- Company name
- Micron Technology
- Sector
- Memory chips
- About
- Micron makes memory and storage chips: DRAM, including high-bandwidth memory (HBM) for AI accelerators, NAND flash and NOR flash. It sells them as chips, modules and solid-state drives to cloud companies, server and PC makers, phone makers and the car and industrial markets. It has four business units: Cloud Memory, Core Data Center, Mobile and Client, and Automotive and Embedded. Micron is one of three large DRAM makers in the world. It has fabs in the United States, Japan, Taiwan and Singapore, and it is building new DRAM fabs in Idaho and New York. Revenue was $133.19 billion in fiscal 2026, up from $37.38 billion in fiscal 2025, because AI data centers caused a shortage of memory. Its fiscal year ends on the Thursday nearest August 31, and fiscal 2026 had 53 weeks.
- Thesis
- The market prices Micron for a memory cycle that ends, even with record AI demand. In the past, memory prices rose for one or two years and then fell when the industry added supply. In Q4 fiscal 2026, Micron had a gross margin of 86.8% and EPS of $32.87. It guides Q1 fiscal 2027 revenue to $61.5 billion and GAAP EPS to $37.84. In 2026, it signed multi-year Strategic Customer Agreements with take-or-pay volumes and price floors, and customers paid $12.75 billion of deposits. Micron says that margins at the price floors are above its peak quarterly margins in any past cycle. The market doubts that these earnings last. It prices Micron as if memory prices will fall when new fabs at Micron, Samsung and SK hynix start from 2027, as in past cycles. The price already reflects most of the expected cycle, so the next results can move it either way. Three results can move it up. Revenue and margins can stay near the Q1 fiscal 2027 guidance through 2027. Customers can take their committed volumes under the agreements when spot prices fall. Industry supply, including Micron's first Idaho fab in mid-2027, can grow no faster than AI demand. Three results can move it down: a Q2 fiscal 2027 guidance below Q1, falling DRAM or HBM prices, or customers that try to renegotiate the agreements. The Q1 fiscal 2027 report, expected in mid-December 2026, gives the next test. The supply added in 2027 and 2028 shows how long the cycle lasts.
- Risks
- Memory prices move in cycles. Revenue rose from $37.38 billion in fiscal 2025 to $133.19 billion in fiscal 2026. When Micron, Samsung, SK hynix and Chinese makers add supply, prices can fall fast, and the stock can fall before results do.
Demand depends on AI data center spending by a small number of large customers. If they spend less, or buy fewer chips per server, demand for HBM and server DRAM can fall.
The Strategic Customer Agreements are new and untested in a downturn. Pricing for most of them moves inside minimum and maximum bands, and customers can try to renegotiate. Nearly all of the $12.75 billion of deposits are due back between 2029 and 2031.
Micron is building large new fabs in Idaho and New York. They need high capital spending, and they add supply in mid-2027, late 2028 and 2030. Delays raise costs, and new supply can lower prices.
Trade rules between the United States and China can limit sales or raise costs, and China is building its own memory makers.
- Balance sheet
- Cash: $73.5B
Debt: $5.2B
Net cash: $68.3B
Debt due within 12 months: $491M
Micron has much more cash than debt. At September 3, 2026, cash and equivalents were $38.36 billion, short-term investments were $5.07 billion and long-term marketable investments were $30.02 billion, for $73.45 billion; with restricted cash, the release gives $73.48 billion. Debt was $5.18 billion: $491 million current and $4.69 billion long-term, down from $14.58 billion a year earlier, after Micron bought back notes in 2026. Customer deposits of $12.90 billion under the Strategic Customer Agreements are a noncurrent liability, and nearly all of them are due back to customers between 2029 and 2031. Operating cash flow was $89.68 billion in fiscal 2026, and net capital spending was $27.37 billion. Interest income was $1.08 billion and interest expense was $106 million in fiscal 2026. Micron pays a quarterly dividend of $0.15 per share and bought back $650 million of stock in fiscal 2026.
As of 2026-09-03.
- Checkpoints
- Dec 16, 2026 (estimate): Q1 fiscal 2027 results: prices and margins. Pending. Watch: Revenue at or above $61.5 billion with a gross margin near 86% and a Q2 guidance at a similar level pass; a lower guidance or falling prices fail.
Jun 2027 (estimate): First DRAM output from the Idaho fab. Pending. Watch: First wafer output in mid-2027 with prices that stay high passes; a delay, or a fall in prices as the industry adds supply, fails.
- Recent events
- 2026-10-09: Micron filed its fiscal 2026 annual report. It said that it received $12.75 billion of customer deposits under Strategic Customer Agreements in 2026, and that nearly all of them are due back to customers between 2029 and 2031. Customers also gave $7 billion of letters of credit.
2026-09-30: Micron reported record Q4 fiscal 2026 results. Revenue was $54.23 billion, up from $11.32 billion a year earlier, and GAAP EPS was $32.87. Fiscal 2026 revenue was $133.19 billion and adjusted free cash flow was $62.31 billion. Micron guided Q1 fiscal 2027 revenue to $61.5 billion, plus or minus $1.5 billion, and GAAP EPS to $37.84, plus or minus $1.00.
2026-06-24: Micron reported Q3 fiscal 2026 results. Revenue was $41.46 billion, up from $23.86 billion in Q2, and GAAP EPS was $24.67. It announced its first multi-year Strategic Customer Agreements.
2026-03-31: Micron priced cash tender offers for all of six series of its senior notes due 2031 to 2035. It repaid $10.04 billion of debt in fiscal 2026, and long-term debt fell to $4.69 billion.
2026-03-18: Micron reported Q2 fiscal 2026 results with revenue of $23.86 billion.