Micron Fiscal Q4 2026 Earnings: Revenue Surges as Margins Expand

Micron Technology (Nasdaq: MU) reported fiscal Q4 2026 revenue of $54.23 billion, up about 379% from $11.32 billion a year earlier, while GAAP diluted EPS rose to $32.87 from $2.83. GAAP gross margin expanded to 86.8%, and operating cash flow reached $43.97 billion as all four business units reported substantial revenue and margin growth. The quarter ended September 3, 2026, and Micron released the results on September 30.

Core Earnings Results

Revenue increased nearly fivefold year over year, but profit grew even faster as the cost base expanded much more slowly. GAAP operating expenses rose to $3.30 billion from $1.40 billion, while revenue increased by $42.91 billion.

The difference between GAAP and non-GAAP earnings was relatively limited compared with total profit. Q4 adjustments included $500 million of patent license charges, $364 million of stock-based compensation and related tax effects.

Business Unit Performance

Growth was broad rather than concentrated in one division. Core Data Center became the largest business unit by quarterly revenue and recorded the fastest year-over-year expansion, while Mobile and Client produced the highest operating margin at 88%.

Gross margins across the four units reached 83% to 90%, compared with 31% to 59% one year earlier. Operating margins increased to 76% to 88% from a prior-year range of 20% to 48%.

Product activity also advanced during the quarter. Revenue from Micron’s server LPDDR SOCAMM portfolio more than doubled sequentially, while the company began or expanded shipments of SSD products for KV-cache, PC and other applications. Micron also reported AI workstation design wins with every Tier 1 OEM customer, although it did not quantify these products’ contribution to total revenue.

Revenue Growth Far Outpaced Costs and Lifted Cash Generation

The primary numerical driver of margin expansion was the gap between revenue and cost growth. GAAP cost of goods sold increased by about 15% to $7.18 billion, compared with revenue growth of about 379%. Operating expenses increased by about 135%, including higher research and development and selling, general and administrative expenses, but still grew far more slowly than gross profit.

Operating cash flow of $43.97 billion covered $10.77 billion of net capital expenditures, leaving adjusted free cash flow of $33.20 billion. These amounts represented approximately 81% and 61% of quarterly revenue, respectively.

Micron ended the fiscal year with $73.48 billion of cash, marketable investments and restricted cash. Current and long-term debt totaled about $5.18 billion. However, receivables increased to $36.20 billion from $9.27 billion a year earlier, while inventory rose to $10.37 billion from $8.36 billion. For the full fiscal year, the increase in receivables used $25.21 billion of operating cash flow.

Fiscal Q1 2027 Guidance

Micron’s initial fiscal Q1 2027 outlook points to further sequential revenue and EPS growth, although the projected gross margin is modestly below fiscal Q4’s level. The revenue guidance range is $60.0 billion to $63.0 billion.

The outlook therefore implies another increase in revenue and earnings, but not continued gross-margin expansion. The relationship between growth and the guided margin decline will be an important measure of whether the Q4 profitability level can be sustained.

Management’s View

Chairman and CEO Sanjay Mehrotra said Micron expects fiscal 2027 to be stronger than fiscal 2026. Management linked its outlook to AI-related demand for memory, continued investment in technology, products and manufacturing, and Strategic Customer Agreements that it believes add confidence in the durability of financial performance. The company did not provide a quantified revenue contribution from those agreements.

Recent Insider Transactions

The supplied insider-transaction data shows four purchases totaling 887 shares and 19 sales totaling 337,619 shares during the past six months. That resulted in net sales of 336,732 shares across 23 transactions; total insider holdings were reported at approximately 2.69 million shares.

The five most recent individual rows in the supplied data were all direct sales. These records are presented objectively and do not by themselves establish insiders’ views of Micron’s outlook.

Risks Investors Need to Watch

• Margins are guided slightly lower: Fiscal Q1 guidance calls for GAAP gross margin of approximately 85.95%, down from 86.8% in Q4 even as revenue is projected to rise.
• Investment requirements remain substantial: Q4 net capital expenditures were $10.77 billion, and management said it is increasing investments in technology, products and manufacturing. Higher spending could reduce future free cash flow if operating cash generation does not keep pace.
• Working capital has expanded: Receivables reached $36.20 billion, and their fiscal-year increase absorbed $25.21 billion of cash. The conversion of those receivables into cash is therefore important to future cash-flow performance.
• Current profitability depends on very high business-unit margins: All four units reported gross margins above 80%. Any broad reversal would have a material effect on consolidated earnings, while the next-quarter guidance already anticipates a modest decline.

Summary

Micron’s fiscal Q4 2026 results reflected broad revenue growth, substantial margin expansion and much higher cash generation, with Core Data Center leading the business units. Fiscal Q1 guidance indicates that growth is expected to continue, though with a slight sequential decline in gross margin. The main items to monitor are margin durability, the cash impact of rising investment and receivables, and whether Micron’s product activity and customer agreements support the scale of performance projected for fiscal 2027.