- Record Revenue and Growth: Fiscal Q1 revenue reached $13.6 billion, up 21% sequentially and 57% year-over-year, with DRAM revenue at $10.8 billion (up 69% YoY) and NAND at $2.7 billion (up 22% YoY).
- Margin Expansion: Consolidated gross margin hit 56.8% in Q1, a 11-point sequential rise, and guidance for Q2 at 68% (±100 bps) reflects strong pricing and cost control.
- HBM Market Leadership: Secured full 2026 HBM supply agreements, including HBM4, with TAM projected to grow from $35B in 2025 to $100B by 2028—two years earlier than prior forecasts.
- CapEx Increase: Fiscal 2026 capital spending raised to $20 billion (+$2B) to boost HBM and 1-gamma production, accelerating capacity to meet demand in a tight supply environment.
Strong Demand and Supply Constraints Drive Performance
The company's strong execution across end markets and products in a tight supply environment drove its financial performance. Total company revenue, DRAM and NAND revenue, as well as HBM and data center revenue, reached new records. The company expects these tight market conditions to persist beyond calendar 2026, driven by sustained and strong industry demand and supply constraints.
HBM Business: A Key Growth Driver
Micron Technology has completed agreements on price and volume for its entire calendar 2026 HBM supply, including its industry-leading HBM4. The company forecasts an HBM total addressable market (TAM) compound annual growth rate (CAGR) of approximately 40% through calendar 2028, from around $35 billion in 2025 to $100 billion in 2028. This $100 billion HBM TAM milestone is now projected to arrive two years earlier than previously expected.
Valuation and Outlook
With a P/E Ratio of 25.12 and an EV/EBITDA of 14.82, the market appears to have priced in a significant portion of Micron Technology's growth prospects. However, with analysts estimating revenue growth of 90.1% next year, there may be further upside potential. The company's strong competitive position, particularly with its HBM4 product, and its plans to increase supply capability and invest in new clean room space, are expected to drive continued growth.
Guidance and Future Expectations
Micron Technology expects revenue to be a record $18.7 billion, plus or minus $400 million, in fiscal Q2, with a gross margin of 68%, plus or minus 100 basis points. EPS is expected to be a record $8.42 per share, plus or minus $0.20. The company is focused on managing the mix of HBM and non-HBM business, with both having strong profitability, and is negotiating long-term customer contracts with specific commitments.