Micron Technology (MU) has announced its first start to its fiscal year 2026, reporting record-breaking Q1 results that landed well above the high end of its guidance. The company achieved record revenue of $13.64 billion, driven by strong execution and a tight supply environment for its memory and storage products. The performance was fueled by the accelerating build-out of AI data centers, which has significantly increased demand for Micron’s high-performance memory, particularly its industry-leading HBM4.
Key Financial Metrics
● Revenue: $13.64 billion in revenue, up about 57% year-over-year (YoY) from $8.71 billion prior year, driven largely by strong memory demand.
● Gross Margin: The gross margin expanded significantly to ~56.8%, reflecting improved pricing and mix.
● Earnings Per Share (EPS): Micron’s EPS was $4.78, a strong increase compared with the prior year and beat expectations.
● Free Cash Flow: Micron generated a record $3.9 billion in free cash flow for the quarter.
● Cloud Memory Segment: The cloud memory business unit, which captures AI and data-center demand, grew more than 100% YoY to roughly $5.28 billion, making it one of the largest contributors to revenue growth
● Dividend: A dividend of $0.115 per share will be paid on January 14th, with ex-dividend date of 29th December.
Analysis & Outlook
Micron’s Q1 performance confirms that the company is operating from its strongest competitive position to date, benefiting from a structural shift that has elevated advanced memory to a strategic key of the AI era. A standout development is Micron’s traction in high-bandwidth memory, with supply for calendar 2026 already fully committed, including next-generation HBM4 and management now expecting the HBM addressable market to expand at roughly 40% per year to around $100 billion by 2028, earlier than previously anticipated. With demand continuing to outpace supply, the company expects tight market conditions to persist through and beyond 2026, prompting increased investment in capacity expansion across the US, Asia, and India. This robust outlook for the Q2 of 2026 points to a further acceleration in revenue, margins and earnings, reinforcing Micron’s positioning at the centre of AI-driven growth across data centres, PCs and smartphones.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
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