10-QPeriod: Q1 FY2026

MICRON TECHNOLOGY INC Quarterly Report for Q1 Ended Nov 27, 2025

Filed December 18, 2025For Securities:MU

Summary

Micron Technology Inc. reported a strong first quarter for fiscal year 2026, with significant year-over-year revenue growth driven by robust demand in both DRAM and NAND segments, particularly fueled by Artificial Intelligence (AI) applications. Revenue surged by 57% compared to the prior year, reaching $13.64 billion, with DRAM sales up 69% and NAND sales up 22%. This growth was propelled by substantial increases in average selling prices (ASPs) for DRAM and higher bit shipments for NAND. The company's gross margin expanded significantly to 56%, up from 38% in the prior year's quarter, reflecting improved pricing, favorable product mix (including HBM and high-capacity data center products), and manufacturing cost reductions. Net income also saw a dramatic increase, more than doubling year-over-year to $5.24 billion, or $4.60 per diluted share. The company continues to invest heavily in capacity expansion, particularly in the U.S. under the CHIPS Act, and maintains a solid liquidity position.

Financial Highlights

50 data points
Beta

Revenue

$13.64B

56.0% Gross Margin

Net Income

$5.24B

38.4% Net Margin

EPS (Diluted)

$4.60

Total Assets

$85.97B

Cash & Equivalents

$9.73B

Free Cash Flow

$3.02B

Financial Statements
Beta
Revenue$13.64B
Cost of Revenue$6.00B
Gross Profit$7.65B
R&D Expenses$1.17B
SG&A Expenses$337.00M
Operating Income$6.14B
Net Income$5.24B
EPS (Basic)$4.66
EPS (Diluted)$4.60
Shares Outstanding (Basic)1.13B
Shares Outstanding (Diluted)1.14B

Key Highlights

  • 1Revenue significantly increased by 57% year-over-year to $13.64 billion, driven by strong demand in DRAM and NAND segments, fueled by AI.
  • 2Gross margin improved substantially to 56% from 38% in the prior year's quarter, due to higher ASPs and cost efficiencies.
  • 3Net income more than doubled year-over-year to $5.24 billion, with diluted EPS of $4.60.
  • 4DRAM revenue grew 69% YoY, with average selling prices increasing by over 30%, and NAND revenue increased 22% YoY due to higher bit shipments.
  • 5The company is making significant capital expenditures, with an estimated $20 billion in capital expenditures for fiscal year 2026, including substantial investments in U.S. manufacturing facilities supported by the CHIPS Act.
  • 6Cash provided by operating activities increased substantially to $8.41 billion for the quarter, reflecting improved profitability.
  • 7Micron declared a quarterly dividend of $0.115 per share, indicating confidence in its financial health and commitment to shareholder returns.

Frequently Asked Questions

The primary drivers for the substantial revenue increase were strong demand in both the DRAM and NAND markets, largely propelled by the accelerating adoption of Artificial Intelligence (AI). This led to significant increases in average selling prices for DRAM and higher bit shipments for NAND, contributing to a 57% year-over-year revenue growth.

Profitability saw a marked improvement driven by a significant expansion in gross margin to 56%, up from 38% in the prior year's quarter. This was achieved through a combination of increased average selling prices, a favorable shift in product mix towards higher-margin products like HBM for data centers, and ongoing manufacturing cost reductions resulting from process and technology improvements.

Micron is undertaking significant capital expenditures, with an estimated $20 billion planned for fiscal year 2026, focusing on expanding leading-edge memory manufacturing capacity, particularly in the United States with support from the CHIPS Act. The company also continues to return value to shareholders through dividend payments and its share repurchase program.

Key risks include volatility in average selling prices, intense industry competition, geopolitical risks affecting international operations, supply chain disruptions, potential product defects, cybersecurity threats, and ongoing litigation related to intellectual property. The company is also subject to government regulations and evolving tax laws.