Micron Technology 2026 Q1 Earnings Record Net Income Surges 180.2%

Micron Technology (MU) reported fiscal 2026 Q1 results that far exceeded expectations, with revenue rising 56.7% year-over-year and net income hitting a 20-year high. The company also raised its Q2 guidance, forecasting revenue and earnings well above analyst estimates.

Revenue

Micron’s Q1 revenue surged to $13.64 billion, driven by robust demand across all business segments. The Cloud Memory Business Unit led with $5.28 billion, while the Core Data Center Business Unit contributed $2.38 billion. Mobile and Client Business Unit revenue totaled $4.25 billion, and the Automotive and Embedded Business Unit added $1.72 billion. This diversification underscores Micron’s strong market position across data center, mobile, and industrial applications.

Earnings/Net Income

The company’s non-GAAP EPS soared 177.4% to $4.78, with net income reaching $5.24 billion—180.2% higher than the prior year. These results reflect Micron’s strategic focus on high-bandwidth memory (HBM) and operational efficiency, positioning it as a key player in the AI-driven semiconductor landscape. The EPS growth highlights the company’s ability to capitalize on rising demand for advanced memory solutions.

Post-Earnings Price Action Review

Despite the strong earnings, Micron’s stock faced short-term volatility, declining 4.66% in the latest trading day and 14.48% for the week. However, historical backtesting reveals a compelling pattern: buying shares after a quarterly revenue decline and selling after 30 days generated a 360.53% return over three years, outperforming the benchmark by 279.92%. This strategy’s 67.40% CAGR and zero maximum drawdown suggest robust risk-adjusted returns, though recent price weakness may reflect broader market sentiment rather than fundamentals.

CEO Commentary

Sanjay Mehrotra, CEO, emphasized Micron’s leadership in HBM4 and its 40% CAGR trajectory, projecting the HBM total addressable market to hit $100 billion by 2028. He also highlighted strategic investments in cleanroom capacity and advanced node transitions, reinforcing confidence in the company’s ability to meet surging AI-driven demand.

Guidance

Micron raised its Q2 revenue forecast to $18.7 billion ± $400 million, with non-GAAP EPS guidance of $8.42 ± $0.20. The company expects gross margins to remain strong at 68.0% ± 1.0%, driven by pricing power and operational efficiency. These projections signal continued momentum as AI infrastructure spending accelerates.

Additional News

1. Business Restructuring: Micron announced its exit from the Crucial consumer business, focusing on higher-margin enterprise and industrial segments.

2. Dividend Update: The board declared a quarterly dividend of $0.115 per share, payable in January 2026, reflecting confidence in sustained cash flow.

3. Investor Engagement: Executives participated in RBC Capital Markets’ 2025 Global Technology Conference, signaling transparency and commitment to stakeholder communication.