Micron enters this report as a memory supplier benefiting from an AI-driven data-center buildout, tight advanced-memory supply, and longer-term strategic customer agreements. Its prior-quarter materials already pointed to a powerful Q4 acceleration and structurally constrained supply, so the broad direction was expected; the question was how far results and the next-quarter outlook would run ahead.
| Metric | FQ4-26 / FY26 | Comparison or expectation |
|---|---|---|
| Revenue | $54.23B | $41.46B in FQ3; ~$50.86B consensus |
| Non-GAAP diluted EPS | $33.42 | $25.11 in FQ3; ~$31.45 consensus |
| Non-GAAP gross margin | 87.0% | 84.9% in FQ3 |
| FY26 revenue | $133.19B | $37.38B in FY25 |
| FY26 adjusted free cash flow | $62.31B | $3.72B in FY25 |
| FQ1-27 revenue outlook | $61.5B ± $1.5B | Published consensus was approximately $54.65B |
| FQ1-27 non-GAAP EPS outlook | $38.15 ± $1.00 | Published consensus was approximately $34.80 |
The quarter was a clear earnings beat, not merely a record. Non-GAAP EPS of $33.42 exceeded the published consensus near $31.45, while revenue of $54.23 billion exceeded consensus near $50.86 billion. The underlying operating leverage was substantial: non-GAAP gross margin reached 87.0%, and non-GAAP operating income rose to $44.64 billion from $33.68 billion in the prior quarter. (Quarterly Financial Results)
The more important change is the size of the forward step-up. Micron’s first-quarter outlook calls for $61.5 billion of revenue and $38.15 of non-GAAP EPS, materially above the prior published expectation of roughly $54.65 billion and $34.80. That makes this more than a backward-looking beat: management is signaling that pricing, product mix, and AI-related demand are still strengthening into fiscal 2027. (FQ1-27 Outlook) 〔0〕
Data-center exposure is doing the heavy lifting. Core Data Center revenue reached $18.00 billion, up from $11.52 billion sequentially, with a 90% gross margin and 85% operating margin. Cloud Memory added $16.28 billion of revenue, while Mobile and Client also expanded to $13.11 billion. The result is a broad-based memory upcycle, but with the highest-profit data-center businesses now central to the acceleration. (Quarterly Business Unit Financial Results)
Micron is converting the cycle into cash while spending aggressively to extend it. FY26 operating cash flow was $89.68 billion, adjusted free cash flow was $62.31 billion, and net capital investment reached $27.37 billion. Cash, marketable investments, and restricted cash totaled $73.48 billion, giving the company substantial internal funding for manufacturing and technology expansion. (Cash Flow statement; Financial Highlights)
The main caveat is not visible weakness but the height of the new baseline. Q1 guidance assumes another sequential revenue increase and roughly stable-to-improving margins, while Micron is simultaneously increasing investment in technology, products, and manufacturing. That reinforces the AI-memory growth story, but it also means future results will be judged against unusually elevated expectations rather than against the weak prior-year comparison. (CEO commentary; FQ1-27 Outlook)
Bottom line: This filing materially advances Micron’s business story: the AI-memory surge is producing a substantial earnings beat and a forward outlook well above consensus. The new information is less that demand is strong than that the strength is continuing to compound into fiscal 2027, with data-center margins and cash generation validating the expansion.
Read the original 8-K on SEC EDGAR ↗