Micron Technology Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 17 December 2025: press release. Guidance figures: 8 new. The quarter’s numbers.

Key takeaways

Revenue set a record: Revenue was $13.64 billion, against $11.32 billion in the prior quarter and $8.71 billion a year earlier. GAAP net income was $5.24 billion, or $4.60 per diluted share; non-GAAP was $4.78 per diluted share. Source
Operating margin rose to 45%: GAAP operating income was $6.14 billion, or 45.0% of revenue, against 32.3% in the prior quarter. Non-GAAP operating income was $6.42 billion, or 47.0% of revenue, against 35.0%. Source
Free cash flow was the highest ever: Adjusted free cash flow was $3.9 billion, against $803 million in the prior quarter. Operating cash flow was $8.41 billion, against $5.73 billion. Source
Cloud Memory gross margin reached 66%: Cloud Memory operating margin was 55%, against 48% in the prior quarter and 40% a year earlier. Gross margin was 59% in the prior quarter. Source
Non-GAAP gross margin widened: Non-GAAP gross margin was $7.75 billion, or 56.8% of revenue, against 45.7% in the prior quarter. Stock-based compensation of $107 million in cost of goods sold accounts for the difference from GAAP. Source
Capex net was $4.5 billion: Investments in capital expenditures, net were $4.5 billion, against $4.93 billion in the prior quarter. Gross PP&E expenditures were $5.39 billion, with $878 million of government incentive proceeds. Source

“In fiscal Q1, Micron delivered record revenue and significant margin expansion at the company level and also in each of our business units,”
Sanjay Mehrotra, Chairman, President and CEO of Micron Technology

Guidance

Area	Period	Figure	Against last quarter
Revenue Source	fiscal Q2 2026	$18.70 billion ± $400 million	New
Gross margin (GAAP) Source	fiscal Q2 2026	67.0% ± 1.0%	New
Gross margin (non-GAAP) Source	fiscal Q2 2026	68.0% ± 1.0%	New
Operating expenses (GAAP) Source	fiscal Q2 2026	$1.56 billion ± $20 million	New
Operating expenses (non-GAAP) Source	fiscal Q2 2026	$1.38 billion ± $20 million	New
Diluted EPS (GAAP) Source	fiscal Q2 2026	$8.19 ± $0.20	New
Diluted EPS (non-GAAP) Source	fiscal Q2 2026	$8.42 ± $0.20	New
Diluted share count Source	fiscal Q2 2026	approximately 1.14 billion GAAP, 1.15 billion non-GAAP	New

What changed from last quarter

New guidance: This release gives guidance for fiscal Q2 2026 on revenue, gross margin, operating expenses and EPS, on GAAP and non-GAAP bases. Source

Record quarter and results

Revenue set a record: Revenue was $13.64 billion, against $11.32 billion in the prior quarter and $8.71 billion a year earlier. GAAP net income was $5.24 billion, or $4.60 per diluted share; non-GAAP was $4.78 per diluted share. Source
Operating margin rose to 45%: GAAP operating income was $6.14 billion, or 45.0% of revenue, against 32.3% in the prior quarter. Non-GAAP operating income was $6.42 billion, or 47.0% of revenue, against 35.0%. Source
Free cash flow was the highest ever: Adjusted free cash flow was $3.9 billion, against $803 million in the prior quarter. Operating cash flow was $8.41 billion, against $5.73 billion. Source

Business unit margins

Cloud Memory gross margin reached 66%: Cloud Memory operating margin was 55%, against 48% in the prior quarter and 40% a year earlier. Gross margin was 59% in the prior quarter. Source
Mobile and Client gross margin rose most: Mobile and Client gross margin was 54%, against 36% in the prior quarter; operating margin was 47%, against 29%. A year earlier the figures were 27% and 15%. Source
Core Data Center margins increased: Core Data Center gross margin was 51%, against 41% in the prior quarter and 50% a year earlier. Operating margin was 37%, against 25% in the prior quarter. Source
Automotive and Embedded margins up: Automotive and Embedded gross margin was 45%, against 31% in the prior quarter. Operating margin was 36%, against 20% in the prior quarter and 7% a year earlier. Source

“Our Q2 outlook reflects substantial records across revenue, gross margin, EPS and free cash flow, and we anticipate our business performance to continue strengthening through fiscal 2026.”
Sanjay Mehrotra, Chairman, President and CEO of Micron Technology

Gross margin and operating costs

Non-GAAP gross margin widened: Non-GAAP gross margin was $7.75 billion, or 56.8% of revenue, against 45.7% in the prior quarter. Stock-based compensation of $107 million in cost of goods sold accounts for the difference from GAAP. Source
Operating expenses increased: GAAP operating expenses were $1.51 billion, against $1.40 billion; non-GAAP were $1.33 billion, against $1.21 billion. Research and development spending was $1.17 billion. Source
Restructuring absent; debt prepayment loss: No restructure and asset impairment charge was recorded, against $38 million in the prior quarter. Loss on debt prepayments was $130 million, against $9 million in the prior quarter. Source

AI demand and products

Results credited to AI demand: The company linked the quarter’s record results, including free cash flow, to AI demand acceleration and to Micron execution. Source
Portfolio spans DRAM, NAND and NOR: The company describes its portfolio as high-performance DRAM, NAND, and NOR memory and storage products, serving uses from the data center to the intelligent edge. Source
Industry leader in memory and storage: The company describes itself as an industry leader in innovative memory and storage solutions, with products across the data center, client and mobile experience. Source

“Micron’s technology leadership, differentiated product portfolio, and strong operational execution position us as an essential AI enabler, and we are investing to support our customers’ growing need for memory and storage.”
Sanjay Mehrotra, Chairman, President and CEO of Micron Technology

Cash flow and capital spending

Capex net was $4.5 billion: Investments in capital expenditures, net were $4.5 billion, against $4.93 billion in the prior quarter. Gross PP&E expenditures were $5.39 billion, with $878 million of government incentive proceeds. Source
Cash and marketable holdings $12.0 billion: The company reported cash, marketable investments and restricted cash of $12.0 billion, against $11.94 billion in the prior quarter. Source
Debt repayments of $2.94 billion: Repayments of debt were $2,943 million, against $84 million a year earlier. Long-term debt fell to $11,187 million from $14,017 million at August 28, 2025. Source

Shareholder returns and dividends

Quarterly dividend declared at $0.115: The Board declared the quarterly dividend on December 17, 2025, with payment on January 14, 2026 to holders of record on December 29, 2025. Source
Buybacks and dividends paid in quarter: Repurchases under the program totaled $300 million; dividends paid were $134 million. Source
Diluted share count increased: Diluted weighted-average shares were 1,138 million, against 1,131 million in the prior quarter. Source

Coming up, as management said on 17 December 2025

Guidance detail in prepared remarks: Further guidance detail is in the prepared remarks and slides posted at investors.micron.com. Source

Figures management reported

Figure	Reported
Gross margin (GAAP), percent of revenue Source	56.0%
Cloud Memory BU revenue Source	$5,284 million
Core Data Center BU revenue Source	$2,379 million
Mobile and Client BU revenue Source	$4,255 million
Automotive and Embedded BU revenue Source	$1,720 million
Inventories (balance sheet) Source	$8,205 million

Risks management discussed

External: The guidance excludes potential business combinations, divestitures, additional restructuring activities and similar transactions, whose timing and impact are outside the company's control. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

MICRON TECHNOLOGY, INC. REPORTS RESULTS FOR THE

FIRST QUARTER OF FISCAL 2026

AI demand acceleration and Micron execution drive record fiscal Q1 results,

including highest ever free cash flow

BOISE, Idaho, December 17, 2025 - Micron Technology, Inc. (Nasdaq: MU) today announced results for its first quarter of fiscal 2026, which ended November 27, 2025.

Fiscal Q1 2026 highlights

Revenue of $13.64 billion versus $11.32 billion for the prior quarter and $8.71 billion for the same period last year
GAAP net income of $5.24 billion, or $4.60 per diluted share
Non-GAAP net income of $5.48 billion, or $4.78 per diluted share
Operating cash flow of $8.41 billion versus $5.73 billion for the prior quarter and $3.24 billion for the same period last year

“In fiscal Q1, Micron delivered record revenue and significant margin expansion at the company level and also in each of our business units,” said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology. “Our Q2 outlook reflects substantial records across revenue, gross margin, EPS and free cash flow, and we anticipate our business performance to continue strengthening through fiscal 2026. Micron’s technology leadership, differentiated product portfolio, and strong operational execution position us as an essential AI enabler, and we are investing to support our customers’ growing need for memory and storage.”

Quarterly Financial Results
(in millions, except per share amounts)	GAAP				Non-GAAP
FQ1-26	FQ4-25	FQ1-25		FQ1-26	FQ4-25	FQ1-25
Revenue	$13,643	$11,315	$8,709		$13,643	$11,315	$8,709
Gross margin	7,646	5,054	3,348		7,753	5,169	3,441
Percent of revenue	56.0%	44.7%	38.4%		56.8%	45.7%	39.5%
Operating expenses	1,510	1,400	1,174		1,334	1,214	1,047
Operating income	6,136	3,654	2,174		6,419	3,955	2,394
Percent of revenue	45.0%	32.3%	25.0%		47.0%	35.0%	27.5%
Net income	5,240	3,201	1,870		5,482	3,469	2,037
Diluted earnings per share	4.60	2.83	1.67		4.78	3.03	1.79

For the first quarter of 2026, investments in capital expenditures, net were $4.5 billion and adjusted free cash flow was $3.9 billion. Micron ended the year with cash, marketable investments, and restricted cash of $12.0 billion. On December 17, 2025, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on January 14, 2026, to shareholders of record as of the close of business on December 29, 2025.

	FQ1-26	FQ4-25	FQ1-25
Quarterly Business Unit Financial Results
Cloud Memory Business Unit
Revenue	$5,284	$4,543	$2,648
Gross margin	66%	59%	51%
Operating margin	55%	48%	40%
Core Data Center Business Unit
Revenue	$2,379	$1,577	$2,292
Gross margin	51%	41%	50%
Operating margin	37%	25%	38%
Mobile and Client Business Unit
Revenue	$4,255	$3,760	$2,608
Gross margin	54%	36%	27%
Operating margin	47%	29%	15%
Automotive and Embedded Business Unit
Revenue	$1,720	$1,434	$1,158
Gross margin	45%	31%	20%
Operating margin	36%	20%	7%

Business Outlook

The following table presents Micron’s guidance for the second quarter of 2026:

FQ2-26	GAAP Outlook	Non-GAAP Outlook
Revenue	$18.70 billion ± $400 million	$18.70 billion ± $400 million
Gross margin	67.0% ± 1.0%	68.0% ± 1.0%
Operating expenses	$1.56 billion ± $20 million	$1.38 billion ± $20 million
Diluted earnings per share	$8.19 ± $0.20	$8.42 ± $0.20

Further information regarding Micron’s business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com.

Investor Webcast

Micron will host a conference call on Wednesday, December 17, 2025 at 2:30 p.m. Mountain Time to discuss its first quarter financial results and provide forward-looking guidance for its second quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call.

We encourage you to visit our website at micron.com throughout the quarter for the most current information on the company, including information on financial conferences that we may be attending. You can also follow us on LinkedIn, X (@MicronTech) and YouTube (@MicronTechnology).

About Micron Technology, Inc.

Micron Technology, Inc. is an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities - from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

© 2025 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements regarding our industry, our strategic position, and our financial and operating results, including our guidance for the second quarter of 2026. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results.

GAAP represents U.S. Generally Accepted Accounting Principles.

Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings; adjusted free cash flow; investments in capital expenditures, net; and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share amounts)

	1st Qtr.	4th Qtr.	1st Qtr.
	November 27, 2025	August 28, 2025	November 28, 2024
Revenue	$13,643	$11,315	$8,709
Cost of goods sold	5,997	6,261	5,361
Gross margin	7,646	5,054	3,348
Research and development	1,171	1,047	888
Selling, general, and administrative	337	314	288
Other operating (income) expense, net	2	39	(2)
Operating income	6,136	3,654	2,174
Interest income	139	146	107
Interest expense	(74)	(124)	(118)
Other non-operating income (expense), net	(140)	(45)	(11)
	6,061	3,631	2,152
Income tax (provision) benefit	(829)	(429)	(283)
Equity in net income (loss) of equity method investees	8	(1)	1
Net income	$5,240	$3,201	$1,870
Earnings per share
Basic	$4.66	$2.86	$1.68
Diluted	4.60	2.83	1.67
Number of shares used in per share calculations
Basic	1,125	1,120	1,111
Diluted	1,138	1,131	1,122

CONSOLIDATED BALANCE SHEETS

(In millions)

As of	November 27, 2025	August 28, 2025
Assets
Cash and equivalents	$9,731	$9,642
Short-term investments	587	665
Receivables	10,184	9,265
Inventories	8,205	8,355
Other current assets	958	914
Total current assets	29,665	28,841
Long-term marketable investments	1,697	1,629
Property, plant, and equipment	48,477	46,590
Operating lease right-of-use assets	700	736
Intangible assets	465	453
Deferred tax assets	641	616
Goodwill	1,150	1,150
Other noncurrent assets	3,176	2,783
Total assets	$85,971	$82,798
Liabilities and equity
Accounts payable and accrued expenses	$9,796	$9,649
Current debt	569	560
Other current liabilities	1,695	1,245
Total current liabilities	12,060	11,454
Long-term debt	11,187	14,017
Noncurrent operating lease liabilities	669	701
Noncurrent unearned government incentives	1,148	1,018
Other noncurrent liabilities	2,101	1,443
Total liabilities	27,165	28,633
Commitments and contingencies
Shareholders’ equity
Common stock	127	127
Additional capital	13,610	13,339
Retained earnings	53,344	48,583
Treasury stock	(8,152)	(7,852)
Accumulated other comprehensive income (loss)	(123)	(32)
Total equity	58,806	54,165
Total liabilities and equity	$85,971	$82,798

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

Three months ended	November 27, 2025	November 28, 2024
Cash flows from operating activities
Net income	$5,240	$1,870
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense and amortization of intangible assets	2,212	2,030
Stock-based compensation	290	220
Change in operating assets and liabilities:
Receivables	(871)	(817)
Inventories	150	170
Accounts payable and accrued expenses	156	(241)
Other current liabilities	449	(161)
Other noncurrent liabilities	547	132
Other	238	41
Net cash provided by operating activities	8,411	3,244
Cash flows from investing activities
Expenditures for property, plant, and equipment	(5,389)	(3,206)
Purchases of available-for-sale securities	(255)	(377)
Proceeds from government incentives	878	65
Proceeds from maturities and sales of available-for-sale securities	268	428
Other	(96)	(58)
Net cash used for investing activities	(4,594)	(3,148)
Cash flows from financing activities
Repayments of debt	(2,943)	(84)
Repurchases of common stock - withholdings on employee equity awards	(367)	(207)
Repurchases of common stock - repurchase program	(300)	-
Payments of dividends to shareholders	(134)	(131)
Other	(1)	-
Net cash used for financing activities	(3,745)	(422)
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash	14	(29)
Net increase (decrease) in cash, cash equivalents, and restricted cash	86	(355)
Cash, cash equivalents, and restricted cash at beginning of period	9,646	7,052
Cash, cash equivalents, and restricted cash at end of period	$9,732	$6,697

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(In millions, except per share amounts)

	1st Qtr.	4th Qtr.	1st Qtr.
	November 27, 2025	August 28, 2025	November 28, 2024
GAAP gross margin	$7,646	$5,054	$3,348
Stock-based compensation	107	115	90
Other	-	-	3
Non-GAAP gross margin	$7,753	$5,169	$3,441
GAAP operating expenses	$1,510	$1,400	$1,174
Stock-based compensation	(173)	(147)	(127)
Restructure and asset impairments	-	(38)	-
Other	(3)	(1)	-
Non-GAAP operating expenses	$1,334	$1,214	$1,047
GAAP operating income	$6,136	$3,654	$2,174
Stock-based compensation	280	262	217
Restructure and asset impairments	-	38	-
Other	3	1	3
Non-GAAP operating income	$6,419	$3,955	$2,394
GAAP net income	$5,240	$3,201	$1,870
Stock-based compensation	280	262	217
Restructure and asset impairments	-	38	-
Loss on debt prepayments	130	9	-
Other	(20)	1	-
Estimated tax effects of above and other tax adjustments	(148)	(42)	(50)
Non-GAAP net income	$5,482	$3,469	$2,037
GAAP weighted-average common shares outstanding - Diluted	1,138	1,131	1,122
Adjustment for stock-based compensation	10	14	16
Non-GAAP weighted-average common shares outstanding - Diluted	1,148	1,145	1,138
GAAP diluted earnings per share	$4.60	$2.83	$1.67
Effects of the above adjustments	0.18	0.20	0.12
Non-GAAP diluted earnings per share	$4.78	$3.03	$1.79

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued

	1st Qtr.	4th Qtr.	1st Qtr.
	November 27, 2025	August 28, 2025	November 28, 2024
GAAP net cash provided by operating activities	$8,411	$5,730	$3,244
Expenditures for property, plant, and equipment	(5,389)	(5,658)	(3,206)
Proceeds from sales of property, plant, and equipment	6	20	9
Proceeds from government incentives	878	711	65
Investments in capital expenditures, net	(4,505)	(4,927)	(3,132)
Adjusted free cash flow	$3,906	$803	$112

The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, diluted shares, diluted earnings per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items as applicable in analyzing our operating results and understanding trends in our earnings:

Stock-based compensation;
Gains and losses from debt prepayments;
Restructure and asset impairments; and
The estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law. The divergence between our GAAP and non-GAAP income tax (provision) benefit relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately.

Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income.

RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK

FQ2-26	GAAP Outlook	Adjustments			Non-GAAP Outlook
Revenue	$18.70 billion ± $400 million	-			$18.70 billion ± $400 million
Gross margin	67.0% ± 1.0%		1.0%	A	68.0% ± 1.0%
Operating expenses	$1.56 billion ± $20 million	$180 million		B	$1.38 billion ± $20 million
Diluted earnings per share	$8.19 ± $0.20		$0.23	A, B, C	$8.42 ± $0.20

Non-GAAP Adjustments(in millions)
A	Stock-based compensation - cost of goods sold	$125
B	Stock-based compensation - research and development	119
B	Stock-based compensation - sales, general, and administrative	61
C	Tax effects of the above items and other tax adjustments	(48)
		$257

GAAP earnings per share based on approximately 1.14 billion diluted shares and non-GAAP earnings per share based on approximately 1.15 billion diluted shares.

The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.

Contacts
Satya Kumar · Investor Relations · satyakumar@micron.com · (408) 450-6199
Mark Plungy · Media Relations · mplungy@micron.com · (408) 203-2910