10-Q · June 24, 2026
Micron Technology, Inc. reported impressive Q3 2026 results, with revenue reaching $41.46 billion and an EPS of $25.11, significantly exceeding analysts' estimates. The company continues to benefit from robust demand in…
Earnings analysis · 10-K
MU earnings analysis
Filed October 9, 2026 · Our reading of the company's report
The latest report
Micron’s 2026 10-K shows an exceptional cyclical and AI-driven inflection, with revenue rising to $133.188 billion, diluted EPS reaching $74.33, and approximately 74.6% operating margins. Growth was broad across all…
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Micron’s 2026 10-K shows an exceptional cyclical and AI-driven inflection, with revenue rising to $133.188 billion, diluted EPS reaching $74.33, and approximately 74.6% operating margins. Growth was broad across all four business units, led by cloud memory and core data center, while operating cash flow reached $89.675 billion and debt fell sharply. The outlook is strategically attractive but increasingly dependent on sustained AI and memory demand, substantial capacity investment, favorable tax incentives, and resolution of newly material intellectual-property and foreign-exchange risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $74.33
What stood out
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Exceptional revenue and EPS acceleration
Revenue increased to $133.188 billion in 2026 from $37.378 billion in 2025 and $25.111 billion in 2024. Diluted EPS rose to $74.33 from $7.59 and $0.70, respectively, indicating a sharp earnings inflection.
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Major margin expansion
Gross margin was $107.504 billion, equivalent to approximately 80.7% of revenue, versus $14.873 billion in 2025; operating income reached $99.340 billion, or approximately 74.6% of revenue, versus $9.770 billion.
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Broad-based segment growth
All four reportable businesses grew materially: CMBU revenue increased to $43.085 billion, CDBU to $37.592 billion, MCBU to $36.601 billion, and AEBU to $15.886 billion in 2026.
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Positioned for AI and data center demand
Micron describes itself as a global leader in semiconductor memory and storage, with a portfolio spanning DRAM, NAND, and NOR for AI and compute-intensive workloads. CMBU specifically targets hyperscale cloud customers and HBM for all data-center customers.
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Cash generation scaled rapidly
Operating cash flow increased to $89.675 billion from $17.525 billion in 2025 and $8.507 billion in 2024, despite $30.712 billion of property, plant, and equipment expenditures in 2026.
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Aggressive deleveraging
Debt was substantially reduced: Micron repaid $10.043 billion of debt in 2026, including $9.255 billion of cash prepayments, reducing total debt carrying value to $5.179 billion from $14.577 billion.
What to watch
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New German NAND injunction
On October 6, 2026, a German court ordered Micron to cease offering, marketing, importing, or possessing certain accused 3D NAND products in Germany and to stop certain deliveries abroad. The affected lawsuits cover products accounting for substantially all of Micron’s revenue, although Micron has appealed and the Netlist litigation was settled on October 5, 2026.
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Foreign-exchange exposure expanded
Currency exposure increased materially: Micron estimates that a hypothetical 10% adverse exchange-rate move would cause approximately $2.91 billion of losses as of September 3, 2026, versus $572 million a year earlier. Hedging reduces but does not fully eliminate this exposure.
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High capacity-investment commitments
Expansion requires substantial ongoing investment. 2026 property, plant, and equipment expenditures were $30.712 billion versus $15.857 billion in 2025, while noncancelable purchase obligations with terms exceeding one year totaled approximately $10.8 billion as of September 3, 2026.
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Reliance on tax incentives
The company’s favorable tax profile is materially dependent on Singapore incentives: those incentives reduced the 2026 tax provision by $11.22 billion, partly offset by $9.03 billion of qualified domestic minimum top-up taxes, for a net benefit of $2.21 billion.
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Large contractual obligations
Strategic customer agreements created approximately $134 billion of remaining performance obligations, including $13 billion already recorded as contract liabilities; nearly all customer deposits are scheduled for repayment between 2029 and 2031.
Management's outlook
The 10-K does not provide quantitative annual or quarterly earnings guidance; outlook was provided separately in the Q4 earnings release and call.
Earlier filings 4
10-Q · March 19, 2026
Micron Technology reported robust Q2 FY2026 results, significantly exceeding revenue and EPS expectations. Revenue reached $23.86 billion, reflecting a 75% increase quarter-over-quarter and a remarkable 196%…
10-Q · December 18, 2025
Micron Technology's Q1 2026 performance demonstrated substantial growth driven by robust demand for both DRAM and NAND products, leading to a significant year-over-year revenue increase of 57% and a remarkable EPS of…
10-K · October 3, 2025
Micron Technology saw a substantial growth in revenue and profitability for the year ended August 28, 2025, driven primarily by increased demand for DRAM and NAND products, particularly in AI-driven markets. With total…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.