MU Q1 2026 Earnings Call Summary

Total Revenue: $13.6 billion, up 21% sequentially and 57% year-over-year, setting a quarterly record for the third consecutive quarter.
DRAM Revenue: $10.8 billion (79% of total revenue), up 69% year-over-year and 20% sequentially.
NAND Revenue: $2.7 billion (20% of total revenue), up 22% year-over-year and sequentially.
Gross Margin: 56.8%, up 11 percentage points sequentially.
Operating Income: $6.4 billion, with an operating margin of 47%.
Non-GAAP EPS: $4.78, reflecting 58% sequential growth and 167% year-over-year.
Free Cash Flow: Record $3.9 billion, with operating cash flows of $8.4 billion and capital expenditures of $4.5 billion.
Debt Reduction: Reduced by $2.7 billion, ending with $11.8 billion in debt.

Micron achieved record revenues across all business units, driven by strong demand and tight supply conditions.
The company has completed agreements for its entire calendar 2026 HBM supply, projecting a HBM total addressable market (TAM) CAGR of approximately 40% through 2028.
Micron's technology leadership is emphasized with successful ramping of its 1-gamma DRAM node and G9 NAND, which are expected to drive bit growth in 2026.
The company is focused on maximizing production output and expanding its manufacturing footprint, including new fabs in Idaho and New York, to meet increasing demand.
AI-driven demand is highlighted as a key growth driver, with Micron positioned as a significant enabler in the semiconductor industry.

For Q2 2026, Micron expects revenue to be a record $18.7 billion, with gross margins projected at 68%.
Anticipates substantial growth in revenue, gross margin, EPS, and free cash flow for the full fiscal year 2026.
The company plans to increase fiscal 2026 capital expenditures to approximately $20 billion, primarily to support HBM and 1-gamma supply capabilities.
DRAM and NAND bit shipment growth is expected to be around 20% in 2026, constrained by supply limitations.

Despite strong performance, Micron expressed disappointment in not being able to meet demand from all customers, indicating a supply-constrained environment.
The company is facing challenges with clean room space and longer lead times for new facilities, which may limit its ability to scale production quickly.
Competitive pressures from other semiconductor manufacturers are noted, especially as they ramp up their HBM capabilities.
Potential impacts from new tariffs were acknowledged but not included in the current guidance.

Micron is negotiating multiyear contracts with key customers, which include stronger commitments compared to previous agreements.
Discussions around capital expenditures suggest a disciplined approach, with a focus on maximizing output from existing facilities while planning for future expansions.
The company is seeing strong demand for enterprise SSDs, driven by AI applications, and is engaging in long-term agreements with customers in this segment.
Management indicated that while they are optimistic about gross margins, future improvements may be more gradual due to high current levels and the impact of new fab costs.
Micron's leadership in HBM technology is reinforced, with expectations of strong year-over-year growth in HBM revenue despite competitive pressures.

MU — Micron Technology, Inc.