Micron Technology Inc.: Q4 FY2026 earnings call

What management said about Q4 FY2026, from the documents filed with the SEC on 30 September 2026: press release. Guidance figures: 8 new. The quarter’s numbers.

Key takeaways

Revenue rose sharply from prior periods: Revenue was $54.23 billion, up from $41.46 billion in the third quarter and $11.32 billion a year earlier. Fiscal 2026 revenue was $133.19 billion versus $37.38 billion. Source
Core Data Center grew most: Core Data Center revenue was $18.00 billion, up 56% from $11.52 billion. Gross margin was 90% and operating margin 85%, against 87% and 83% in the third quarter. Source
Gross margin rose to 86.8%: GAAP gross margin was 86.8% and non-GAAP 87.0%, against 84.6% and 84.9% in the third quarter. Source
Operating cash flow reached $43.97 billion: Operating cash flow was $43.97 billion, up from $25.39 billion in the prior quarter and $5.73 billion a year earlier. Source
Cash and investments reached $73.48B: Cash, marketable investments and restricted cash ended the year at $73.48 billion. Source
Revenue guided to $61.5 billion: Revenue for the first quarter of 2027 is guided to $61.5 billion, plus or minus $1.5 billion, on GAAP and non-GAAP bases. Source
Diluted EPS guided to $37.84: GAAP diluted EPS is guided to $37.84 plus or minus $1.00; non-GAAP diluted EPS to $38.15 plus or minus $1.00. Source
Investment in technology and manufacturing rising: Management said it is increasing investments in technology, products and manufacturing to drive AI forward with customers. Source

“Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027”
Sanjay Mehrotra, Chairman and CEO of Micron Technology

Guidance

Area	Period	Figure	Against last quarter
Revenue Source	First quarter of 2027	$61.5 billion ± $1.5 billion	New
Gross margin (GAAP) Source	First quarter of 2027	Approximately 85.95%	New
Gross margin (non-GAAP) Source	First quarter of 2027	Approximately 86.25%	New
Operating expenses (GAAP) Source	First quarter of 2027	Approximately $2.31 billion	New
Operating expenses (non-GAAP) Source	First quarter of 2027	Approximately $2.06 billion	New
Diluted EPS (GAAP) Source	First quarter of 2027	$37.84 ± $1.00	New
Diluted EPS (non-GAAP) Source	First quarter of 2027	$38.15 ± $1.00	New
Diluted share count Source	First quarter of 2027	Approximately 1.15 billion diluted shares	New

What changed from last quarter

New guidance: Guidance given for the first quarter of 2027: revenue, gross margin, operating expenses, diluted EPS and share count. Source
New: A $500 million patent license charge appears in fourth-quarter GAAP operating expenses; the third-quarter reconciliation shows none. Source
New: Micron began sampling a 512GB DDR5 RDIMM module, which is not in the third-quarter product highlights. Source

Results and growth drivers

Revenue rose sharply from prior periods: Revenue was $54.23 billion, up from $41.46 billion in the third quarter and $11.32 billion a year earlier. Fiscal 2026 revenue was $133.19 billion versus $37.38 billion. Source
Net income and EPS for the quarter: GAAP net income was $37.70 billion, or $32.87 per diluted share. Non-GAAP net income was $38.40 billion, or $33.42 per diluted share. Source
Full-year net income and EPS: Fiscal 2026 GAAP net income was $84.97 billion, or $74.33 per diluted share, against $8.54 billion and $7.59 in fiscal 2025. Source

Business unit results

Core Data Center grew most: Core Data Center revenue was $18.00 billion, up 56% from $11.52 billion. Gross margin was 90% and operating margin 85%, against 87% and 83% in the third quarter. Source
Cloud Memory revenue rose 18%: Cloud Memory revenue was $16.28 billion, up from $13.77 billion. Gross margin was 83%, unchanged, and operating margin was 76%, down from 78%. Source
Mobile and Client revenue rose 14%: Mobile and Client revenue was $13.11 billion, up from $11.52 billion. Gross margin was 90% and operating margin 88%. Source
Automotive and Embedded revenue rose 47%: Automotive and Embedded revenue was $6.82 billion, up from $4.63 billion. Gross margin was 84%, up from 79%, and operating margin 79%, up from 75%. Source

“AI is becoming Super Intelligence (SI), and memory enhances this intelligence and the competitiveness of our customers’ platforms.”
Sanjay Mehrotra, Chairman and CEO of Micron Technology

Products and customers

Server SOCAMM revenue more than doubled: Management said server LPDDR SOCAMM portfolio revenue more than doubled sequentially in the fourth quarter. Source
Server RDIMM qualifications completed: Management said it completed multiple customer qualifications of 1-gamma based 8,800 MT/s server RDIMM modules. Source
512GB DDR5 RDIMM sampling began: Sampling began on 512GB DDR5 RDIMM modules rated up to 9,200 MT/s, described as the industry's first of this density. Source
AI workstation design wins secured: Management said it has design wins with every Tier 1 OEM customer for AI workstation product. Source
SSDs shipping for KV-cache uses: The 7600 PCIe Gen 5 and 9650 PCIe Gen 6 SSDs are shipping to market-leading customers for KV-cache applications. Source

Margins and operating costs

Gross margin rose to 86.8%: GAAP gross margin was 86.8% and non-GAAP 87.0%, against 84.6% and 84.9% in the third quarter. Source
Operating expenses rose on R&D: GAAP operating expenses were $3.30 billion, up from $1.74 billion. Non-GAAP operating expenses were $2.57 billion, up from $1.52 billion. Source
Operating margin reached 80.7%: GAAP operating margin was 80.7%, against 80.4% in the third quarter. Non-GAAP operating margin was 82.3%, against 81.2%. Source
Patent license charge excluded from non-GAAP: A $500 million patent license charge is in GAAP operating expenses and is excluded from the non-GAAP figures. Source
Income tax provision increased: The income tax provision was $6.58 billion in the fourth quarter, against $4.98 billion in the third quarter. Source

“We are increasing our investments in technology, products and manufacturing to help drive SI forward with our customers, and our Strategic Customer Agreements provide added confidence in the durability of Micron’s financial performance.”
Sanjay Mehrotra, Chairman and CEO of Micron Technology

Cash flow and capital spending

Operating cash flow reached $43.97 billion: Operating cash flow was $43.97 billion, up from $25.39 billion in the prior quarter and $5.73 billion a year earlier. Source
Adjusted free cash flow totals: Adjusted free cash flow was $33.20 billion for the quarter and $62.31 billion for fiscal 2026. Net capital investment was $10.77 billion and $27.37 billion. Source
Gross PP&E spending rose: Expenditures for property, plant and equipment were $11.11 billion in the quarter and $30.71 billion in fiscal 2026, partly offset by government incentive proceeds. Source
Customer deposits funded cash flow: Customer contract liability deposits brought in $12.75 billion in fiscal 2026, while debt repayments were $10.04 billion. Source

Balance sheet and shareholder returns

Cash and investments reached $73.48B: Cash, marketable investments and restricted cash ended the year at $73.48 billion. Source
Quarterly dividend held at $0.15: The Board declared a $0.15 per share quarterly dividend, the same amount as the prior quarter, payable October 29, 2026. Source
Employee equity withholdings rose: Repurchases for employee equity award withholdings were $1.13 billion in fiscal 2026, against $340 million a year earlier. Source
Customer contract liabilities rose sharply: Noncurrent customer contract liabilities were $12.90 billion at fiscal year-end, against $568 million in May 2026 and $142 million a year earlier. Source
Long-term debt declined: Long-term debt was $4.69 billion, down from $5.14 billion in the prior quarter and $14.02 billion a year earlier. Source

Guidance for first quarter fiscal 2027

Revenue guided to $61.5 billion: Revenue for the first quarter of 2027 is guided to $61.5 billion, plus or minus $1.5 billion, on GAAP and non-GAAP bases. Source
Diluted EPS guided to $37.84: GAAP diluted EPS is guided to $37.84 plus or minus $1.00; non-GAAP diluted EPS to $38.15 plus or minus $1.00. Source
Margin and expense guidance set: GAAP gross margin is approximately 85.95% and non-GAAP 86.25%. GAAP operating expenses are approximately $2.31 billion and non-GAAP $2.06 billion. Source
Share count assumption stated: Per-share guidance is based on about 1.15 billion diluted shares, and excludes any unannounced business combinations or divestitures. Source

Strategy and customer agreements

Investment in technology and manufacturing rising: Management said it is increasing investments in technology, products and manufacturing to drive AI forward with customers. Source
Strategic Customer Agreements add confidence: Management said the Strategic Customer Agreements provide added confidence in the durability of financial performance. Source
Memory framed as Super Intelligence enabler: Management said AI is becoming Super Intelligence and that memory enhances this intelligence and customers' platforms. Source

Coming up, as management said on 30 September 2026

Dividend payment on October 29: The $0.15 per share dividend is payable in cash on October 29, 2026, to holders of record on October 14, 2026. Source
Further first-quarter guidance detail posted: Further information on the first-quarter 2027 guidance is in the prepared remarks and slides posted at investors.micron.com. Source

Figures management reported

Figure	Reported
Gross margin (GAAP) Source	86.8%
Gross margin (non-GAAP) Source	87.0%
Cloud Memory Business Unit revenue Source	$16,283 million
Core Data Center Business Unit revenue Source	$18,002 million
Mobile and Client Business Unit revenue Source	$13,114 million
Automotive and Embedded Business Unit revenue Source	$6,824 million

Risks management discussed

External: Guidance excludes potential business combinations, divestitures, restructuring and financing transactions, whose timing is uncertain. Source
Regulatory: A $500 million patent license charge was recorded in fourth-quarter GAAP operating expenses and excluded from non-GAAP results. 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 RECORD FISCAL

FOURTH-QUARTER AND FULL-YEAR 2026 RESULTS

AI-driven demand and strong operational execution position Micron for a record fiscal 2027

BOISE, Idaho, September 30, 2026 - Micron Technology, Inc. (Nasdaq: MU) today announced results for its fourth quarter and full year of fiscal 2026, which ended September 3, 2026.

Fiscal Q4 2026 Highlights

Revenue of $54.23 billion versus $41.46 billion for the prior quarter and $11.32 billion for the same period last year
GAAP net income of $37.70 billion, or $32.87 per diluted share
Non-GAAP net income of $38.40 billion, or $33.42 per diluted share
Operating cash flow of $43.97 billion versus $25.39 billion for the prior quarter and $5.73 billion for the same period last year

Fiscal 2026 Highlights

Revenue of $133.19 billion versus $37.38 billion for the prior year
GAAP net income of $84.97 billion, or $74.33 per diluted share
Non-GAAP net income of $86.76 billion, or $75.52 per diluted share
Operating cash flow of $89.68 billion versus $17.53 billion for the prior year

“Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027,” said Sanjay Mehrotra, Chairman and CEO of Micron Technology. “AI is becoming Super Intelligence (SI), and memory enhances this intelligence and the competitiveness of our customers’ platforms. We are increasing our investments in technology, products and manufacturing to help drive SI forward with our customers, and our Strategic Customer Agreements provide added confidence in the durability of Micron’s financial performance.”

Quarterly Financial Results
(in millions, except per share amounts)	GAAP				Non-GAAP
FQ4-26	FQ3-26	FQ4-25		FQ4-26	FQ3-26	FQ4-25
Revenue	$54,229	$41,456	$11,315		$54,229	$41,456	$11,315
Gross margin	47,047	35,056	5,054		47,204	35,199	5,169
Percent of revenue	86.8%	84.6%	44.7%		87.0%	84.9%	45.7%
Operating expenses	3,296	1,738	1,400		2,568	1,518	1,214
Operating income	43,751	33,318	3,654		44,636	33,681	3,955
Percent of revenue	80.7%	80.4%	32.3%		82.3%	81.2%	35.0%
Net income	37,701	28,243	3,201		38,398	28,857	3,469
Diluted earnings per share	32.87	24.67	2.83		33.42	25.11	3.03

Annual Financial Results
(in millions, except per share amounts)	GAAP			Non-GAAP
FY-26	FY-25		FY-26	FY-25
Revenue	$133,188	$37,378		$133,188	$37,378
Gross margin	107,504	14,873		108,032	15,286
Percent of revenue	80.7%	39.8%		81.1%	40.9%
Operating expenses	8,164	5,103		6,841	4,440
Operating income	99,340	9,770		101,191	10,846
Percent of revenue	74.6%	26.1%		76.0%	29.0%
Net income	84,969	8,539		86,758	9,470
Diluted earnings per share	74.33	7.59		75.52	8.29

Investments in capital expenditures, net were $10.77 billion for the fourth quarter of 2026 and $27.37 billion for the full year of 2026. Adjusted free cash flow was $33.20 billion for the fourth quarter of 2026 and $62.31 billion for the full year of 2026. Micron ended the year with cash, marketable investments, and restricted cash of $73.48 billion. On September 30, 2026, Micron’s Board of Directors declared a quarterly dividend of $0.15 per share, payable in cash on October 29, 2026, to shareholders of record as of the close of business on October 14, 2026.

	FQ4-26	FQ3-26	FQ4-25
Quarterly Business Unit Financial Results
Cloud Memory Business Unit
Revenue	$16,283	$13,769	$4,543
Gross margin	83%	83%	59%
Operating margin	76%	78%	48%
Core Data Center Business Unit
Revenue	$18,002	$11,524	$1,577
Gross margin	90%	87%	41%
Operating margin	85%	83%	25%
Mobile and Client Business Unit
Revenue	$13,114	$11,521	$3,760
Gross margin	90%	87%	36%
Operating margin	88%	86%	29%
Automotive and Embedded Business Unit
Revenue	$6,824	$4,634	$1,434
Gross margin	84%	79%	31%
Operating margin	79%	75%	20%

Business Outlook

The following table presents Micron’s guidance for the first quarter of 2027:

FQ1-27	GAAP Outlook	Non-GAAP Outlook
Revenue	$61.5 billion ± $1.5 billion	$61.5 billion ± $1.5 billion
Gross margin	Approximately 85.95%	Approximately 86.25%
Operating expenses	Approximately $2.31 billion	Approximately $2.06 billion
Diluted earnings per share	$37.84 ± $1.00	$38.15 ± $1.00

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

Product Highlights

We began sampling the industry's first 512GB ultra dense high-capacity DDR5 RDIMM modules capable of speeds up to 9,200 MT/s.
We have completed multiple customer qualifications of our 1-gamma based, 8,800 MT/s high-speed server RDIMM modules.
Our industry leading server LPDDR SOCAMM portfolio revenue more than doubled sequentially in the fourth quarter of 2026.
Our 7600 PCIe Gen 5 and 9650 PCIe Gen 6 SSD high-performance products are now shipping to market-leading customers for KV-cache applications.
Our 6600 ION SSD achieved a strong volume ramp in the fourth quarter of 2026.
We are now shipping 6-channel 1-gamma LPDDR5X for flagship mobile devices.
We have secured design wins with every Tier 1 OEM customer for AI workstation product.
Our 4600 SSD secured additional qualifications with leading PC OEMs.
We began sampling 1-gamma based LPDDR6 products to multiple physical AI markets.

Investor Webcast

Micron will host a conference call on Wednesday, September 30, 2026 at 2:30 p.m. Mountain Time to discuss its fourth-quarter and full-year financial results and provide forward-looking guidance for its first 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 a global leader in semiconductor memory and storage, powering AI and compute-intensive applications from cloud to edge. With a relentless focus on our customers, technology and product leadership, and manufacturing and operational excellence, Micron’s comprehensive portfolio of high-performance DRAM, NAND and NOR solutions deliver the speed, efficiency, and scale today’s workloads demand, accelerating intelligence to enrich life for all. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

© 2026 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, our customers, including customer demand, our investments and the goals for such investments, our business opportunity, our products and technology, and our financial and operating performance, including our guidance for the first quarter. 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)

	4th Qtr.	3rd Qtr.	4th Qtr.	Year Ended
	September 3, 2026	May 28, 2026	August 28, 2025	September 3, 2026	August 28, 2025
Revenue	$54,229	$41,456	$11,315	$133,188	$37,378
Cost of goods sold	7,182	6,400	6,261	25,684	22,505
Gross margin	47,047	35,056	5,054	107,504	14,873
Research and development	1,913	1,316	1,047	5,650	3,798
Selling, general, and administrative	859	407	314	1,947	1,205
Other operating (income) expense, net	524	15	39	567	100
Operating income	43,751	33,318	3,654	99,340	9,770
Interest income	575	215	146	1,084	496
Interest expense	-	-	(124)	(106)	(477)
Other non-operating income (expense), net	(88)	(321)	(45)	(647)	(135)
	44,238	33,212	3,631	99,671	9,654
Income tax (provision) benefit	(6,583)	(4,978)	(429)	(14,761)	(1,124)
Equity in net income (loss) of equity method investees	46	9	(1)	59	9
Net income	$37,701	$28,243	$3,201	$84,969	$8,539
Earnings per share
Basic	$33.36	$25.03	$2.86	$75.38	$7.65
Diluted	32.87	24.67	2.83	74.33	7.59
Number of shares used in per share calculations
Basic	1,130	1,128	1,120	1,127	1,116
Diluted	1,147	1,145	1,131	1,143	1,125

CONSOLIDATED BALANCE SHEETS

(In millions)

As of	September 3, 2026	May 28, 2026	August 28, 2025
Assets
Cash and equivalents	$38,364	$24,995	$9,642
Short-term investments	5,070	1,027	665
Receivables	36,197	31,025	9,265
Inventories	10,372	8,567	8,355
Other current assets	1,067	1,123	914
Total current assets	91,070	66,737	28,841
Long-term marketable investments	30,019	4,106	1,629
Property, plant, and equipment	63,310	56,426	46,590
Goodwill	1,150	1,150	1,150
Other noncurrent assets	10,339	5,693	4,588
Total assets	$195,888	$134,112	$82,798
Liabilities and equity
Accounts payable and accrued expenses	$22,605	$15,521	$9,649
Current debt	491	582	560
Other current liabilities	4,386	3,385	1,245
Total current liabilities	27,482	19,488	11,454
Long-term debt	4,688	5,140	14,017
Noncurrent unearned government incentives	786	1,020	1,018
Noncurrent customer contract liabilities	12,895	568	142
Other noncurrent liabilities	11,659	7,172	2,002
Total liabilities	57,510	33,388	28,633
Commitments and contingencies
Shareholders’ equity
Common stock	128	128	127
Additional capital	14,974	14,442	13,339
Retained earnings	131,851	94,682	48,583
Treasury stock	(8,502)	(8,502)	(7,852)
Accumulated other comprehensive income (loss)	(73)	(26)	(32)
Total equity	138,378	100,724	54,165
Total liabilities and equity	$195,888	$134,112	$82,798

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

For the year ended	September 3, 2026	August 28, 2025
Cash flows from operating activities
Net income	$84,969	$8,539
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense and amortization of intangible assets	9,503	8,352
Stock-based compensation	1,333	972
Change in operating assets and liabilities:
Receivables	(25,206)	(1,776)
Inventories	(2,017)	520
Accounts payable and accrued expenses	8,707	862
Other current liabilities	3,141	(272)
Other noncurrent liabilities	9,633	381
Other	(388)	(53)
Net cash provided by operating activities	89,675	17,525
Cash flows from investing activities
Purchases of available-for-sale securities	(34,871)	(1,890)
Expenditures for property, plant, and equipment	(30,712)	(15,857)
Purchases of non-marketable equity securities	(1,046)	(34)
Proceeds from government incentives	3,316	2,005
Proceeds from maturities and sales of available-for-sale securities	1,988	1,698
Other	(316)	(9)
Net cash used for investing activities	(61,641)	(14,087)
Cash flows from financing activities
Proceeds from customer contract liability deposits	12,747	-
Proceeds from issuance of debt	-	4,430
Repayments of debt	(10,043)	(4,619)
Repurchases of common stock - withholdings on employee equity awards	(1,127)	(340)
Repurchases of common stock - repurchase program	(650)	-
Payments of dividends to shareholders	(610)	(522)
Other	313	201
Net cash provided by (used for) financing activities	630	(850)
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash	81	6
Net increase in cash, cash equivalents, and restricted cash	28,745	2,594
Cash, cash equivalents, and restricted cash at beginning of period	9,646	7,052
Cash, cash equivalents, and restricted cash at end of period	$38,391	$9,646

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(In millions, except per share amounts)

	4th Qtr.	3rd Qtr.	4th Qtr.	Year Ended
	September 3, 2026	May 28, 2026	August 28, 2025	September 3, 2026	August 28, 2025
GAAP gross margin	$47,047	$35,056	$5,054	$107,504	$14,873
Stock-based compensation	157	143	115	528	409
Other	-	-	-	-	4
Non-GAAP gross margin	$47,204	$35,199	$5,169	$108,032	$15,286
GAAP operating expenses	$3,296	$1,738	$1,400	$8,164	$5,103
Stock-based compensation	(207)	(198)	(147)	(754)	(566)
Patent license charges	(500)	-	-	(500)	(57)
Other	(21)	(22)	(39)	(69)	(40)
Non-GAAP operating expenses	$2,568	$1,518	$1,214	$6,841	$4,440
GAAP operating income	$43,751	$33,318	$3,654	$99,340	$9,770
Stock-based compensation	364	341	262	1,282	975
Patent license charges	500	-	-	500	57
Other	21	22	39	69	44
Non-GAAP operating income	$44,636	$33,681	$3,955	$101,191	$10,846
GAAP net income	$37,701	$28,243	$3,201	$84,969	$8,539
Stock-based compensation	364	341	262	1,282	975
Patent license charges	500	-	-	500	57
Loss on debt prepayments	9	325	9	511	59
Other	22	23	39	50	40
Estimated tax effects of above and other tax adjustments	(198)	(75)	(42)	(554)	(200)
Non-GAAP net income	$38,398	$28,857	$3,469	$86,758	$9,470
GAAP weighted-average common shares outstanding - Diluted	1,147	1,145	1,131	1,143	1,125
Adjustment for stock-based compensation	2	4	14	6	18
Non-GAAP weighted-average common shares outstanding - Diluted	1,149	1,149	1,145	1,149	1,143
GAAP diluted earnings per share	$32.87	$24.67	$2.83	$74.33	$7.59
Effects of the above adjustments	0.55	0.44	0.20	1.19	0.70
Non-GAAP diluted earnings per share	$33.42	$25.11	$3.03	$75.52	$8.29

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued

	4th Qtr.	3rd Qtr.	4th Qtr.	Year Ended
	September 3, 2026	May 28, 2026	August 28, 2025	September 3, 2026	August 28, 2025
GAAP net cash provided by operating activities	$43,973	$25,388	$5,730	$89,675	$17,525
Expenditures for property, plant, and equipment	(11,110)	(7,826)	(5,658)	(30,712)	(15,857)
Proceeds from sales of property, plant, and equipment	9	9	20	29	48
Proceeds from government incentives	327	733	711	3,316	2,005
Investments in capital expenditures, net	(10,774)	(7,084)	(4,927)	(27,367)	(13,804)
Adjusted free cash flow	$33,199	$18,304	$803	$62,308	$3,721

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 settlements;
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

FQ1-27	GAAP Outlook	Adjustments			Non-GAAP Outlook
Revenue	$61.5 billion ± $1.5 billion	-			$61.5 billion ± $1.5 billion
Gross margin	Approximately 85.95%	0.30%		A	Approximately 86.25%
Operating expenses	Approximately $2.31 billion	$253 million		B	Approximately $2.06 billion
Diluted earnings per share	$37.84 ± $1.00		$0.31	A, B, C	$38.15 ± $1.00

Non-GAAP Adjustments(in millions)
A	Stock-based compensation - cost of goods sold	$174
B	Stock-based compensation - research and development	166
B	Stock-based compensation - selling, general, and administrative	87
C	Tax effects of the above items and other tax adjustments	(65)
		$362

GAAP earnings per share 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