Micron posts record $43.97 billion in operating cash flow in fourth quarter
Key Facts
Micron reported record fourth-quarter and fiscal-year results on September 30, 2026, for the year ended September 3, saying quarterly operating cash flow reached $43.97 billion. That was above $25.39 billion in the previous quarter and $5.73 billion in the year-earlier period. Revenue also rose to $54.23 billion, compared with $41.46 billion in the previous quarter and $11.32 billion a year earlier. The results show substantial growth in revenue and operating liquidity during a fiscal year in which the company tied its outlook to AI-driven demand. For the full fiscal year, operating cash flow was $89.68 billion, compared with $17.53 billion in the prior fiscal year.
Quarterly net income under U.S. accounting standards was $37.70 billion, or $32.87 per diluted share. Excluding items under the company's non-GAAP measure, net income reached $38.40 billion and diluted earnings per share were $33.42. The company recorded net capital expenditures of $10.77 billion during the quarter, while adjusted free cash flow was $33.20 billion. For the fiscal year, net capital expenditures totaled $27.37 billion and adjusted free cash flow was $62.31 billion. The distinction between operating cash flow and adjusted free cash flow shows the cash remaining after net capital expenditures, according to the company's definition of the adjusted measure.
Micron ended the fiscal year with $73.48 billion in cash, marketable investments and restricted cash. Quarterly revenue was spread across several business units: the Cloud Memory business unit recorded $16.283 billion, and Core Data Center revenue was $18.002 billion. Mobile and Client revenue was $13.114 billion, while Automotive and Embedded revenue was $6.824 billion. These figures put data centers and cloud memory at the top of the listed units by revenue, with a notable contribution from mobile and client activities. Operating cash flow in the third quarter was $25.39 billion, compared with $11.90 billion in the second quarter and $4.61 billion in the same period of the prior fiscal year.
The company forecast first-quarter fiscal 2027 revenue of $61.5 billion, plus or minus $1.5 billion, and a gross margin of about 86.25% under its non-GAAP measure. Chief Executive Sanjay Mehrotra said the company expects fiscal 2027 results to be stronger than the record results of fiscal 2026. On the earnings call, the company said supply and demand conditions for memory and storage are expected to be tighter in fiscal 2027 and 2028 than they were in 2026. Mehrotra added that more than 75% of the company's fiscal 2027 shipments had been committed, and that supply allocation discussions with customers had extended into 2028. The company also expects industry demand for high-bandwidth memory shipments to grow faster than for conventional DRAM through 2028.
On capital returns, the board on September 30, 2026, declared a quarterly cash dividend of $0.15 per share for shareholders of record on October 14, payable on October 29. Micron shares, trading under the ticker MU, closed at $877.55 on October 23, according to EL7 data. Those data show the closing level on that day, while the company statement sets the cash dividend dates. The company had said market conditions in the coming fiscal year were likely to tighten further, while it expected demand for high-bandwidth memory shipments to continue growing through 2028. The first-quarter fiscal 2027 revenue and margin outlook is the next specified milestone in the company's guidance.