Overview
- Micron, which reported earnings on September 30, posted unprecedented results with roughly $54.2 billion in Q4 revenue, non‑GAAP gross margins near 87%, and outsized per‑share earnings that drove a record fiscal 2026.
- The company disclosed 26 Strategic Customer Agreements and about $12.7 billion of customer deposits that lock volumes and prices and provide near‑term revenue visibility.
- Micron ran a massive capital program, spending about $27.4 billion in the fiscal year on new fabs and clean rooms in locations such as Idaho and Singapore that are not expected to produce significant output until 2027–2028.
- Despite the cash generation and analyst bullishness with high price targets, investors value the stock at roughly 6–8 times forward earnings and Micron plans to begin returning excess cash to shareholders with large buybacks starting in December.
- The key risk is that new industry capacity, including potential entrants and peers adding HBM and DRAM production, could normalize memory prices once those multi‑year builds come online and erode the current elevated margins.