Micron Posts Record FY26 Results as Stock Pulls Back

Overview

• Micron reported exceptional FY26 results with very large revenue, gross margins above 80% and EPS far above estimates, driven by AI and data‑center memory demand.
• The company disclosed sizable multi‑year customer commitments and deposits that give unusual near‑term revenue visibility and support current pricing.
• Investors have pushed the share price down roughly 20% in October even as some analysts call the roughly 5x forward P/E a buying opportunity.
• Micron is spending heavily to build new fabs and clean rooms, but those projects are not expected to meaningfully add volume until late 2027–2028, creating timing and execution risk.
• Key watch points that could erode margins are the timing of Micron’s capacity ramps, potential new competitor supply such as CXMT, customer inventory moves, and CHIPS Act rules that delay buybacks until December.