Micron Posts Record Fiscal 2026 Results on AI-Driven Memory Shortage

The results leave Micron with large net cash, repayable customer deposits, plus capex plans that won't ramp until late 2027–2028, testing whether storage product gains can preserve current margins.

Overview

Micron delivered landmark fiscal 2026 results with $133.2 billion in revenue, an 81.1% gross margin in Q4, and non-GAAP Q4 EPS of $33.42, driving a roughly $1.1 trillion market valuation.
Management guided Q1 fiscal 2027 revenue of $60–63 billion, signaling near-term growth driven by strong demand for DRAM and NAND from AI data centers.
NAND prices rose about 30% sequentially in the quarter and data-center SSD revenue neared $10 billion as Micron introduced high-density drives that cut rack, power, and cooling needs for customers.
The company converted massive cash flow into about $68 billion of net cash and $62 billion of adjusted free cash flow but also holds roughly $13 billion of repayable customer deposits and has large multi‑billion dollar fab investments whose output is not expected to scale until late 2027–2028.
Key risks to sustaining margins include new supply and competitors entering the market, possible labor or geopolitical disruption in Taiwan, and the chance that memory prices normalize once new capacity comes online, which would pressure today's profits and investor expectations at around 7x forward P/E.