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Micron Posts Strong Results as Margin Concerns Jolt Shares
Micron makes memory chips used in computers and artificial-intelligence systems.
The company reported much higher sales and profit than analysts expected.
It also predicted that sales and profit would be even higher in the next quarter.
Despite these strong numbers, its stock moved up and down after trading hours.
Investors were concerned that the company’s profit margin may decline slightly.
Micron said higher worker pay, including incentive compensation, is one reason for the pressure.
Its DRAM memory-chip sales grew sharply and made up most of its revenue.
Micron is also building two new campuses to produce high-bandwidth memory for future products.
Micron Technology reported fourth-quarter fiscal 2026 revenue of $54.23 billion and EPS of $33.42, exceeding analyst estimates.
The company forecast ongoing-quarter revenue of $61.5 billion and EPS of $38.15, above consensus expectations.
Micron shares fluctuated in extended trading after the company warned of a marginal gross-margin decline linked partly to higher worker compensation.
DRAM revenue rose 343% year over year to $39.8 billion, representing 73% of total sales.
Micron plans to invest $250 billion in two HBM manufacturing campuses in New York and Idaho, which are expected to come online next year.
- Who
- Micron Technology, led by CEO Sanjay Mehrotra and CFO Mark Murphy.
- What
- The memory-chip manufacturer reported strong fiscal fourth-quarter results and issued above-expectation guidance for the ongoing quarter.
- Where
- Micron’s planned HBM campuses will be in New York and Idaho.
- When
- The results were reported Wednesday, September 30, for fiscal year 2026; the campuses are expected to come online next year.
- Why
- Strong demand connected to artificial-intelligence infrastructure drove results, while increased worker compensation raised concerns about gross margins.
Positive Earnings Case
Margin-Caution Case
Quarterly performance
Positive Earnings Case
Revenue and EPS beat analyst expectations, while guidance for the ongoing quarter was also higher than expected.
Margin-Caution Case
The stock still fluctuated in extended trading, indicating that strong results did not eliminate investor concerns.
Profit margins
Positive Earnings Case
The company’s strong demand and rapidly growing DRAM business support its sales outlook.
Margin-Caution Case
Micron warned that gross margins could decline marginally, partly because of increased worker pay and incentive compensation.
Future expansion
Positive Earnings Case
New HBM campuses and a strong product roadmap could support future growth in artificial-intelligence-related memory demand.
Margin-Caution Case
The planned $250 billion investment represents a major spending commitment, while the article does not provide details on its expected financial return.
Key facts
- Fourth-quarter revenue
- $54.23 billion, compared with the $51.07 billion analyst estimate
- Fourth-quarter EPS
- $33.42, compared with the $31.61 estimate
- Ongoing-quarter revenue guidance
- $61.5 billion, versus the $56.8 billion average analyst estimate
- Ongoing-quarter EPS guidance
- $38.15, versus the $36.02 estimate
- DRAM revenue
- $39.8 billion, up 343% year over year and equal to 73% of total sales
- Share performance
- Shares were up 240% year to date and 540% over the past 12 months
- Planned HBM investment
- $250 billion for two campuses in New York and Idaho
Sources
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