Micron Revenue Surges to $54.23 Billion with Strong First-Quarter Guidance
Key Facts
Micron reported record revenue of $54.23 billion in the fourth quarter of fiscal 2026, ended September 3, and CEO Sanjay Mehrotra said the company expects fiscal 2027 to be stronger than the prior year. Revenue was up from $41.46 billion in the previous quarter and $11.32 billion in the same period of fiscal 2025. GAAP net income was $37.70 billion, or $32.87 per diluted share. These results put the company’s guidance for the coming period at the center of assessments of whether its growth can continue, particularly with revenue expected to rise in the first quarter. Mehrotra also said strategic customer agreements strengthen his confidence in the company’s financial performance.
For the full fiscal year, Micron’s revenue rose to $133.19 billion in 2026, compared with $37.38 billion in fiscal 2025. Its annual GAAP gross margin climbed to 80.7% from 39.8% a year earlier. The figures reflect a substantial expansion in revenue and an improvement in margins over the period, while the coming quarterly results will test the company’s ability to sustain that trajectory. In the fourth quarter, the Cloud Memory unit reported revenue of $16.283 billion and a gross margin of 83%. The Mobile and Client unit reported revenue of $13.114 billion and a gross margin of 90%.
The company forecast first-quarter fiscal 2027 revenue of $61.5 billion, plus or minus $1.5 billion. It also set its expected gross margin at about 85.95% on a GAAP basis and 86.25% on a non-GAAP basis. The guidance includes GAAP diluted earnings per share of $37.84, plus or minus $1. These estimates offer a near-term indicator of management’s expectations for revenue and profitability following record results in fiscal 2026. Mehrotra said the company expects “fiscal 2027 to be stronger” than the prior year.
In the high-bandwidth memory (HBM) market, Mehrotra said the company had signed agreements covering most of its HBM supply for 2027, with significant year-over-year price increases. He added that 2027 prices are much higher than 2026 prices, helping to narrow the gross-margin gap between HBM and DRAM not designated for this use. The company said it expects HBM demand to grow faster than overall DRAM demand. These comments link customer agreements and expected pricing with the performance of the memory business next year. Micron also expects supply and demand conditions for memory and storage to be tighter in fiscal 2027 and 2028 than in 2026.
On share buybacks, Micron’s board raised the total authorization to $35.16 billion on October 8, with purchases under the program set to begin on December 9, 2026. The company said the basis for the increase in the authorization was $33.025 billion, calculated from adjusted free cash flow after dividends. The figure sets an approved ceiling for purchases, while the disclosure sets their start date; the authorization does not mean the full amount will be bought immediately. Micron said the start date is tied to restrictions in direct funding agreements under the CHIPS Act. The announcement therefore combines an expanded buyback authorization with a delayed start to purchases.
According to EL7 data, Micron shares closed at $913.67 on October 21 and then at $856.49 on October 22. The prices show a decline in the closing price between the two sessions, without attributing the move to any particular cause. The stock had ended the September 30 session at $1,066.10, up 0.1% in regular trading, before falling 0.78% in after-hours trading following its fourth-quarter results. On its operating plans, Micron said it would increase investment in technology, products and manufacturing to meet demand. It added that strategic customer agreements give it additional confidence in the sustainability of its financial performance.