Full Year · Fiscal year 2026 · Published by Pham Hop
Micron's fiscal 2026 revenue rose 256% to $133.2 billion and net income nearly tenfold to $85.0 billion as memory prices soared; Q4 beat guidance at $54.2 billion, but next quarter's gross margin is guided slightly lower.
Revenue
$133.2B
+256.3% YoY
Net income
$85.0B
+895.1% YoY
Diluted EPS
$74.33
+879.3% YoY
Operating margin
74.6%
This period vs a year ago
Same period last year
This period
Revenue▲+256.3%
≈$37.4B
$133.2B
Net income▲+895.1%
≈$8.5B
$85.0B
Diluted EPS▲+879.3%
≈$7.59
$74.33
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
How MU compares with Information Technology peers
MU
Peer median
Each peer (hover for name)
Revenue growth (YoY)+256.3% · median +22.1% · 1st of 63
Micron's fiscal 2026 (the 53 weeks ended September 3, 2026) produced revenue of $133.19 billion, up 256% from $37.38 billion, and GAAP net income of $84.97 billion, almost ten times the $8.54 billion of fiscal 2025. The fourth quarter alone brought in $54.23 billion, more than the whole of fiscal 2025 combined, and beat the top of management's own guidance range by $3.2 billion. What drove it is visible in one line of the income statement: cost of goods sold, what it costs Micron to make the chips it sold, rose only 14% for the year while revenue rose 256%. Micron sold somewhat more memory at much higher prices, and almost all of the extra price fell straight to profit.
At a glance
74.6% operating margin for the full year (up from 26.1%). Operating margin is the share of revenue left after running the business, before interest and tax; Micron kept about 75 cents of every sales dollar.
$62.3 billion of adjusted free cash flow, the cash left after paying for new factories and equipment, against $3.7 billion a year earlier. Micron ended the year with $73.5 billion of cash and investments and only about $5.2 billion of debt.
Next quarter is guided to $61.5 billion of revenue (±$1.5 billion), but gross margin is guided slightly lower, to about 86.0% from the 86.8% just reported, a sign that price gains are levelling off.
EPS growth (YoY)+879.3% · median +37.7% · 2nd of 56
≤ -25.9%≥ +879.3%
Rank 1 = fastest revenue growth, highest operating margin, fastest EPS growth. Peers are the other Information Technology companies with a 2026 report on this site, each at its latest period we've analyzed; fiscal calendars differ, so periods are not always the same months.
Operating income
$99,340M
$9,770M
+916.8%
Operating margin
74.6%
26.1%
+48.5 pts
Net income (GAAP)
$84,969M
$8,539M
+895.1%
Diluted EPS (GAAP)
$74.33
$7.59
+879.3%
Diluted EPS (non-GAAP)
$75.52
$8.29
+811.0%
Operating cash flow
$89,675M
$17,525M
+411.7%
Capital spending, net of government incentives
$27,367M
$13,804M
+98.3%
Adjusted free cash flow
$62,308M
$3,721M
+1,574.5%
And the fourth quarter on its own, which shows where the year ended:
Metric
FQ4 2026
FQ3 2026
FQ4 2025
YoY Change
Revenue
$54,229M
$41,456M
$11,315M
+379.3%
Gross margin
86.8%
84.6%
44.7%
+42.1 pts
Operating margin
80.7%
80.4%
32.3%
+48.4 pts
Net income (GAAP)
$37,701M
$28,243M
$3,201M
+1,077.8%
Diluted EPS (GAAP)
$32.87
$24.67
$2.83
+1,061.5%
All figures are from Micron's fiscal Q4 2026 earnings release (Exhibit 99.1 to its 8-K filed September 30, 2026). The full 10-K, which will contain the DRAM versus NAND revenue split, bit-shipment and pricing commentary and management's discussion of results, had not been filed when this was written.
A 14-week quarter flatters the sequential jump
The release does not call this out, but the period dates do: fiscal 2026 ran from August 29, 2025 to September 3, 2026, which is 53 weeks, and the fourth quarter (May 29 to September 3) was 14 weeks against 13 for the third quarter and for the year-ago fourth quarter. That extra week matters when reading growth rates:
Headline sequential revenue growth was 30.8%. Per week of selling, it was about 21.5%, roughly the same pace management had guided to.
Year-over-year comparisons for the quarter and the year carry about 8% and 2% more selling days respectively. At growth rates of 379% and 256% this does not change the story, but it is not nothing.
The first quarter of fiscal 2027 should return to a normal 13 weeks. On that basis, the $61.5 billion guide is a 13.4% sequential increase in the headline, but about a 22% increase per week, so the guide does not signal a slowdown in demand.
Business units: data center leads, phones and PCs slow
Micron reports four business units by customer type rather than by product. The release does not split revenue between DRAM (working memory, including the high-bandwidth memory, or HBM, stacked next to AI processors) and NAND (storage, as in SSDs), so the unit view is what this filing allows.
Business unit
FQ4 2026 revenue
FQ4 2025 revenue
YoY
QoQ (per week)
FQ4 2026 op. margin
FQ4 2025 op. margin
Core Data Center (CDBU)
$18,002M
$1,577M
+1,041.5%
+56.2% (+45%)
85%
25%
Cloud Memory (CMBU)
$16,283M
$4,543M
+258.4%
+18.3% (+10%)
76%
48%
Mobile and Client (MCBU)
$13,114M
$3,760M
+248.8%
+13.8% (+6%)
88%
29%
Automotive and Embedded (AEBU)
$6,824M
$1,434M
+375.9%
+47.3% (+37%)
79%
20%
Three things stand out.
Core Data Center overtook Cloud Memory as the largest unit. CDBU covers enterprise and smaller cloud customers plus data-center storage; CMBU covers the largest cloud companies and all HBM. CDBU grew 56% in the quarter and CMBU 18%, and CMBU was the only unit whose operating margin fell (78% to 76%). The release gives no reason. One reading consistent with how HBM is usually sold, on volume and price agreed well in advance, is that the unit holding most of the pre-negotiated business captures less of a rising spot market than units that reprice quickly. That is an inference, not something Micron states; the 10-K should settle it. Together the two data-center units were 63% of revenue, up from 54% a year earlier.
Mobile and Client is slowing, as expected. It grew only about 6% per week sequentially, the weakest of the four, but still earned the highest margin in the company at 88%. That combination means price is still rising a little and volume is not. Phone and PC makers are absorbing memory costs at levels they have not seen before; the release gives no bit-shipment figures to show whether they are cutting memory content per device.
Automotive and Embedded, the smallest unit, is the fastest climber after CDBU, up about 37% per week sequentially, with operating margin at 79% against 20% a year earlier. The release gives no unit-level explanation.
On AI products, the release lists LPDDR SOCAMM server memory revenue more than doubling sequentially, first shipments of PCIe Gen 6 SSDs for "KV-cache applications" (the working memory an AI model keeps while answering a long prompt), and sampling of 512GB DDR5 server modules. It does not give HBM revenue.
Takeaway: Micron finished fiscal 2026 with an 81% fourth-quarter operating margin and $73.5 billion of cash against about $5.2 billion of debt, so whatever happens to memory prices next, this cycle has already repaired its balance sheet completely. The first sign of a ceiling is in the guide: revenue keeps rising but gross margin is guided below the quarter just reported, which is what a price plateau looks like when more volume moves onto contracts that cap price near calendar Q2 2026 levels.
What the headline numbers hide
Cash conversion is good, with two caveats. Operating cash flow of $89.7 billion was 1.06 times net income for the year and 1.17 times in the fourth quarter. Receivables, money customers owe but have not yet paid, rose by $25.2 billion over the year, which would normally be a warning sign, but they grew more slowly than sales: receivables equal to about 65 days of fourth-quarter revenue, down from about 75 days a year ago. The caveats: about $9.6 billion of operating cash flow came from an increase in "other noncurrent liabilities," which the release does not explain (the Q3 10-Q showed noncurrent income taxes payable at $5.79 billion, up from $648 million, so part of it is tax owed but not yet paid). And the $12.75 billion of customer deposits Micron received is booked as financing cash flow, not operating, so it does not inflate operating cash flow, but it is money Micron will owe back in product.
GAAP and adjusted earnings are close. Non-GAAP net income was $86.76 billion, $1.79 billion above GAAP. The adjustments are stock-based compensation ($1.28 billion before tax), a $500 million patent license charge booked in the fourth quarter, and $511 million of losses from repaying debt early, partly offset by tax. None of these changes the picture.
Fourth-quarter operating expenses ran well above guidance. GAAP operating expenses were $3.30 billion against guidance of about $1.86 billion. The $500 million patent charge explains part of it; the rest came from research and development ($1.91 billion, up from $1.32 billion) and selling, general and administrative ($859 million, up from $407 million). The 14-week quarter accounts for a little of that. Guidance for the next quarter, at $2.31 billion, implies the fourth quarter was not the new run rate, but the release does not say what drove the jump.
EPS growth came entirely from operations. Diluted share count rose 1.6% (1,143 million versus 1,125 million), so buybacks did not help: Micron bought back $650 million of stock in the year, all of it before the fourth quarter. The tax rate also worked against earnings, rising to 14.8% from 11.6% as the OECD's 15% global minimum tax took effect in Singapore. Interest expense fell to zero by the fourth quarter after $10.04 billion of debt was repaid, but that saving is tiny next to $99 billion of operating income.
Inventory is rising. Inventories were $10.37 billion, up 21% from the end of the third quarter and 24% from a year earlier. Measured against cost of goods sold, that is about 142 days of inventory versus 121 a year ago. In a shortage, rising inventory may mean work in progress building ahead of new capacity rather than unsold product. The release does not say, and it is worth watching in the 10-K.
Cash is being parked long-term. Long-term marketable investments rose to $30.0 billion from $4.1 billion in a single quarter, as Micron moved surplus cash into longer-dated securities.
Did last time's read hold up?
Our fiscal Q3 report argued that pricing had not yet peaked, flagged Mobile and Client as the pressure point, and said the size of take-or-pay contracts (contracts where the customer pays for a committed volume whether or not it takes delivery) would decide how durable this was.
Guidance: beaten. Micron had guided the quarter to $50.0 billion (±$1.0 billion) revenue, about 86% gross margin and $30.73 (±$1.00) EPS. It delivered $54.23 billion, 86.8% and $32.87. Pricing had indeed not peaked by the fourth quarter.
Mobile and Client: slowing as flagged. Its sequential growth was the weakest of the four units, though its margin kept rising. Bit shipments, which we said to watch, are not in this release.
Contracts and deposits: arriving. Micron expected roughly $18 billion of cash deposits from its strategic customer agreements. By year-end it had received $12.75 billion, and noncurrent customer contract liabilities rose to $12.90 billion from $568 million at the end of the third quarter. The CEO's statement that these agreements "provide added confidence in the durability of Micron's financial performance" repeats the trade-off we described: a price floor in exchange for giving up some upside.
Capital spending: on plan. Net capital spending was $27.37 billion against guidance of about $27 billion.
Outlook
For fiscal Q1 2027, Micron guides to:
FQ1 2027 guidance
GAAP
Non-GAAP
Revenue
$61.5B ± $1.5B
$61.5B ± $1.5B
Gross margin
~85.95%
~86.25%
Operating expenses
~$2.31B
~$2.06B
Diluted EPS
$37.84 ± $1.00
$38.15 ± $1.00
CEO Sanjay Mehrotra said Micron expects "an even stronger fiscal 2027." The guide supports that for at least one more quarter: at the midpoint, one 13-week quarter would bring in nearly half of fiscal 2026's entire revenue.
Our view. The direction of revenue is still up; the direction of margin is flat to slightly down. The gross margin guide of about 86% after 86.8% is small, but it fits the contract terms disclosed in the third quarter, where the largest agreements cap price near the calendar Q2 2026 market level. As more of Micron's volume moves under those agreements, gross margin should stop rising even if spot memory prices do not fall. The bigger risk is unchanged from last quarter: new capacity from Micron and its competitors arrives from mid-calendar 2027, and that is the usual way memory cycles end. Micron enters that period with $73.5 billion of cash, almost no debt and about $12.9 billion of customer deposits tied to future supply. The 10-K, due shortly, is the place to check three things this release leaves open: the DRAM/NAND split and bit shipments, why Cloud Memory's margin slipped, and what drove inventory and operating expenses higher in the fourth quarter.