA). Výhled na následující kvartál je výrazně nad odhady Wall Street, a to díky cenám a podílu HBM v produktovém mixu.
Analytici z Vital Knowledge uvedli, že hlavní čísla zisku na akcii a tržeb za 4Q byla nad plánem a výhled na 1Q fiskálního roku je také lepší, ale očekávání jsou v celém tomto segmentu velmi vysoká, takže investoři mohou zprávu Micronu vnímat jako ne o moc lepší než v souladu s očekáváním. Komentář k nabídce a poptávce je podle analytiků pozitivní a objem nevyřízených zakázek roste, jak další zákazníci podepisují strategické zákaznické smlouvy, což je pozitivní z hlediska udržitelnosti zisku na akcii, ale zároveň to omezuje potenciál dalšího růstu zisků.
Analytici z Lynx Equity Strategies uvedli, že jde o pěkné překonání odhadů a zvýšení výhledu a hrubá marže se drží dobře. Poznamenávají, že investoři se obávali, že nedostatek nabídky v roce 2028 poleví, až budou spuštěny nové kapacity, ale prohlášení vedení naznačuje, že nárůst poptávky v roce 2028 převýší nárůst nabídky.
Analytici ze Zacks Investment Research poznamenali, že Micron rozdrtil očekávání Wall Street ve všech ukazatelích a kromě skvělého kvartálu nezklamal ani výhled Micronu na 1Q 2027, přičemž CEO Sanjay Mehrotra uvedl, že fiskální rok 2027 bude ještě silnější. Hrubé marže podle nich ukazují obrovskou cenovou sílu a zastiňují jakýkoli předchozí cyklus, zatímco viditelnost tržeb je naprosto jasná díky zásobě zafixovaných dlouhodobých kontraktů. Utlumená reakce akcií podle nich odráží skutečnost, že většina investorů na Wall Street pravděpodobně už překonání odhadů očekávala.
Akcie Micron Akcie Micronu (MU) v předburzovní fázi obchodování klesají o 0,13 % na 1 063,7 USD.
Akcie Micron Technology (MU) před výsledky na 1 065,11 USD Ukazatel Ukazatel Kapitalizace (mld. USD) 1202,9 P/E 14,2 Vývoj za letošní rok (%) +273,2 Očekávané P/E 6,5 52týdenní minimum (USD) 165,5 Prům. cílová cena (USD) 1599 52týdenní maximum (USD) 1255 Dividendový výnos (%) 0,0 Zdroj: Micron Technology, Bloomberg
Michael Burry was already betting against Micron Technology (MU +0.00%). On Sept. 28, the investor famous for calling the housing crash told his newsletter subscribers that he'd traded that short position for put options expiring in June 2027, with strike prices in the $500 range.
With the memory chipmaker's stock at around $1,065 as I write, those puts only pay off at expiration if the shares lose about half their value in under nine months.
Two days after Burry's post, Micron reported the biggest quarter on record. Revenue grew 379% year over year to $54.2 billion. And management said it still can't tell when the shortage driving those numbers will end.
I think Micron's own construction schedule is the best guide to which of the two has the timing wrong.
Image source: Getty Images.
Burry's bet has an expiration dateBurry spelled out his thinking in a Substack post on Sept. 22, saying that he expects the memory shortage to end over the next two years as production catches up, with memory then going through another down cycle. He also flagged growing Chinese memory production.
With memory's long boom-and-bust history, it's a sensible thesis. High prices tend to bring in new supply.
The trade he picked, though, is narrower. Unlike a short position, a put option has a fixed expiration date. And in his Sept. 28 post, Burry wrote that he was moving his timelines up and wanted more leverage, mainly because he thinks the artificial intelligence bubble could pop sooner rather than later. In other words, he's betting the stock breaks long before the shortage is supposed to end.
Micron's outlook just got brighterShowing how much the shortage is still helping, Micron's revenue for its fiscal fourth quarter (a 14-week period ending Sept. 3, 2026, one week longer than normal) climbed 31% over the previous quarter. Its non-GAAP (adjusted) gross margin hit 87%, versus 46% a year earlier. For the fiscal first quarter, Micron expects revenue of around $61.5 billion -- another 13% sequential gain.
In June, CEO Sanjay Mehrotra said he expected industry supply to improve gradually in 2028.
"[W]e do not have line of sight to when supply and demand will return to balance," Mehrotra said in the company's prepared remarks for its Sept. 30 earnings call. He also said Micron now expects memory supply-demand conditions to be far tighter in calendar 2027 and 2028 than in 2026.
Sure, Burry does have one trend on his side. Micron's DRAM price rises slowed sharply, from the low-60s percentage range sequentially in fiscal Q3 to the high-teens range in fiscal Q4. And management expects a more moderate pace of price gains over the rest of fiscal 2027.
Still, prices are climbing, and a down cycle needs them to drop.
Micron also has a lot of its future revenue spoken for. Its remaining performance obligations (contracted revenue at minimum pricing under multi-year take-or-pay customer agreements) are around $150 billion -- more than its entire fiscal 2026 revenue of $133 billion.
When does new supply arrive?Burry's catch-up case does have Micron's own spending behind it.
Micron spent $27.4 billion on capital expenditures in fiscal 2026, and it expects around $25 billion in the first half of fiscal 2027 alone, with more in the second half. But new buildings take time. Micron's ID1 fab in Idaho should begin wafer output in mid-calendar 2027, and the company said a new fab's output becomes more meaningful only a few quarters after it starts. Most of the extra construction spending it just added is meant to speed up cleanroom space for late calendar 2028 and beyond.
Burry's puts expire around the time ID1's first wafers come out, while his two-year window ends closer to when that new cleanroom space should arrive. His thesis fits Micron's schedule far better than his puts do.
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If Micron is right, annualizing its fiscal Q1 guidance gives adjusted earnings per share of about $153, putting the stock at about 7 times earnings without counting any growth past that quarter.
If Burry is right about 2028, though, those earnings might drop sharply when the new supply arrives. And a low price-to-earnings ratio on peak profits can still turn out to be expensive.
Ultimately, I think Burry might well be right that memory turns down again. But betting the stock halves by next June is betting against Micron's order book in a stretch management expects to be even tighter than 2026. I wouldn't take that side of the trade. I also wouldn't assume the shortage outlasts the cleanroom space Micron itself is paying for.
Fiscal Q4 Revenue: Record $54.2 billion, up 31% sequentially and up 379% year over year; sixth consecutive quarterly revenue record.Full-Year Fiscal 2026 Revenu
Výrobce paměťových čipů Micron Technology zveřejnil výsledky za čtvrtý kvartál fiskálního roku 2026, který skončil 3. září 2026. Tržby meziročně vzrostly o 379 % a spolu s očištěným ziskem na akcii překonaly odhady analytiků i horní hranici vlastního výhledu společnosti. Výhled na první kvartál fiskálního roku 2027 je rovněž výrazně silnější, než trh očekával, očištěná hrubá marže by však měla mírně klesnout, a to především kvůli vyšším motivačním odměnám zaměstnanců.
Výsledky společnosti Micron Technology (MU) za 4Q FY 2026 4Q FY 2026 Konsensus 4Q 2026 4Q FY 2025 Tržby (mld. USD) 54,23 51,49 11,32 Čistý zisk (mld. USD) 37,70 -- 3,20 Očištěný zisk na akcii (EPS, USD/akcie) 33,42 31,83 3,03 Výsledky za 4Q FY 2026 Tržby společnosti meziročně vzrostly o 379 % na 54,23 mld. USD. Mezikvartálně vzrostly o 31 %. Překonaly tak tržní očekávání 51,49 mld. USD.
Tržby z pamětí technologie DRAM dosáhly 39,8 mld. USD (73 % celkových tržeb) a mezikvartálně vzrostly o 27 %. Objem dodávek (v bitech) vzrostl mezikvartálně o střední jednotky procent, průměrné prodejní ceny se zvýšily o vyšší desítky procent (high-teens). Tržby z pamětí technologie NAND dosáhly 14,1 mld. USD (26 % celkových tržeb) a mezikvartálně vzrostly o 42 %. Objem dodávek (v bitech) vzrostl mezikvartálně přibližně o 10 %, průměrné prodejní ceny přibližně o 30 %.
Všechny čtyři divize vykázaly rekordní tržby. Nejrychleji rostla divize jádrových datových center (CDBU), jejíž tržby mezikvartálně vzrostly o 56 % a hrubá marže dosáhla 90 %. Tržby z pamětí HBM, které se využívají v data centrech pro účely umělé inteligence, rostly rychleji než tržby celé společnosti. Tržby z SSD pro datová centra dosáhly téměř 10 mld. USD, což je více než desetinásobek oproti stejnému kvartálu loňského roku, a tvořily přes dvě třetiny celkových tržeb z technologie NAND.
Tržby Micronu ve 4Q FY 2026 dle divizí
(mld. USD) Divize Tržby Konsensus Meziroční změna Jádrová datová centra (CDBU) 18,00 11,34 +1 042 %
Cloudové paměti (CMBU) 16,28 15,14 +258 % Mobilní a klientské zařízení (MCBU) 13,11 12,95 +249 % Automotive a vestavěné systémy (AEBU) 6,82 4,73 +376 % Očištěný hrubý zisk dosáhl 47,20 mld. USD oproti 5,17 mld. USD ve 4Q FY 2025. Očištěná hrubá marže meziročně vzrostla o 41,3 p. b. na 87,0 % a překonala tak tržní odhad 86,2 %.
Očištěný provozní zisk vzrostl na 44,64 mld. USD z loňských 3,96 mld. USD, přičemž projekce trhu byly na úrovni 42,75 mld. USD. Očištěná provozní marže zaznamenala meziroční růst o 47,3 p. b. na 82,3 %, což bylo mírně pod očekáváním 82,8 %.
Očištěné provozní náklady vzrostly na 2,57 mld. USD z loňských 1,21 mld. USD a byl tak vyšší než odhad 1,68 mld. USD. Výdaje na výzkum a vývoj (R&D) meziročně vzrostly o 83 % na 1,91 mld. USD, přičemž očekávání bylo 1,38 mld. USD. Na vyšších nákladech se podepsalo rozhodnutí společnosti navýšit motivační odměny za fiskální rok 2026 všem zaměstnancům.
Provozní hotovostní tok meziročně vzrostl na 43,97 mld. USD z 5,73 mld. USD, přičemž odhad trhu činil 33,87 mld. USD. Čisté kapitálové výdaje činily 10,77 mld. USD a očištěný volný hotovostní tok (FCF) tak dosáhl 33,20 mld. USD.
Počet uzavřených strategických zákaznických smluv (SCA) vzrostl na 26 (oproti 16 v minulém kvartálu). Podle aktuálních odhadů společnosti budou představovat více než 35 % jejích tržeb do roku 2030. Tři čtvrtiny těchto očekávaných tržeb mají pevně stanovený cenový rámec, většinou s cenovými pásmy s minimální a maximální cenou, u zbývající čtvrtiny se cena pravidelně vyjednává podle tržních cen. Některé smlouvy již sahají do roku 2031 a finanční závazky zákazníků vzrostly na 32 mld. USD, přičemž naprostou většinu tvoří hotovostní zálohy.
Výsledky za fiskální rok 2026 Za celý fiskální rok 2026 vzrostly meziročně tržby o 256 % na 133,19 mld. USD. Tržby z pamětí DRAM zaznamenaly meziroční růst o 252 % na 100,7 mld. USD a tržby z NAND vzrostly meziročně o 274 % na 31,8 mld. USD. Čistý zisk dosáhl 84,97 mld. USD a očištěný zisk na akcii 75,52 USD oproti 8,29 USD v předchozím roce. Provozní hotovostní tok vzrostl na 89,68 mld. USD a očištěný volný peněžní tok dosáhl 62,31 mld. USD.
Výhled na 1Q FY 2027 Firma pro první kvartál fiskálního roku 2027 očekává:
Tržby v rozmezí 60 až 63 mld. USD. Trh projektoval pouze 56,77 mld. USD. Očištěný zisk na akcii ve výši 37,15 až 39,15 USD. Odhad trhu byl na úrovni 36,02 USD. Očištěnou hrubou marži přibližně 86,25 %. Trh projektoval 86,7 %. Očištěné provozní náklady přibližně 2,06 mld. USD. Trh odhadoval 1,83 mld. USD. Čisté kapitálové výdaje přibližně 11,5 mld. USD. Fiskální rok 2027 má být podle společnosti dalším rekordním rokem s mezikvartálním růstem tržeb v každém kvartále. První kvartál by měl představovat dno hrubé marže pro celý fiskální rok. Většina navýšení motivačních odměn za fiskální rok 2026, která se týká výroby, byla ve 4Q zaúčtována do zásob a do hrubé marže se promítne až při prodeji těchto zásob, tedy především v 1Q FY 2027. Ve zbytku fiskálního roku 2027 společnost očekává vyšší hrubé marže při mírnějším tempu růstu cen. Provozní náklady by měly ve fiskálním roce 2027 vzrůst přibližně o 2,5 mld. USD, zejména kvůli vyšším výdajům na výzkum a vývoj a vyšším motivačním odměnám. Kapitálové výdaje budou oproti dřívějším plánům vyšší, většina navýšení připadne na výstavbu nových čistých prostor.
Tržní prostředí Management očekává, že nerovnováha mezi nabídkou a poptávkou po pamětech bude v kalendářních letech 2027 a 2028 výrazně vyšší než v roce 2026. Také uvedl, že poptávka od posledních výsledků dále zesílila. Objem dodávek DRAM v celém odvětví by měl v kalendářním roce 2026 vzrůst o střední dvacítky procent a v letech 2027 a 2028 přibližně o nižší dvacítky procent. U NAND společnost očekává v roce 2026 růst o nižší dvacítky procent a v letech 2027 a 2028 přibližně o střední dvacítky procent.
U HBM pamětí má Micron uzavřené dohody na naprostou většinu své nabídky pro kalendářní rok 2027, a to s výrazným meziročním zvýšením cen. Společnost také spolupracuje s Nvidií na první zakázkové implementaci HBM4E v odvětví. Počet dodaných serverů by měl v kalendářních letech 2026 i 2027 růst o vyšší desítky procent (high-teens).
Komentář CEO „Micron dosáhl rekordních výsledků za fiskální rok 2026 a očekáváme ještě silnější fiskální rok 2027,“ uvedl generální ředitel Sanjay Mehrotra. „AI se mění v superinteligenci (SI) a paměti zvyšují tuto inteligenci i konkurenceschopnost platforem našich zákazníků. Navyšujeme investice do technologií, produktů a výroby, abychom společně se zákazníky posouvali SI kupředu, a naše strategické zákaznické smlouvy poskytují dodatečnou jistotu ohledně udržitelnosti finanční výkonnosti Micronu.“
Pohled analytiků Analytici z Morgan Stanley uvedli, že u Micronu mezikvartální zlepšování zpomalilo, ale síla byznysu je nadále jasně patrná. Zlepšování hrubé marže bude od této chvíle postupné, což se dá očekávat, když společnost překračuje hranici 85 % hrubé marže, a v krátkodobém horizontu působí určité negativní nákladové vlivy.
Analytici z JPMorgan poznamenali, že Micron vykázal přesvědčivé překonání odhadů a zvýšení výhledu, doprovázené výrazným navýšením pokrytí strategickými zákaznickými smlouvami (SCA). Výhled na následující kvartál je výrazně nad odhady Wall Street, a to díky cenám a podílu HBM v produktovém mixu.
Analytici z Vital Knowledge uvedli, že hlavní čísla zisku na akcii a tržeb za 4Q byla nad plánem a výhled na 1Q fiskálního roku je také lepší, ale očekávání jsou v celém tomto segmentu velmi vysoká, takže investoři mohou zprávu Micronu vnímat jako ne o moc lepší než v souladu s očekáváním. Komentář k nabídce a poptávce je podle analytiků pozitivní a objem nevyřízených zakázek roste, jak další zákazníci podepisují strategické zákaznické smlouvy, což je pozitivní z hlediska udržitelnosti zisku na akcii, ale zároveň to omezuje potenciál dalšího růstu zisků.
Analytici z Lynx Equity Strategies uvedli, že jde o pěkné překonání odhadů a zvýšení výhledu a hrubá marže se drží dobře. Poznamenávají, že investoři se obávali, že nedostatek nabídky v roce 2028 poleví, až budou spuštěny nové kapacity, ale prohlášení vedení naznačuje, že nárůst poptávky v roce 2028 převýší nárůst nabídky.
Analytici ze Zacks Investment Research poznamenali, že Micron rozdrtil očekávání Wall Street ve všech ukazatelích a kromě skvělého kvartálu nezklamal ani výhled Micronu na 1Q 2027, přičemž CEO Sanjay Mehrotra uvedl, že fiskální rok 2027 bude ještě silnější. Hrubé marže podle nich ukazují obrovskou cenovou sílu a zastiňují jakýkoli předchozí cyklus, zatímco viditelnost tržeb je naprosto jasná díky zásobě zafixovaných dlouhodobých kontraktů. Utlumená reakce akcií podle nich odráží skutečnost, že většina investorů na Wall Street pravděpodobně už překonání odhadů očekávala.
Akcie Micron Akcie Micronu (MU) v předburzovní fázi obchodování klesají o 0,13 % na 1 063,7 USD.
Akcie Micron Technology (MU) před výsledky na 1 065,11 USD Ukazatel Ukazatel Kapitalizace (mld. USD) 1202,9 P/E 14,2 Vývoj za letošní rok (%) +273,2 Očekávané P/E 6,5 52týdenní minimum (USD) 165,5 Prům. cílová cena (USD) 1599 52týdenní maximum (USD) 1255 Dividendový výnos (%) 0,0 Zdroj: Micron Technology, Bloomberg
Námi sledované indexy v asijsko-pacifickém regionu se obchodovaly smíšeně. Podle agentury Bloomberg zvýšené ceny ropy a výnosy dluhopisů nadále doléhají na tržní náladu. Dařilo se však technologickým titulům v regionu, a to v návaznosti na silná čísla výrobce paměťových čipů Micron Technology (podrobnosti připravujeme).
Nejvýraznější propad zaznamenaly australské akcie, které ztratily 2 %, zatímco trhy s vysokým podílem technologií včetně Japonska, Tchaj-wanu a Jižní Koreje, rostly. V Hongkongu a pevninské Číně byly trhy z důvodu svátku uzavřeny.
Exporty v Jižní Koreji v září meziročně vzrostly o 83,5 % při očekávání růstu o 62,5 %. Index nákupních manažerů PMI ve výrobě v této zemi dosáhl v září 53,9 b.
Kvartální průzkum Tankan v Japonsku u velkých podniků ve výrobě za 3Q dosáhl 24 b. při očekávání 25 b. Index nákupních manažerů PMI ve výrobě v zemi vycházejícího slunce dosáhl v září podle konečných dat 54,1 b.
Japonský Nikkei 225 +3,3 % na 68956,72 b.
Jihokorejský Kospi +1,95 % na 6971,35 b.
Australský S&P/ASX 200 -1,99 % na 8614,4 b.
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Evropské trhy zahájí obchodování v záporných číslech, když indexy evropských trhů indikují přibližně -0,5% pokles futures, na Wall Street se včera obchodovalo kladně, akciový trh povzbudil report deflátoru PCE, který byl reportován na 3,4 % pod tržním očekáváním 3,7 %, na dlouhém konci výnosové křivky však výnosy dluhopisů pokračovaly v růstu kvůli zvýšeným inflačním očekáváním a geopolitické tenzi s Íránem. Na blízkém východě pokračují jednání, ale zatím bez východiska, ropa Brent mírně odepsala pod hranicí 100 USD/barel, když lokální vršky byly v rozmezí 105-107 USD/b. Na rozdíl od US včerejší předběžný report zářijové harmonizované inflace v EU indikoval meziroční růst o 0,4procentního bodu na 3,3 %, načež vzrostly výnosy německých státních dluhopisů a DAX uzavřel u měsíčního minima poblíž 25200 b. Z pohledu podnikových zpráv včera reportoval Micron nad očekávání trhu, akcie ale uzavřely „jen“ o 0,8 % výše, technologické tituly asijsko-pacifického regionu korigovaly jinak nepříznivý vývoj, a to hlavně na trzích v Japonsku, Jižní Koreji a na Taiwanu. Kvůli svátkům se neobchodovalo v Číně a v Hongkongu. Pražská burza včera ztrácela, Komerční banka otevře v novém měsíci kousek od technických 1000 Kč, v ČR jsme dnes bez makro zpráv, vývoj obchodování čekáme na vlně zahraničního sentimentu.
Buy MU. Earnings show real pricing power (gross margin >86%), HBM3E fully sold out deep into next year, and >$100B take-or-pay contracts that create a pricing floor. Guidance (Q1 revenue ~$61.5B) confirms tight server memory supply persists, so the stock’s “good news but down” reaction looks like positioning, not fundamentals. Key risk: HBM supply loosens faster than expected (new capacity ramps or demand slows), breaking the sold-out/price-floor narrative and compressing margins.
Key Risk: HBM supply catches up or AI server demand slows, forcing pricing and margins down.
NVIDIA (NVDA)
Buy NVDA. MU’s HBM tightness and hyperscaler take-or-pay demand are second-order confirmation that AI GPU buildouts are still accelerating—HBM is a bottleneck that only matters if GPU shipments keep rising. If MU is booked out, NVDA’s data-center platform demand is likely being pulled forward, supporting continued earnings momentum and multiple expansion. Key risk: AI capex pauses (hyperscalers delay GPU orders), turning MU’s tightness into inventory build and weakening NVDA demand.
Key Risk: Hyperscalers cut AI GPU capex, reducing orders and breaking the AI buildout momentum.
Micron MU delivered a blockbuster Q4 earnings report on September 30, crushing Wall Street estimates and proving the artificial intelligence infrastructure (AI) boom remains in hyperdrive.
Driven by surging global demand for High-Bandwidth Memory (HBM), the semiconductor giant posted unprecedented top- and bottom-line performance, with data center sales up 11x.
Revenue came in at a record $54.23 billion for the quarter – up sharply from $11.32 billion in the same quarter last year, while GAAP net income also reached an astounding $37.7 billion or $32.87 a share.
Micron stock is currently trading at more than 3x its price at the start of this year.
Beyond raw headline figures, Micron demonstrated pricing power in fiscal Q4 previously unheard of in the traditionally cyclical memory market.
Non-GAAP gross margins surpassed management's aggressive target of 86%, demonstrating how strategic long-term customer agreements have insulated the firm from broader macro volatility.
HBM3E memory modules, which power next-generation graphic processing units for enterprise deep learning clusters, remain fully sold out deep into next year.
Operating cash flow swelled to $89.68 billion for fiscal 2026 – allowing Micron to simultaneously fund $27.37 billion in capital expenditures while sustaining robust liquidity reserves.
Crucially, the “14-week quarter” provided extra operational tailwinds, reinforcing MU’s transition from a commoditized chip maker into an irreplaceable AI infrastructure player.
MU shares fell after the earnings release despite management issuing exceptionally strong Q1 guidance, projecting revenue of $61.5 billion, plus or minus $1.5 billion, and GAAP diluted EPS of $37.84.
This outlook confirms that server memory tightness will persist, despite rising competition from Chinese mainstream DRAM producers.
Note that Micron showed material strength across its broader portfolio in the fourth quarter.
Data center storage demand surged – led by “high-capacity” enterprise SSDs (eSSDs) that complement high-performance AI training and inference server deployments.
High-density server DRAM modules (DDR5) and LPDDR5X for AI-enabled edge devices also saw accelerated enterprise adoption, expanding MU’s footprint past traditional accelerators.
DRAM revenue rose to $38.26 billion in Q4 (representing ~70.5% of total quarterly revenue).NAND revenue surged to $12.32 billion in Q4 (representing ~22.7% of total quarterly revenue).High-capacity eSSDs (specifically 30TB+ and 60TB class drives) crossed the $1.5 billion quarterly run rate mark.Micron confirmed over $100 billion in total cumulative long-term “take-or-pay” contract value locked in across top hyperscale cloud providers and AI GPU customers.
These binding contracts guarantee pricing floors and volume commitments, insulating Micron from standard cyclical price spot dips.
Following the post-earnings breakout, investors should approach Micron shares with a strategic balance of momentum participation and risk management.
With shares up over 200% year-to-date, chasing extended green candles risks exposure to short-term pullback volatility.
A prudent approach involves writing cash-secured puts below key technical support levels to establish entries on dips or holding core long equity while selling out-of-the-money covered calls to harvest elevated option premiums.
Given MU’s long-term order visibility and structural gross margin expansion, dollar-cost averaging on temporary macro consolidations allows long-term investors to participate in the multi-year AI memory super-cycle without overextending capital at local peaks.
Buy. Micron’s guidance and customer commitments confirm the memory shortage is tightening, not easing, and Samsung is a direct beneficiary across HBM, server DRAM, and NAND. The market is underpricing the 2027–2028 supply squeeze as AI spending broadens beyond hyperscalers, keeping pricing power intact. Key setup: earnings momentum + rising pre-commitments in the same supply chain.
Key Risk: US 10-year yields stay high and earnings fail to keep pace, forcing a valuation reset that overwhelms the shortage story.
SK Hynix (000660.KS)
Buy. SK Hynix is the cleanest way to own the AI memory shortage, and Micron’s data shows customers locking supply years ahead—already >75% of 2027 shipments committed. That supports sustained margins and reduces downside from near-term demand volatility. Second-order angle: if AI buyers lock supply early, Hynix’s production planning and pricing leverage improve versus peers, widening the gap even if some customers try to “de-spec” HBM per accelerator.
Key Risk: Customers successfully reduce total HBM per accelerator enough to cut overall HBM demand, breaking the assumption that total memory consumption keeps rising.
Samsung Electronics and SK Hynix recovered intraday on Thursday after opening lower, as Micron Technology’s record results reinforced the view that the global memory shortage is becoming more severe rather than easing.
Micron reported fiscal fourth-quarter revenue of $54.23 billion and guided for $61.5 billion next quarter, both ahead of expectations.
Management also said supply-demand conditions could tighten further in 2027 and 2028 as AI infrastructure consumes more memory.
But the Korean chip rebound comes with a warning. The US 10-year Treasury yield recently moved above 5.3%, its highest since 2002, raising the valuation hurdle for technology stocks.
Micron’s report was more than another earnings beat, as it showed customers trying to secure memory years in advance.
The company said customer financial commitments under its strategic agreements rose to $32 billion from $22 billion in June, while more than 75% of its fiscal 2027 shipment volume is already committed to customers.
Chief executive Sanjay Mehrotra said the supply-demand balance could become even tighter in fiscal 2027 and 2028.
That matters directly for Samsung and SK Hynix because all three companies sell into the same AI-driven memory shortage.
NH Investment & Securities analyst Ryu Young-ho told ChosunBiz that AI spending is broadening beyond hyperscalers towards corporations and governments.
He argued that inference workloads and AI agents are accelerating CPU demand, creating “excess demand for memory.”
Micron has given investors an early look at how profitable the environment could become for Korea’s memory leaders if customers lock in supply before delivery.
The biggest challenge is whether soaring memory costs eventually force AI-chip designers to use less HBM per accelerator.
Bank of America analyst Vivek Arya has called those “de-spec” concerns overstated, according to MarketWatch. He argues that total memory demand remains powerful enough to offset lower HBM content on individual products.
If Nvidia trims memory specifications, rivals such as AMD may differentiate by offering more capacity elsewhere.
Micron COO Manish Bhatia made a similar point after earnings.
Lower memory content per accelerator can allow customers to ship more accelerators, meaning fewer gigabytes on each chip do not automatically translate into weaker overall HBM demand.
The distinction matters for Samsung and SK Hynix, as the bullish case increasingly rests on total AI-system memory consumption across HBM, server DRAM and NAND rather than any single specification.
The bond market is the clearest threat to that optimism.
Kiwoom Securities analyst Han Ji-young told Seoul Economic Daily that the assumption markets must cope with high interest rates “has not changed”.
He said the key question is whether earnings can become strong enough to withstand those rates.
Foreign flows show that concern. Foreign investors sold a net 21.51 trillion won of KOSPI shares in September, extending their selling streak to five months. SK Hynix and Samsung Electronics accounted for 76.6% of that selling.
The 10-year Treasury yield recently moved above 5.3%, reaching its highest level since May 2002.
That creates an unusual battle for Korean investors. Earnings expectations are moving sharply higher while one of the market’s most important marginal buyers has been moving the other way.
SanDisk’s $1,800 Breakout Turns Memory Hardware Into a Profit StoryMicron Technology NASDAQ: MU executives said demand tied to artificial intelligence infrastructure is strengthening into 2027 and 2028, while industry supply remains constrained by cleanroom capacity, increasingly complex high-bandwidth memory products and diminishing returns from technology transitions.
During the company’s fiscal fourth-quarter analyst call, President and Chief Operating Officer Manish Bhatia said Micron has committed more than 75% of its planned shipments for fiscal 2027. That visibility has allowed the company to begin allocation discussions with customers for 2028, he said.
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3 Retail Stocks Getting Crushed and the Long-Dated Options Trade on Each One“We really do not have line of sight to when supply and demand balances,” Bhatia said, citing the combination of stronger demand and structural constraints on supply growth.
AI Demand Expands Beyond Accelerators Bhatia pointed to continued server-unit growth and the spread of agentic AI workloads as major demand drivers. He said agentic AI is creating a CPU-driven source of demand in addition to the memory needs associated with AI accelerators.
NVIDIA Just Named AI's Next Bottleneck—And These 3 Stocks Sit Right In ItAccording to Bhatia, agentic workloads require significant attachments of LP memory, DDR memory and solid-state drives. He said server units are growing in the high teens, while customers are currently seeking to maximize the amount of compute silicon they can ship with available memory supply.
That situation has created latent demand for additional memory, executives said. If more memory became available, customers could add more memory to AI systems and improve system performance.
Bhatia also said the company sees DRAM as the principal constraint on data-center expansion rather than logic or power. He cited the rapid adoption of enterprise and consumer agentic software as evidence of the demand environment.
HBM Remains a Key Growth Product Micron expects high-bandwidth memory, or HBM, shipments to grow faster than conventional DRAM through 2028. Bhatia said the product category will therefore represent a growing share of industry capacity.
The company said it significantly increased HBM pricing for calendar 2027, with the change intended to narrow the profitability gap with conventional DRAM. Micron did not provide an updated estimate for the HBM total addressable market, nor did it provide a specific HBM market-share target.
Bhatia said Micron expects its HBM share to remain around its broader DRAM market share, though he noted that the result may vary based on several factors. He said the company had reached its prior goal of bringing HBM share to its broader DRAM share about a year earlier.
Scott DeBoer, Micron’s President and Chief Technology and Products Officer, said the company has worked with NVIDIA for more than a year on HBM4E, referred to as NVHBM. He characterized it as the first major custom HBM product expected in the market and said the co-designed product could provide value beyond standard HBM4E.
DeBoer clarified that the HBM4E co-design uses a foundry process for both customized and JEDEC-specified products, rather than Micron’s in-house optimized base die approach used with HBM4. He said Micron seeks differentiation through power efficiency, speed performance, product margin and product quality.
Supply Agreements and Capacity Investments Micron said its supply-chain agreements, or SCAs, cover both DRAM and NAND. The company has discussed a goal of SCAs covering 35% of sales by 2030, though Bhatia said Micron was not breaking out the agreements by product category.
He said DRAM bit volume covered by the agreements is somewhat below approximately 35%, while NAND bit volume is somewhat above that level. The company has SCAs across all business units, including mobile and client markets, and said it signed 10 new customers during the quarter.
Most pricing frameworks in the agreements use floors and ceilings, Bhatia said, while approximately one-quarter of SCA revenue has pricing subject to periodic negotiations tied to market conditions. Newer agreements reflect higher current market pricing and Micron’s outlook for future tightness, he added.
Micron is increasing construction capital expenditures primarily to accelerate cleanroom availability beginning in late 2028 and beyond. Bhatia said these investments will not immediately translate into bit production, as fabs must still be equipped and qualified before meaningful shipments begin.
Chief Financial Officer Mark Murphy said most of the planned capital-expenditure increase is directed toward construction rather than equipment. Micron plans to equip cleanrooms and add production capacity based on demand trends, executives said.
Technology, China Exposure and Near-Term Modeling Items DeBoer said Micron’s technology lead over Chinese competitors is currently at least two DRAM nodes. He said Micron’s 1-gamma DRAM technology has become the majority of its bit output and is on track to become the largest node in company history. The company’s next-generation 1-delta node is under development, with a ramp targeted for the second half of next year.
Micron expects China exposure to fall into the single-digit percentage range in fiscal 2027, Bhatia said.
In mobile and client products, Micron reported sequential bit declines but revenue growth driven by higher pricing and favorable mix. Bhatia said premium PCs and flagship smartphones continue to show robust demand for higher-content, higher-performance memory, even as unit volumes decline.
For the fiscal first quarter, Murphy said Micron’s guidance assumes single-digit sequential bit growth and double-digit cost growth for both DRAM and NAND. He also said that, excluding incentive-compensation effects, the company expects its year-over-year research-and-development spending increase to exceed $1 billion in fiscal 2027 as it expands R&D activities.
About Micron Technology (NASDAQ:MU)Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, three-dimensional XPoint-related technologies, solid-state drives, and high-bandwidth memory products designed for demanding computing applications.
The company serves customers across the data center, artificial intelligence, networking, automotive, industrial, mobile, consumer electronics, and embedded markets.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Micron (MU - Free Report) came out with quarterly earnings of $33.42 per share, beating the Zacks Consensus Estimate of $31.61 per share. This compares to earnings of $3.03 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.73%. A quarter ago, it was expected that this chipmaker would post earnings of $21.39 per share when it actually produced earnings of $25.11, delivering a surprise of +17.39%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Micron, which belongs to the Zacks Computer - Integrated Systems industry, posted revenues of $54.23 billion for the quarter ended August 2026, surpassing the Zacks Consensus Estimate by 6.33%. This compares to year-ago revenues of $11.32 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Micron shares have added about 273.2% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for Micron?While Micron has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Micron was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $35.10 on $56.77 billion in revenues for the coming quarter and $158.79 on $250.71 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Integrated Systems is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Seagate (STX - Free Report) , is yet to report results for the quarter ended September 2026.
This electronic storage maker is expected to post quarterly earnings of $7.34 per share in its upcoming report, which represents a year-over-year change of +181.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Seagate's revenues are expected to be $4.08 billion, up 55.1% from the year-ago quarter.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
Total S&P 500 earnings in Q3 are currently expected to increase +24.1% from the same period last year on +11.6% higher revenues, with 14 of the 16 Zacks sectors expected to enjoy positive earnings growth and 6 sectors producing double-digit growth. This will be the most broad-based earnings growth performance in recent times. With Conglomerates (-35.2%) and Consumer Staples (-0.1%) as the only Zacks sectors expected to have lower Q3 earnings relative to the year-earlier period, the quarter is on track to produce an impressively broad-based growth performance. Q3 will also be the 8th straight quarter of double-digit earnings growth for the S&P 500 index.Sectors expected to enjoy double-digit earnings growth in Q3 are Aerospace (+159.7%), Energy (+111.8%), Tech (+42.1%), Basic Materials (+29.7%), Transportation (+14.4%), and Industrial Products (+13.1%).Micron ((MU - Free Report) ) and Nvidia ((NVDA - Free Report) ) continue to be material contributors to the Tech sector’s growth picture. Excluding Nvidia, Micron, and Alphabet ((GOOGL - Free Report) ), which enjoyed an outsized gain in the preceding period, Q3 earnings for the rest of the Tech sector would be +20.6% (vs. +42.1% otherwise).The Earnings Big Picture
The chart below shows S&P 500 expectations for 2026 Q3 in terms of what was achieved in the preceding four periods and what is currently expected for the following three quarters.
Image Source: Zacks Investment Research
The chart below shows how Q3 earnings growth expectations have evolved lately.
Image Source: Zacks Investment Research
Since the start of Q3, the Energy sector has enjoyed the most pronounced upgrade to its earnings outlook, reflecting elevated oil prices as a result of the Persian Gulf situation. Other sectors enjoying positive estimate revisions since the start of Q3 include Aerospace, Industrial Products, Tech, Autos, Transportation, Finance, and Utilities. It is significant to note that the aggregate revisions trend would still be positive if we excluded the positive revisions to the Energy or Tech sector.
The Tech sector remains a major contributor to aggregate earnings growth, with Q3 earnings growth dropping to +14.5% once the sector’s contribution is excluded from the index. The semiconductor industry within the Tech sector has enjoyed a particularly robust demand environment lately, and that trend remains in place in Q3 as well.
The Zacks Semiconductor industry at the mezzanine level is expected to enjoy +85.5% earnings growth in 2026 Q3 on +62.8% revenue growth, following the industry’s +110.1% and +96% earnings growth in each of the preceding two periods.
The Tech sector’s +42.1% earnings growth in Q3 drops to +29.6% once the semiconductor’s contribution is excluded. If we exclude Nvidia, Micron, and Alphabet, Q3 earnings growth for the rest of the Zacks Tech sector drops to +20.6%, as the chart below shows.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
The favorable revisions trend noted earlier in the context of Q3 estimates is also at play with estimates for the last quarter of the year, with mostly the same sectors enjoying positive revisions.
Micron (MU +0.00%) just reported its Q4 numbers, and they look quite good. The memory chipmaker more than quadrupled its revenue year over year, a pretty incredible number, even for a chipmaker essential to the artificial intelligence (AI) boom.
Can Micron keep up this kind of pace? And what should investors expect from the company moving forward?
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Micron beat expectations, and its outlook looks even betterThe company managed to exceed Wall Street's expectations on their top and bottom lines. The street expected earnings of $31.61 per share on 51.07 billion, the company delivered earnings of $33.42 per share on sales of $54.23 billion.
It beat on forward guidance too, setting a target for its current quarter of $38.15 per share on $61.5 billion in sales. Wall Street saw $35.40 per share on $57 billion in sales.
The success of DRAM and HBMThe company's success is being driven primarily by one category: DRAM, or dynamic random-access memory. DRAM is bundled into specialized high-bandwidth memory, HBM, which has become like gold in the AI industry. DRAM sales jumped 343% year over year and now make up 73% of total sales for Micron.
Micron's CEO, Sanjay Mehrotra, told investors that the company is doubling down on its golden goose, saying on its earnings call that his company has a "strong roadmap for future HBM products," including what he called the industry's "first custom HBM implementation" with the chipmaking giant, Nvidia.
Why AI memory has become so lucrativeMemory holds the data an AI processor uses to do its job. And to do it well, it needs to access a lot of that memory extremely fast. That's where HBM comes in -- by stacking memory chips and placing them right alongside the processor, it keeps the AI chip operating at peak capacity.
As a general rule, the more memory AI models have access to, and the more readily they can access it, the more powerful and capable the model. And right now, supply is sorely lacking. There just isn't enough HBM to meet that demand, and given that there are only three companies that can produce it at scale, Micron has enjoyed enormous pricing power.
The good times should continue -- but for how long?So the question is, will this continue? In the short term, absolutely. It takes a long time to bring new production capacity online, and so long as demand continues, it will be a long time before supply catches up.
Hendi Susanto from Gabelli Funds told CNBC that "at this point, [he has] not heard any negative data points pointing to the memory cycle reversing toward a decline anytime soon for the foreseeable future." It looks like the good times will indeed continue to roll.
However, long-term investors may have more cause for concern. While this is dynamic doesn't look like it will shift anytime soon. On a longer horizon, Micron's success could come back to bite it as its customers look for ways to optimize and reduce the need for physical memory.
And the memory chip market has always operated in a sort of boom or bust fashion. I think there is a very good chance that within a few years, prices will come back to earth.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
For the quarter ended August 2026, Micron (MU - Free Report) reported revenue of $54.23 billion, up 379.3% over the same period last year. EPS came in at $33.42, compared to $3.03 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $51 billion, representing a surprise of +6.33%. The company delivered an EPS surprise of +5.73%, with the consensus EPS estimate being $31.61.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Micron performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue by Technology- DRAM: $39.77 billion compared to the $38.42 billion average estimate based on five analysts. The reported number represents a change of +342.7% year over year.Revenue by Technology- Other (primarily NOR): $356 million versus $168.9 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +350.6% change.Revenue by Technology- NAND: $14.1 billion versus $12.44 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +526.2% change.View all Key Company Metrics for Micron here>>>
Shares of Micron have returned +14.1% over the past month versus the Zacks S&P 500 composite's -0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
SanDisk’s $1,800 Breakout Turns Memory Hardware Into a Profit StoryMicron Technology NASDAQ: MU reported record fiscal fourth-quarter and full-year results, with revenue, gross margin and earnings per share exceeding the high end of its guidance. Management said it expects fiscal 2027 to be another record year as artificial intelligence-related demand tightens memory and storage supply conditions.
For fiscal 2026, Micron reported revenue of $133.2 billion, up 256% from the prior year, while non-GAAP gross margin rose to 81.1%. Non-GAAP earnings per share increased 811% year over year to $75.52, according to CFO Mark Murphy.
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3 Retail Stocks Getting Crushed and the Long-Dated Options Trade on Each OneFiscal fourth-quarter revenue reached $54.2 billion, up 31% sequentially and 379% year over year, marking the company’s sixth consecutive quarterly revenue record. Fourth-quarter non-GAAP diluted EPS was $33.42, up 33% from the prior quarter, while gross margin was 87%, up 210 basis points sequentially.
DRAM and NAND Results Reach Records Micron’s fiscal fourth-quarter DRAM revenue was $39.8 billion, representing 73% of company revenue and rising 27% sequentially. DRAM bit shipments increased in the mid-single-digit percentage range sequentially, while pricing rose in the high-teens percentage range amid tight industry supply, Murphy said.
NVIDIA Just Named AI's Next Bottleneck—And These 3 Stocks Sit Right In ItNAND revenue totaled $14.1 billion, or 26% of revenue, increasing 42% sequentially. NAND bit shipments rose about 10%, while prices increased approximately 30% sequentially.
The company’s business units each posted record revenue. Core Data Center Business Unit revenue was $18 billion, up 56% sequentially, while Cloud Memory Business Unit revenue was $16.3 billion, up 18%. Mobile and Client Business Unit revenue totaled $13.1 billion, and Automotive and Embedded Business Unit revenue reached $6.8 billion.
CEO Sanjay Mehrotra said data center SSD revenue was nearly $10 billion during the fourth quarter, more than 10 times the year-ago level and more than two-thirds of Micron’s total NAND revenue. The company said it remains on track for a fifth consecutive year of record market share in data center SSDs during calendar 2026.
AI Demand Drives Supply Outlook Mehrotra said industry demand had strengthened since Micron’s prior earnings call, and the company expects memory and storage supply-demand conditions to be “much tighter” in fiscal 2027 and 2028 than in fiscal 2026.
For calendar 2027 and 2028, Micron expects industry NAND bit shipments to grow in the mid-20% range and DRAM bit shipments to rise in the low-20% range. The company expects both markets to remain supply constrained. It also expects HBM bit shipments to grow faster than conventional DRAM through calendar 2028.
Micron expects server unit growth in the high-teens percentage range in both calendar 2026 and 2027. While management said memory-content growth in servers has moderated from earlier expectations because of tight supply, it said larger AI models, longer context lengths and increased concurrency continue to support demand for memory and storage.
Mehrotra said Micron has completed agreements for the vast majority of its calendar 2027 HBM bit supply, with significant year-over-year price increases. He said those increases are narrowing the gross-margin gap between HBM and conventional DRAM.
The company also said it is working with NVIDIA on what Mehrotra described as the industry’s first custom HBM4E implementation, NV-HBM, intended for next-generation GPUs and NVLink Fusion platforms.
Customer Agreements and Capacity Plans Micron has signed 26 multi-year strategic customer agreements, or SCAs, with take-or-pay volume commitments. Management estimates the agreements represent more than 35% of the company’s revenue through 2030, with three-quarters of that expected revenue subject to defined pricing frameworks.
Murphy said remaining performance obligations associated with agreements that have determined pricing frameworks totaled approximately $150 billion. Customer financial commitments under the signed agreements and extensions have increased to $32 billion, mostly in the form of cash deposits.
During the question-and-answer session, Mehrotra said Micron could ultimately have SCAs covering roughly 50% of revenue through 2030, though the figure could vary with revenue from the rest of its business. He added that more than 75% of the company’s 2027 output was already committed across SCA and non-SCA customers.
Micron plans to increase capital expenditures in fiscal 2027 versus prior plans, primarily to accelerate construction of clean-room space for late calendar 2028 and beyond. Murphy said first-half fiscal 2027 capital expenditures are expected to total about $25 billion, including approximately $11.5 billion in the fiscal first quarter, with second-half spending expected to be higher.
The company expects initial wafer output from its Idaho ID1 fab in mid-calendar 2027, from ID2 in late calendar 2028 and from its first New York fab in calendar 2030. It also expects initial output from a Japan DRAM expansion in late calendar 2028, while Singapore’s new NAND facility is expected to begin output in the second half of calendar 2028.
Outlook and Capital Returns For fiscal first-quarter 2027, Micron forecast revenue of $61.5 billion, plus or minus $1.5 billion, and non-GAAP EPS of $38.15, plus or minus $1. Gross margin is expected to be about 86.25%, and operating expenses are projected at approximately $2.06 billion.
Murphy said fiscal first-quarter gross margin is expected to be the low point for fiscal 2027. The outlook reflects approximately $1 billion of higher costs, including the effect of increased fiscal 2026 incentive compensation absorbed into inventory, startup costs and other expenses. The company expects gross margins to improve after the first quarter as pricing continues to rise at a more moderate pace.
Micron generated $44 billion in operating cash flow and $33.2 billion in free cash flow during the fourth quarter. It ended the period with $73.5 billion in cash and investments, $5.2 billion in debt and net cash of $68.3 billion. Murphy said the company expects to reach its target cash level by the end of the fiscal first quarter and intends to increase capital returns beginning Dec. 9, with excess cash primarily expected to be returned through share repurchases over time.
About Micron Technology (NASDAQ:MU)Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, three-dimensional XPoint-related technologies, solid-state drives, and high-bandwidth memory products designed for demanding computing applications.
The company serves customers across the data center, artificial intelligence, networking, automotive, industrial, mobile, consumer electronics, and embedded markets.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Headline PCE slowed to 3.4% in August from 3.7%. Core printed 3.0% against a 3.3% forecast. Pretty good report. October hike odds slid toward the mid-30% area on it, and Treasuries sold off anyway.
Only the Nasdaq Composite Index managed to finish higher in the regular session. The S&P 500 Index slipped 0.3% while the Dow shed more than 440 points, a 0.9% drop. Without a bond rally behind it, the better inflation data never spread much past tech.
Neel Kashkari made it worse after the close. Inflation remains too high, the Minneapolis Fed President said, and August PCE didn’t change the story much for him. He also pointed to resilient growth and consumer spending. Not what the bulls wanted to hear after the bell.
The Dow Paid for September’s Rate Pain Rough month for the Dow. It lost 4.3% in September while the S&P 500 Index gave up 0.5% and the Nasdaq Composite Index picked up 1.9%. Stretch it out to the third quarter and the S&P 500 and Nasdaq were each up about 2%, with the Dow down 2.7%.
Yields and oil made the broad market a tough hold all month. The AI leaders kept enough money in tech to hold the Nasdaq up. Micron gives that same crowd a shot at starting October with a bid.
What to Watch Initial jobless claims hit Thursday morning, with Nike reporting after the close. Friday’s Non-Farm Payrolls report is the bigger one. October odds already came down on PCE. December is still live after Kashkari, and claims gets the first crack at it.
The main trend is up on both daily swing charts. Micron’s guidance handed Nasdaq-100 buyers their catalyst. The futures pushed into the retracement zone after the report and were trading inside it at 22:54 GMT. Buyers still have to get through 30,812.75.
December E-mini S&P 500 Index futures are holding just above the 50-day moving average in the overnight session, with the minor trend still down. The 50-day moving average at 7,732.47 is likely to help set the early tone Thursday.
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By Thomas Richmond · Updated Sep 30, 5:00pm ET · Published Sep 30, 2:00pm ET
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That wraps up our initial coverage of Micron’s Q4 results. Thank you for stopping by!
Micron's one red flag in an otherwise record quarter is that fiscal Q1 gross margin was guided to only 86.25%, which is slightly below the 87.0% gross margin delivered for Q4. This is the first hint that pricing gains may start slowing down even as revenue climbs to $61.5 billion.
36Board activity / 100Bullish lean · 67
51 qualified mentions · past 7 days
Retail called this one right: the bullish lean we flagged at 3:10 pm held through results that topped expectations on both lines and a fiscal Q1 revenue guide of $61.5 billion. Board activity still sits well below the levels a trillion-dollar memory maker's record quarter might suggest.
Board activity — past 7 days
r/wallstreetbets Anthropic Files for IPO 4.2K upvotes · 1.8K comments
Revenue$54.23B+379%Gross profit$47.05B+831%Operating income$43.75B+1066%Net income$37.70B+1078%Operating cash flow$43.97B+667%Free cash flow$33.20B+46010%Capex$11.11B+96.4%Cash$38.36B+298% SegmentsCloud Memory$16.28BCore Data Center$18.00BMobile and Client$13.11BAutomotive and Embedded$6.82B Data center is now the whole story: Core Data Center at $18.0B plus Cloud Memory at $16.28B account for roughly two-thirds of the $54.23B quarter, with Automotive and Embedded at $6.82B the smallest piece. That mix is why operating income rose 1,065.5% and why the $61.5B guide rests on AI customers staying committed.
EPS
$33.42
est $31.35 +6.6%
Revenue
$54.23B
est $50.97B +6.4%
AI memory pricing power is still compounding: Micron beat on both lines and guided fiscal Q1 revenue to $61.5 billion, well above the quarter it just reported. Management says fiscal 2027 will get stronger from here.
$18.62BNet cash
Cash $25.00B · Debt $6.38B · Equity $100.72B · Current ratio 3.42×
Micron flipped from a $7.7B net debt position in Q4 2024 to $18.6B in net cash by Q2 2026, with total debt cut to $6.4B and equity more than doubling to $100.7B. That gives management room to fund HBM capacity expansion out of cash flow, so any capex hike on tonight's call lands as a growth choice rather than a balance sheet strain.
Net cash by quarter
Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027. AI is becoming Super Intelligence (SI), and memory enhances this intelligence and the competitiveness of our customers' platforms. We are increasing our investments in technology, products and manufacturing to help drive SI forward with our customers, and our Strategic Customer Agreements provide added confidence in the durability of Micron's financial performance. Micron CEO Mehrotra is guiding for fiscal 2027 to top a record fiscal 2026, and he's backing it with higher capital spending on memory technology and manufacturing. The multi-year Strategic Customer Agreements lock in memory pricing power beyond the cycle.
Micron’s operating cash flow reached $43.97 billion, crushing the $34.47 billion estimate by nearly $9.5 billion.
The AI data center boom is showing up across the business. Cloud Memory generated $16.28 billion in revenue while Core Data Center contributed another $18.00 billion, meaning the two businesses combined for more than $34 billion in quarterly sales.
With Micron now forecasting $61.5 billion in Q1 revenue, well above the $57.02 billion consensus, management expects strength to continue into fiscal 2027.
Micron just reported earnings, with shares initially flat following the report. Here are the key numbers:
Revenue: $54.23 billion vs. $51.07 billion expected Adjusted EPS: $33.42 vs. $31.61 expected Adjusted Gross Margin: 87.0% vs. 86.1% expected Guidance:
Revenue: $61.5 billion ± $1.5 billion vs. $57.02 billion expected Adjusted EPS: $38.15 ± $1.00 vs. $35.40 expected Adjusted gross margin: ~86.25% vs. 86.4% expected Quick Read:
Micron delivered a clean Q4 beat, with revenue, EPS, and the closely watched 87% gross margin all coming in ahead of expectations. Q1 revenue and EPS guidance also crushed estimates, although the 86.25% gross margin outlook came in slightly below the 86.4% consensus.
$1,069.78+0.4%Target $1,520.76 · +42.2%
52-wk low $179.4352-wk high $1,254.81
23.8×
6.8×
0.1×
13.3×
17.8×
12.3×
Market cap $1.20T · Revenue +345.7% YoY
9 Strong buy35 Buy4 Hold
A 6.83 forward P/E against 345.7% revenue growth is what happens when earnings estimates race ahead of a stock that already ran from $179.43 to a $1,254.81 high. Shares sit near $1,070 into tonight's report, with the consensus target of $1,520.76 implying roughly 42% more upside and 44 of 48 analysts at buy or better.
84.6%+46.9pp YoY
80.4%+57.1pp YoY
68.1%+47.8pp YoY
Gross margin has climbed from 35.3% in Q3 2024 to 84.6% in Q2 2026, which is why tonight's roughly 86% gross margin target leaves almost no room for error. Operating margin at 80.4% means nearly every incremental pricing dollar is falling to the bottom line, so any moderation in DRAM pricing shows up in margin before it shows up in revenue.
Operating margin by quarter
$16Bacross 19 tracked filers
3 added · 10 trimmed · 1 new · 1 exited
Situational Awareness$5.6B—Coatue Management LLC$3.6B+18%Marshall Wace LLP$1.6B—Appaloosa LP$1.1B-0.4%D. E. Shaw & Co Inc$887M-0.8%Atreides Management$821M—Two Sigma Investments LLC$618M-0.8%Millennium Management LLC$597M-0.7% + 12 more tracked holders
As of Jun 30, 2026 quarter end · 13F disclosures lag ~45 days — long positions only, tracked filers only.
Across the 19 filers we track, funds that were trimming outnumbered buyers 10 to 3 in the quarter ended June 30, the last disclosure available and roughly 45 days old by the time it landed. Coatue Management, a heavily tech-focused fund, went the other way, adding nearly 18% to a position now worth about $3.6 billion.
This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. Simply stay on this page, and new updates will appear below automatically.
We expect Micron Technology to release Q4 earnings shortly after 4:00 p.m. ET.
36Board activity / 100Bullish lean · 67
51 qualified mentions · past 7 days
Retail is leaning bullish into tonight's report, with 51 qualified mentions over the past week and sentiment firmly on the long side. Notably, the loudest thread driving r/wallstreetbets right now is Anthropic's IPO filing, so the boards are treating the memory trade as an AI derivative. Micron's gross margin number tonight against an 86% target will likely drive the market's reaction.
Board activity — past 7 days
r/wallstreetbets Anthropic Files for IPO 4.2K upvotes · 1.8K comments
Support & resistance · chart through Wed, Sep 30 R2$1108.72+3.6%R1$1089.29+1.7%Now$1070.59S1$918.88-14.2%S2$893.96-16.5% $951.69+12.5% above
$673.17+59.0% above
$154.65 – $1255.00
Micron heads into tonight's Q4 report at $1,070.59, wedged just under resistance at $1,089.29 with $1,108.72 stacked right behind it. Clearing that pair is what a beat has to accomplish. Otherwise, the air pocket down to support at $918.88 leads to the downside conversation, and that still sits well above the 50-day at $951.69 and miles over the 200-day at $673.17.
Put/call 0.65Balanced
CallsPuts
105.9%
Fri, Oct 2chain as of Tue, Sep 29
A 0.65 put/call ratio into tonight's earnings says traders are bullish and leaning toward calls, with call open interest stacked at the 1,075 strike above the 1,070 money. That shows the market is confident in another beat, but that one-sided optimism also leaves the stock exposed if Micron's gross margin results disappoint. Either way, 105.9% at-the-money implied volatility on Friday's expiration shows how violent the reaction is expected to be.
Open interest near the money · puts / calls $1062.579 / 391$1065251 / 699$1067.551 / 214$10701.1k / 1.1k$1072.549 / 211$1075402 / 1.1k
$25.11vs $20.28 est +23.8%
$41.46Bvs $35.25B est +17.6%
Last quarter, memory shipped out the door faster than Micron could guide for, and both the top and bottom lines blew past what analysts had anticipated. That sets a high bar for tonight, because the fiscal Q4 guide management gave already sits below consensus revenue, leaving margin as the swing factor.
next print Wed, Sep 30
Wed, Sep 30 Earnings call · after close
Analysts have pressed Micron on Supply Continuity Agreements and long-term deals on all four of the last calls, and that thread is the one most likely to move the stock after tonight's report. With HBM share and margin sustainability also asked every quarter, how much 2027 supply is already locked in at fixed pricing will tell investors whether the gross margin story survives the moderation in price increases management has already flagged.
Analyst hot topics · last 4 calls Q4 25Q1 26Q2 26Q3 26
HBM roadmap and market shareGross margin expansion and sustainabilitySupply Continuity Agreements and LTAsCapEx and manufacturing capacityEnterprise SSD and NAND mix
Wed, Sep 30After close
$31.35
$50.97B
Micron has seen 8 straight beats, the last 4 by double-digit percentages and has set a high bar for this trillion-dollar memory maker tonight. Guidance already came in below where the Street sits, so the November quarter outlook and pricing commentary carry more weight than the quarter itself.
What to watch
Whether the roughly 86% gross margin target we flagged this morning holds into fiscal Q1HBM capacity sold-out commentary and 2027 pricing agreementsDRAM versus NAND pricing trajectory as management warns of moderationCapex plans and any China export-control exposure EPS surprise vs consensus Beat 8 of last 8 Q4 2024+3.5%Q1 2025+1.1%Q2 2025+21.9%Q3 2025+31.7%Q4 2025+12.6%Q1 2026+21.3%Q2 2026+31.0%Q3 2026+23.8% Earnings-day stock move · last 3 reports Q4 2025+0.3%Q1 2026+10.2%Q2 2026-3.8%
Will Micron (MU) beat quarterly earnings?
96%Yes-0.5pp this week
Polymarket · $6k traded · resolves Wed, Sep 30
Prediction markets show near-certain odds of an EPS beat tonight, so expectations for Micron are heavily skewed to the upside. With expectations that lopsided, the reaction hinges on the gross margin Micron reports tonight.
Yes probability
Micron heads into tonight’s Q4 earnings with expectations extremely high. The company guided fiscal Q4 revenue to $50.0 billion +/- $1.0 billion, compared with a consensus estimate of $50.97 billion.
Management has already acknowledged there may be some moderation in price increases, putting Micron’s roughly 86% gross margin target squarely in focus, even ahead of revenue.
Management has argued that long-term supply agreements and tight memory capacity can make earnings more durable than in previous boom-and-bust cycles, with CEO Sanjay Mehrotra saying, “We see 2027 overall tight.”
Investors will be looking for new contract details and strong fiscal Q1 guidance to reinforce that argument. Expectations leave little room for disappointment: Micron shares fell 19.61% in the week following its last earnings beat.
This article is updated throughout the trading day. Check back for more.
Full CoverageThe story so far
Micron Technology (NASDAQ:MU | MU Price Prediction) is expected to report fiscal Q4 2026 results at 4:00 PM ET after the market closes today and will hold its earnings call at 4:30 PM ET. The $1.21 trillion company will give the market updates on whether its AI-driven memory upcycle can last.
Record Margins Meet a Skeptical Post-Earnings Pattern Last quarter, revenue reached $41.46 billion, up 345.7% from a year earlier. Non-GAAP EPS came in at $25.11, beating the $20.28 consensus. Non-GAAP gross margin hit a record 84.9%, and free cash flow reached a record $18.3 billion.
The stock rose 15.74% on earnings day last quarter, but it retraced 19.61% over the following week. Shares now trade at $1,073.10, and are up about 15.03% over the past month.
Much of last quarter’s Q3 earnings call focused on 16 Strategic Customer Agreements (SCAs). These are take-or-pay contracts, and most run through calendar 2030. CEO Sanjay Mehrotra said they “will significantly enhance the durability and predictability of Micron’s strong financial performance.”
Consensus Estimates Point to Slower Sequential Growth Metric Q4 FY2026 Estimate YoY Change FY2026 Estimate FY2027 Estimate Revenue $50.97B +350.3% $129.86B $245.57B EPS (Normalized) $31.3542 +934.8% $73.4591 $156.5298 The revenue consensus calls for 23.0% sequential growth, well below the 74% sequential jump in fiscal Q3. The Q4 EPS estimate has risen from $24.1844 90 days ago. However, over the past 30 days, it saw two downward revisions and none upwards. FY2027 revenue estimates call for 89.1% growth, so fiscal Q1 2027 guidance will show whether that path holds.
What I’m Watching Tonight: Pricing, SCA Revenue and HBM4 Here are four of the top points I’ll be watching in Micron’s Q4 earnings tonight:
Margin math. CFO Mark Murphy warned that “incremental price yields less in gross margin expansion.” The question is whether margins hold near 86% as price increases slow. SCA conversion. RPO (remaining performance obligations, or contracted revenue not yet recognized) was over $5 billion at the end of fiscal Q3. Including agreements signed after the quarter, it was about $100 billion. The focus should be on new deals toward management’s goal of half or more of revenue under SCAs, and on the roughly $18 billion in cash deposits. HBM4 performance. Micron has shipped over $1 billion in HBM4 revenue, and the 12-high ramp is tracking twice as fast as HBM3E. The key questions now are how much depends on the lead customer and how HBM4E is progressing toward calendar 2027 volume production. Capex and returns. Management guided fiscal Q4 capex to around $10 billion and fiscal 2026 capex to about $27 billion. It plans to increase capital returns starting December 9, 2026. Earnings History Shows Beats Without Follow-Through Quarter EPS Surprise Day-Of Move 1-Day Move 7-Day Move 30-Day Move Q3 FY2026 +23.79% +15.74% -6.69% -19.61% -32.39% Q2 FY2026 +31.04% -3.78% -4.81% -19.99% +1.15% Q1 FY2026 +21.32% +10.21% +6.99% +14.58% +59.96% Q4 FY2025 +12.64% -2.82% -3.02% +12.64% +35.44% On average, shares swung -3.1% in the week after earnings over the past year.
Contact [email protected] for any questions or corrections.
Thomas Richmond
Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 500 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
Outside of work, Thomas enjoys weight lifting and soccer.
Characteristics and Risks of Standardized Options: https://bit.ly/2v9tH6D. "It's a little worrisome" heading into Micron (MU) earnings, says Kevin Hincks, who points to deceleration and contracting pricing power as concerns.
BOISE, Idaho, Sept. 30, 2026 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its fourth quarter and full year of fiscal 2026, which ended September 3, 2026.
Fiscal Q4 2026 Highlights
Revenue of $54.23 billion versus $41.46 billion for the prior quarter and $11.32 billion for the same period last yearGAAP net income of $37.70 billion, or $32.87 per diluted shareNon-GAAP net income of $38.40 billion, or $33.42 per diluted shareOperating cash flow of $43.97 billion versus $25.39 billion for the prior quarter and $5.73 billion for the same period last year Fiscal 2026 Highlights
Revenue of $133.19 billion versus $37.38 billion for the prior yearGAAP net income of $84.97 billion, or $74.33 per diluted shareNon-GAAP net income of $86.76 billion, or $75.52 per diluted shareOperating cash flow of $89.68 billion versus $17.53 billion for the prior year “Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027,” said Sanjay Mehrotra, Chairman and CEO of Micron Technology. “AI is becoming Super Intelligence (SI), and memory enhances this intelligence and the competitiveness of our customers’ platforms. We are increasing our investments in technology, products and manufacturing to help drive SI forward with our customers, and our Strategic Customer Agreements provide added confidence in the durability of Micron’s financial performance.”
Quarterly Financial Results(in millions, except per share amounts)
GAAP(1) Non-GAAP(2)FQ4-26FQ3-26FQ4-25 FQ4-26FQ3-26FQ4-25 Revenue$54,229 $41,456 $11,315 $54,229 $41,456 $11,315 Gross margin 47,047 35,056 5,054 47,204 35,199 5,169 Percent of revenue 86.8% 84.6% 44.7% 87.0% 84.9% 45.7%Operating expenses 3,296 1,738 1,400 2,568 1,518 1,214 Operating income 43,751 33,318 3,654 44,636 33,681 3,955 Percent of revenue 80.7% 80.4% 32.3% 82.3% 81.2% 35.0%Net income 37,701 28,243 3,201 38,398 28,857 3,469 Diluted earnings per share 32.87 24.67 2.83 33.42 25.11 3.03 Annual Financial Results(in millions, except per share amounts)
GAAP(1) Non-GAAP(2)FY-26FY-25 FY-26FY-25 Revenue$133,188 $37,378 $133,188 $37,378 Gross margin 107,504 14,873 108,032 15,286 Percent of revenue 80.7% 39.8% 81.1% 40.9%Operating expenses 8,164 5,103 6,841 4,440 Operating income 99,340 9,770 101,191 10,846 Percent of revenue 74.6% 26.1% 76.0% 29.0%Net income 84,969 8,539 86,758 9,470 Diluted earnings per share 74.33 7.59 75.52 8.29
Investments in capital expenditures, net(2) were $10.77 billion for the fourth quarter of 2026 and $27.37 billion for the full year of 2026. Adjusted free cash flow(2) was $33.20 billion for the fourth quarter of 2026 and $62.31 billion for the full year of 2026. Micron ended the year with cash, marketable investments, and restricted cash of $73.48 billion. On September 30, 2026, Micron’s Board of Directors declared a quarterly dividend of $0.15 per share, payable in cash on October 29, 2026, to shareholders of record as of the close of business on October 14, 2026.
Quarterly Business Unit Financial Results FQ4-26FQ3-26FQ4-25 Cloud Memory Business Unit Revenue$16,283 $13,769 $4,543 Gross margin 83% 83% 59%Operating margin 76% 78% 48% Core Data Center Business Unit Revenue$18,002 $11,524 $1,577 Gross margin 90% 87% 41%Operating margin 85% 83% 25% Mobile and Client Business Unit Revenue$13,114 $11,521 $3,760 Gross margin 90% 87% 36%Operating margin 88% 86% 29% Automotive and Embedded Business Unit Revenue$6,824 $4,634 $1,434 Gross margin 84% 79% 31%Operating margin 79% 75% 20%
Business Outlook
The following table presents Micron’s guidance for the first quarter of 2027:
FQ1-27GAAP(1) OutlookNon-GAAP(2) Outlook Revenue$61.5 billion ± $1.5 billion$61.5 billion ± $1.5 billionGross marginApproximately 85.95%Approximately 86.25%Operating expensesApproximately $2.31 billionApproximately $2.06 billionDiluted earnings per share$37.84 ± $1.00$38.15 ± $1.00
Further information regarding Micron’s business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com.
Product Highlights
We began sampling the industry's first 512GB ultra dense high-capacity DDR5 RDIMM modules capable of speeds up to 9,200 MT/s.We have completed multiple customer qualifications of our 1-gamma based, 8,800 MT/s high-speed server RDIMM modules.Our industry leading server LPDDR SOCAMM portfolio revenue more than doubled sequentially in the fourth quarter of 2026.Our 7600 PCIe Gen 5 and 9650 PCIe Gen 6 SSD high-performance products are now shipping to market-leading customers for KV-cache applications.Our 6600 ION SSD achieved a strong volume ramp in the fourth quarter of 2026.We are now shipping 6-channel 1-gamma LPDDR5X for flagship mobile devices.We have secured design wins with every Tier 1 OEM customer for AI workstation product.Our 4600 SSD secured additional qualifications with leading PC OEMs.We began sampling 1-gamma based LPDDR6 products to multiple physical AI markets. Investor Webcast
Micron will host a conference call on Wednesday, September 30, 2026 at 2:30 p.m. Mountain Time to discuss its fourth-quarter and full-year financial results and provide forward-looking guidance for its first quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call.
We encourage you to visit our website at micron.com throughout the quarter for the most current information on the company, including information on financial conferences that we may be attending. You can also follow us on LinkedIn, X (@MicronTech) and YouTube (@MicronTechnology).
About Micron Technology, Inc.
Micron Technology, Inc. is a global leader in semiconductor memory and storage, powering AI and compute-intensive applications from cloud to edge. With a relentless focus on our customers, technology and product leadership, and manufacturing and operational excellence, Micron’s comprehensive portfolio of high-performance DRAM, NAND and NOR solutions deliver the speed, efficiency, and scale today’s workloads demand, accelerating intelligence to enrich life for all. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.
This press release contains forward-looking statements regarding our industry, our strategic position, our customers, including customer demand, our investments and the goals for such investments, our business opportunity, our products and technology, and our financial and operating performance, including our guidance for the first quarter. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results.
(1)GAAP represents U.S. Generally Accepted Accounting Principles.(2)Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings; adjusted free cash flow; investments in capital expenditures, net; and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release. MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
(Unaudited) 4th Qtr.3rd Qtr.4th Qtr.Year Ended September 3,
2026May 28,
2026August 28,
2025September 3,
2026August 28,
2025 Revenue$54,229 $41,456 $11,315 $133,188 $37,378 Cost of goods sold 7,182 6,400 6,261 25,684 22,505 Gross margin 47,047 35,056 5,054 107,504 14,873 Research and development 1,913 1,316 1,047 5,650 3,798 Selling, general, and administrative 859 407 314 1,947 1,205 Other operating (income) expense, net 524 15 39 567 100 Operating income 43,751 33,318 3,654 99,340 9,770 Interest income 575 215 146 1,084 496 Interest expense — — (124) (106) (477)Other non-operating income (expense), net (88) (321) (45) (647) (135) 44,238 33,212 3,631 99,671 9,654 Income tax (provision) benefit (6,583) (4,978) (429) (14,761) (1,124)Equity in net income (loss) of equity method investees 46 9 (1) 59 9 Net income$37,701 $28,243 $3,201 $84,969 $8,539 Earnings per share Basic$33.36 $25.03 $2.86 $75.38 $7.65 Diluted 32.87 24.67 2.83 74.33 7.59 Number of shares used in per share calculations Basic 1,130 1,128 1,120 1,127 1,116 Diluted 1,147 1,145 1,131 1,143 1,125 MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)As ofSeptember 3,
2026May 28,
2026August 28,
2025 Assets Cash and equivalents$38,364 $24,995 $9,642 Short-term investments 5,070 1,027 665 Receivables 36,197 31,025 9,265 Inventories 10,372 8,567 8,355 Other current assets 1,067 1,123 914 Total current assets 91,070 66,737 28,841 Long-term marketable investments 30,019 4,106 1,629 Property, plant, and equipment 63,310 56,426 46,590 Goodwill 1,150 1,150 1,150 Other noncurrent assets 10,339 5,693 4,588 Total assets$195,888 $134,112 $82,798 Liabilities and equity Accounts payable and accrued expenses$22,605 $15,521 $9,649 Current debt 491 582 560 Other current liabilities 4,386 3,385 1,245 Total current liabilities 27,482 19,488 11,454 Long-term debt 4,688 5,140 14,017 Noncurrent unearned government incentives 786 1,020 1,018 Noncurrent customer contract liabilities 12,895 568 142 Other noncurrent liabilities 11,659 7,172 2,002 Total liabilities 57,510 33,388 28,633 Commitments and contingencies Shareholders’ equity Common stock 128 128 127 Additional capital 14,974 14,442 13,339 Retained earnings 131,851 94,682 48,583 Treasury stock (8,502) (8,502) (7,852)Accumulated other comprehensive income (loss) (73) (26) (32)Total equity 138,378 100,724 54,165 Total liabilities and equity$195,888 $134,112 $82,798 MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)For the year endedSeptember 3,
2026August 28,
2025 Cash flows from operating activities Net income$84,969 $8,539 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense and amortization of intangible assets 9,503 8,352 Stock-based compensation 1,333 972 Change in operating assets and liabilities: Receivables (25,206) (1,776)Inventories (2,017) 520 Accounts payable and accrued expenses 8,707 862 Other current liabilities 3,141 (272)Other noncurrent liabilities 9,633 381 Other (388) (53)Net cash provided by operating activities 89,675 17,525 Cash flows from investing activities Purchases of available-for-sale securities (34,871) (1,890)Expenditures for property, plant, and equipment (30,712) (15,857)Purchases of non-marketable equity securities (1,046) (34)Proceeds from government incentives 3,316 2,005 Proceeds from maturities and sales of available-for-sale securities 1,988 1,698 Other (316) (9)Net cash used for investing activities (61,641) (14,087) Cash flows from financing activities Proceeds from customer contract liability deposits 12,747 — Proceeds from issuance of debt — 4,430 Repayments of debt (10,043) (4,619)Repurchases of common stock - withholdings on employee equity awards (1,127) (340)Repurchases of common stock - repurchase program (650) — Payments of dividends to shareholders (610) (522)Other 313 201 Net cash provided by (used for) financing activities 630 (850) Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash 81 6 Net increase in cash, cash equivalents, and restricted cash 28,745 2,594 Cash, cash equivalents, and restricted cash at beginning of period 9,646 7,052 Cash, cash equivalents, and restricted cash at end of period$38,391 $9,646 MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts) 4th Qtr.3rd Qtr.4th Qtr.Year Ended September 3,
2026May 28,
2026August 28,
2025September 3,
2026August 28,
2025 GAAP gross margin$47,047 $35,056 $5,054 $107,504 $14,873 Stock-based compensation 157 143 115 528 409 Other — — — — 4 Non-GAAP gross margin$47,204 $35,199 $5,169 $108,032 $15,286 GAAP operating expenses$3,296 $1,738 $1,400 $8,164 $5,103 Stock-based compensation (207) (198) (147) (754) (566)Patent license charges (500) — — (500) (57)Other (21) (22) (39) (69) (40)Non-GAAP operating expenses$2,568 $1,518 $1,214 $6,841 $4,440 GAAP operating income$43,751 $33,318 $3,654 $99,340 $9,770 Stock-based compensation 364 341 262 1,282 975 Patent license charges 500 — — 500 57 Other 21 22 39 69 44 Non-GAAP operating income$44,636 $33,681 $3,955 $101,191 $10,846 GAAP net income$37,701 $28,243 $3,201 $84,969 $8,539 Stock-based compensation 364 341 262 1,282 975 Patent license charges 500 — — 500 57 Loss on debt prepayments 9 325 9 511 59 Other 22 23 39 50 40 Estimated tax effects of above and other tax adjustments (198) (75) (42) (554) (200)Non-GAAP net income$38,398 $28,857 $3,469 $86,758 $9,470 GAAP weighted-average common shares outstanding - Diluted 1,147 1,145 1,131 1,143 1,125 Adjustment for stock-based compensation 2 4 14 6 18 Non-GAAP weighted-average common shares outstanding - Diluted 1,149 1,149 1,145 1,149 1,143 GAAP diluted earnings per share$32.87 $24.67 $2.83 $74.33 $7.59 Effects of the above adjustments 0.55 0.44 0.20 1.19 0.70 Non-GAAP diluted earnings per share$33.42 $25.11 $3.03 $75.52 $8.29 RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
4th Qtr.3rd Qtr.4th Qtr.Year Ended September 3,
2026May 28,
2026August 28,
2025September 3,
2026August 28,
2025 GAAP net cash provided by operating activities$43,973 $25,388 $5,730 $89,675 $17,525 Expenditures for property, plant, and equipment (11,110) (7,826) (5,658) (30,712) (15,857)Proceeds from sales of property, plant, and equipment 9 9 20 29 48 Proceeds from government incentives 327 733 711 3,316 2,005 Investments in capital expenditures, net (10,774) (7,084) (4,927) (27,367) (13,804)Adjusted free cash flow$33,199 $18,304 $803 $62,308 $3,721
The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, diluted shares, diluted earnings per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items as applicable in analyzing our operating results and understanding trends in our earnings:
Stock-based compensation;Gains and losses from settlements;Gains and losses from debt prepayments;Restructure and asset impairments; andThe estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law. The divergence between our GAAP and non-GAAP income tax (provision) benefit relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately. Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income.
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOKFQ1-27GAAP Outlook Adjustments Non-GAAP Outlook Revenue$61.5 billion ± $1.5 billion — $61.5 billion ± $1.5 billionGross marginApproximately 85.95% 0.30
% A Approximately 86.25%Operating expensesApproximately $2.31 billion $253 million
B Approximately $2.06 billionDiluted earnings per share(1)$37.84 ± $1.00 $0.31
A, B, C $38.15 ± $1.00 Non-GAAP Adjustments
(in millions) AStock-based compensation – cost of goods sold$174 BStock-based compensation – research and development 166 BStock-based compensation – selling, general, and administrative 87 CTax effects of the above items and other tax adjustments (65) $362 (1)GAAP earnings per share and non-GAAP earnings per share based on approximately 1.15 billion diluted shares.
The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.
Micron Technology (MU.O) forecast quarterly revenue above estimates on Wednesday, signaling it expects the AI-driven memory chip boom to continue powering its growth.
Shares of the Boise, Idaho-based company rose over 1% in extended trading. The stock has more than tripled so far this year.
The generative AI boom has made high-bandwidth memory essential for data centers, benefiting companies such as Micron, a key supplier to Nvidia (NVDA.O), whose pricey processors dominate advanced computing workflows.
The company expects first-quarter revenue of $61.5 billion, plus or minus $1.5 billion, compared with analysts' average estimate of $57.02 billion, according to data compiled by LSEG. Adjusted profit is expected to be $38.15 per share in the first quarter, plus or minus $1, above estimates of $35.40.
As the only major US-based HBM chipmaker, Micron has seen orders far exceed capacity, while the AI memory boom has tightened conventional chip supplies and driven prices higher across the broader semiconductor market.
To meet demand, Micron is expanding aggressively and has lifted planned US investments to over $250 billion through 2035, as Amazon (AMZN.O), Alphabet (GOOGL.O) and other tech giants are set to spend more than $730 billion on AI infrastructure this year.
"Micron's complete blowout earnings and forecast should put the nail in the coffin of the ongoing doubters about the resiliency of the AI buildout," said Bob O'Donnell, chief analyst at TECHnalysis Research.
Fourth-quarter revenue more than quadrupled to $54.23 billion, beating estimates of $51.07 billion. Adjusted profit came in at $33.42 per share, exceeding estimates of $31.61.
Micron (MU) closed out the third quarter on Wall Street with earnings that beat on every metric it reports on. Guidance also shows plenty of strength for Micron's forward momentum.
Micron reported better-than-expected quarterly results on Wednesday as the memory maker continues to benefit from soaring demand for AI infrastructure. The stock rose slightly in extended trading.
Here's how the company did relative to LSEG consensus:
Earnings per share: $33.42 adjusted vs. $31.61 expectedRevenue: $54.23 billion vs. $51.07 billion expectedRevenue almost quadrupled in the fiscal fourth quarter from $11.32 billion a year earlier, according to a statement.
For the fiscal first quarter, Micron said it expects revenue of about $61.5 billion and adjusted earnings per share of $38.15. Analysts polled by LSEG had expected $35.40 in adjusted earnings per share on $57 billion in revenue.
Micron's stock has soared more than 500% in the past year, benefiting from a worldwide supply crunch caused by historic levels of demand for memory chips needed for artificial intelligence models and workloads. The shortage has led to a spike in memory costs and resulted in increased prices for consumer electronics like Apple's iPads and MacBooks.
Hendi Susanto, portfolio at Gabelli Funds, said in an email after the release that it was "another strong beat and raise for Micron."
"At this point, I have not heard any negative data points pointing to the memory cycle reversing toward a decline anytime soon for the foreseeable future," Susanto wrote.
Micron is the only U.S.-based maker of high-bandwidth memory, HBM, made up of stacks of general-purpose dynamic random-access memory, or DRAM. Fourth-quarter DRAM revenue increased 343% from a year ago to $39.8 billion, representing 73% of total sales.
CEO Sanjay Mehrotra said on the earnings call that the company has a "strong roadmap for future HBM products" and is working with Nvidia on the industry's "first custom HBM implementation."
Net income in the latest quarter climbed to $37.7 billion, or $32.87 per share, from $3.2 billion, or $2.83 per share a year ago.
Advanced graphics and central processors from chip giants like Nvidia and AMD need increasing amounts of HBM to handle AI workloads, and the world's leading providers can't make enough.
That's why Micron is investing $250 billion to build two new campuses for making HBM. The largest broke ground in Clay, New York, in January, while its first new fab in Boise, Idaho, is scheduled to come online next year.
HBM leaders SK Hynix and Samsung are also in the midst of massive new HBM factory buildouts in their home country of South Korea. Micron holds the smallest HBM market share of the three, but its market cap has still topped $1.2 trillion.
Mehrotra participated in a summit on AI regulation hosted by President Donald Trump on Tuesday, days after attending a White House dinner with Chinese President Xi Jinping on his first visit to the U.S. in more than a decade.
On the call, Mehrotra said Micron increased compensation for every employee in fiscal 2026. Hundreds of Micron staffers threatened to strike at its factories in Taiwan over labor negotiations and pay. Similar strikes at rivals SK Hynix and Samsung have result in bonuses upwards of $500,000.
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The semiconductor company had a fourth-quarter profit of $37.7 billion as its memory chips remained a hot commodity amid the build-out of artificial-intelligence infrastructure.
Micron Technology Inc (NASDAQ:MU) forecast fiscal first-quarter revenue well above expectations on Wednesday, after fourth-quarter revenue surged 379% from a year earlier to $54.23 billion.
The fourth-quarter figure compared with estimates of $51.07 billion. Adjusted earnings per share came in at $33.42, ahead of the $31.61 estimate, while GAAP earnings per share were $32.87.
Adjusted gross margin reached 87.0%, versus an estimate of 86.1%. Adjusted operating income was $44.64 billion and adjusted net income was $38.4 billion, both above estimates. Operating cash flow totaled $43.97 billion, against an estimate of $34.47 billion.
For the first quarter of fiscal 2027, Micron expects revenue of $61.5 billion, plus or minus $1.5 billion, compared with an estimate of $57.02 billion. It guided adjusted earnings per share to $38.15, plus or minus $1, versus an estimate of $35.40. Adjusted gross margin is expected to be about 86.25%, slightly below the 86.4% estimate.
By business unit, Core Data Center revenue was $18 billion, Cloud Memory was $16.28 billion, Mobile and Client was $13.11 billion, and Automotive and Embedded was $6.82 billion.
"Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027," said CEO Sanjay Mehrotra.
Micron said it is now sampling the first 512GB DDR5 memory modules, its new high-speed SSDs are shipping to customers, and has landed AI workstation design wins with every major PC maker.
Shares of Micron gained around 1.5% immediately after the bell.
