Micron Posts Record Q1 Results and Projects More Highs Ahead: Revenue, Margins, and EPS All Set New Benchmarks
Strong Q1 Performance Sets the Pace for 2026: Record Revenue and Expanding Margins
Micron Technology’s first quarter of fiscal 2026 was nothing short of exceptional. The company not only broke its own revenue record—reaching $13.64 billion, up sharply from $8.71 billion in the same period last year—but also saw broad-based margin expansion across all its core businesses. Non-GAAP net income climbed to $5.48 billion ($4.78 per diluted share), a notable surge compared to $2.04 billion a year ago.
This outperformance wasn’t just about sales growth: GAAP gross margin jumped to 56.0% (versus 38.4% last year), and operating cash flow more than doubled, reaching $8.41 billion. CEO Sanjay Mehrotra credited this to robust demand for AI-enabling memory products and consistent execution.
| Key Financials (in $ millions, except per share data) | Q1 FY26 | Q4 FY25 | Q1 FY25 |
|---|---|---|---|
| Revenue | 13,643 | 11,315 | 8,709 |
| Non-GAAP Net Income | 5,482 | 3,469 | 2,037 |
| Non-GAAP Diluted EPS | 4.78 | 3.03 | 1.79 |
| Operating Cash Flow | 8,411 | 5,730 | 3,244 |
| Non-GAAP Gross Margin (%) | 56.8 | 45.7 | 39.5 |
Business Units: Cloud Memory, Mobile, and Automotive Outperform With Higher Margins
Micron’s operational strength is evident when looking deeper at its business units. The Cloud Memory segment saw revenue nearly double year-over-year and achieved a 66% gross margin, leading the company’s margin expansion drive. Mobile and Client, and Automotive/Embedded units also reported impressive gross and operating margin growth, showing that Micron’s product portfolio is benefiting from secular AI and compute demand.
| Business Unit | Q1 FY26 Revenue ($M) | Gross Margin (%) | Operating Margin (%) |
|---|---|---|---|
| Cloud Memory | 5,284 | 66 | 55 |
| Core Data Center | 2,379 | 51 | 37 |
| Mobile and Client | 4,255 | 54 | 47 |
| Automotive & Embedded | 1,720 | 45 | 36 |
Q2 Outlook: Management Expects Records Across the Board
The upbeat momentum is expected to continue. Micron’s Q2 2026 guidance calls for revenue of $18.7 billion (plus or minus $400 million), non-GAAP gross margin at 68%, and non-GAAP EPS at $8.42—all substantial jumps from both prior guidance and the most recent results. The company highlights the role of technology leadership and investment in advanced memory as key to staying ahead of demand trends in AI and data infrastructure.
| Q2 FY26 Outlook (Non-GAAP) | Guidance |
|---|---|
| Revenue | $18.70B +/- $0.4B |
| Gross Margin | 68% +/- 1% |
| Operating Expenses | $1.38B +/- $20M |
| Diluted EPS | $8.42 +/- $0.20 |
Balance Sheet Remains Strong, Supporting Further Investment
Micron’s healthy financial footing is underscored by $12 billion in cash, marketable investments, and restricted cash as of quarter end. With adjusted free cash flow of $3.91 billion and manageable leverage, the company has room to invest aggressively while also returning value via dividends—highlighted by a $0.115/share quarterly dividend announced for January 2026.
What Does This Mean for Investors and Market Watchers?
Micron’s results and forward guidance illustrate both robust demand in AI/data-centric markets and management’s ability to scale efficiently. The story for fiscal 2026 looks like one of compounding growth and sustained profitability, with margins at multi-year highs. The main takeaway: as long as technology megatrends persist, Micron appears well-positioned to capture an outsized share of industry upside.
For those following semiconductors and memory, Micron’s report is a strong signal that industry leaders with AI and data center exposure remain in the growth sweet spot. It’s a reminder to keep an eye on company outlooks, not just quarterly performance—especially when future projections set new benchmarks across revenue, earnings, and free cash flow.
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