Micron Technology (MU) MU Financial Results Summary
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Micron Technology, Inc. (MU) Q1 2026 Financial Results Summary
Micron Technology, Inc. (Nasdaq: MU) released its financial results for the first quarter of fiscal 2026 on December 17, 2025, reflecting strong performance driven by AI demand and operational execution.
Fiscal Q1 2026 Highlights
- Revenue: $13.64 billion
- Increased by 20.6% from Q4 2025 ($11.32 billion)
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Increased by 56.5% from Q1 2025 ($8.71 billion)
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GAAP Net Income: $5.24 billion
- Increased by 63.7% from Q4 2025 ($3.20 billion)
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Increased by 179.0% from Q1 2025 ($1.87 billion)
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GAAP Diluted Earnings Per Share (EPS): $4.60
- Increased by 62.5% from Q4 2025 ($2.83)
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Increased by 175.6% from Q1 2025 ($1.67)
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Non-GAAP Net Income: $5.48 billion
- Increased by 57.9% from Q4 2025 ($3.47 billion)
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Increased by 169.4% from Q1 2025 ($2.04 billion)
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Non-GAAP Diluted EPS: $4.78
- Increased by 57.6% from Q4 2025 ($3.03)
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Increased by 167.0% from Q1 2025 ($1.79)
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Operating Cash Flow: $8.41 billion
- Increased by 47.1% from Q4 2025 ($5.73 billion)
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Increased by 160.5% from Q1 2025 ($3.24 billion)
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Investments in Capital Expenditures: $4.5 billion
- Adjusted Free Cash Flow: $3.9 billion
- Cash, Marketable Investments, and Restricted Cash: $12.0 billion at the end of Q1 2026
Quarterly Business Unit Performance
- Cloud Memory Business Unit:
- Revenue: $5.28 billion (up 16.3% from Q4 2025 and up 99.0% from Q1 2025)
- Gross Margin: 66% (up from 59% in Q4 2025 and 51% in Q1 2025)
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Operating Margin: 55% (up from 48% in Q4 2025 and 40% in Q1 2025)
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Core Data Center Business Unit:
- Revenue: $2.38 billion (up 50.9% from Q4 2025 and up 3.8% from Q1 2025)
- Gross Margin: 51% (up from 41% in Q4 2025 and 50% in Q1 2025)
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Operating Margin: 37% (up from 25% in Q4 2025 and 38% in Q1 2025)
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Mobile and Client Business Unit:
- Revenue: $4.26 billion (up 13.1% from Q4 2025 and up 63.2% from Q1 2025)
- Gross Margin: 54% (up from 36% in Q4 2025 and 27% in Q1 2025)
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Operating Margin: 47% (up from 29% in Q4 2025 and 15% in Q1 2025)
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Automotive and Embedded Business Unit:
- Revenue: $1.72 billion (up 20.0% from Q4 2025 and up 48.6% from Q1 2025)
- Gross Margin: 45% (up from 31% in Q4 2025 and 20% in Q1 2025)
- Operating Margin: 36% (up from 20% in Q4 2025 and 7% in Q1 2025)
Shareholder Actions
- The 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.
- There were share repurchases amounting to $300 million during this quarter.
Business Outlook
For the second quarter of fiscal 2026, Micron has provided the following guidance:
- Revenue: $18.70 billion ± $400 million
- GAAP Gross Margin: 67.0% ± 1.0%
- Non-GAAP Gross Margin: 68.0% ± 1.0%
- Operating Expenses: $1.56 billion ± $20 million
- GAAP Diluted EPS: $8.19 ± $0.20
- Non-GAAP Diluted EPS: $8.42 ± $0.20
Conclusion
Micron’s financial performance in Q1 2026 reflects significant growth metrics across various segments, underscoring its strategic investments and commitment to capitalize on the demand for memory and storage solutions in AI applications.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
| 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)
(Unaudited)
| 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 |