Micron Q4 Net Profit Surges Over 10-Fold YoY as Gross Margin Beats Market Expectations at 86.8%; Shares Reverse Losses to Rise 2% After Hours

TradingKey - On September 30 ET, after Micron Technology (MU) reported its fourth-quarter fiscal 2026 results after US market hours, its stock price reversed from a loss to gain 2%.

Micron's Q4 revenue reached $54.229 billion, up approximately 30.81% quarter-over-quarter from $41.456 billion in the previous quarter and up approximately 379.27% year-over-year from $11.315 billion in the same period last year, exceeding market expectations of $51.5 billion by about 5.30%.

The company also reported that for the full fiscal year 2026, revenue was $133.190 billion, GAAP net income was $84.970 billion, non-GAAP net income was $86.760 billion, and full-year operating cash flow was $89.680 billion.

[Micron Stock Price Chart, Source: TradingView]

Segment Results: Data Center Business Is the Biggest Highlight This Quarter

By segment, revenue from the Cloud Memory business was $16.283 billion, up approximately 258.42% from $4.543 billion in the same period last year. Gross margin was 83%, flat sequentially, and operating margin was 76%.

Revenue from the Core Data Center business reached $18.002 billion, up approximately 1,041.53% from $1.577 billion in the same period last year. Gross margin was 90%, up 3 percentage points sequentially, and operating margin was 85%.

[Source: Micron Q4 Earnings Report]

Revenue from the Mobile and Client business reached $13.114 billion, up approximately 248.78% from $3.760 billion in the same period last year. Gross margin was 90%, up 3 percentage points sequentially, and operating margin was 88%.

Revenue from the Automotive and Embedded business reached $6.824 billion, up approximately 375.87% from $1.434 billion in the same period last year. Gross margin was 84%, up 5 percentage points sequentially, and operating margin was 79%.

Profits: Q4 Net Profit Surges Over 10-Fold YoY, Gross Margin Beats Market Expectations at 86.8%

In terms of profit, Micron's GAAP net income was $37.701 billion, up 1077.79% year-over-year, with diluted earnings per share of $32.87; non-GAAP net income was $38.398 billion, with adjusted diluted earnings per share of $33.42, which beat market expectations of $31.82 by approximately 5.03%.

GAAP gross margin was 86.8%, up 2.2 percentage points from 84.6% in the previous quarter and up 42.1 percentage points from 44.7% in the same period last year; non-GAAP gross margin was 87.0%, up 2.1 percentage points from 84.9% in the previous quarter and up 41.3 percentage points from 45.7% in the same period last year. GAAP and non-GAAP operating margins were 80.7% and 82.3%, respectively, up 48.4 and 47.3 percentage points from the same period last year.

The company had previously expected overall gross margin for the fourth quarter to be around 86%, and the actual gross margin for this quarter was above that level.

Micron First-Quarter FY2027 Guidance

Regarding guidance, Micron expects revenue for the first quarter of fiscal 2027 to range from $60.00 billion to $63.00 billion, with a midpoint of $61.50 billion.

GAAP gross margin is approximately 85.95%, and non-GAAP gross margin is approximately 86.25%; GAAP operating expenses are approximately $2.31 billion, and non-GAAP operating expenses are approximately $2.06 billion.

GAAP diluted EPS guidance is $37.84 ± $1.00, and non-GAAP diluted EPS guidance is $38.15 ± $1.00. The midpoint of the non-GAAP EPS guidance is approximately 6.21% higher than market expectations of $35.92, and the midpoint of the revenue guidance is approximately 6.16% higher than market expectations of $57.93 billion.

Sanjay Mehrotra, Chairman and CEO of Micron, stated that the company delivered record fiscal 2026 results and expects fiscal 2027 to be even stronger. He noted that artificial intelligence is becoming "Super Intelligence" (SI), and memory will enhance this intelligence as well as the competitiveness of customer platforms; the company is increasing investments in technology, products, and manufacturing to drive SI development together with customers, while strategic customer agreements have also reinforced confidence in the sustainability of its financial performance.