Micron (MU) Q4 FY2026: Record $54.2B Revenue Beats as Stock Slips on Bond Yields, Not Earnings

$MUWhat Happened

Micron’s fiscal Q4 2026 revenue came in at a record $54.23 billion, up 379% year-over-year and 31% sequentially, beating the roughly $51.2 billion analysts expected by about $3 billion. Non-GAAP earnings per share of $33.42 topped consensus estimates clustered around $31.5-32.00, a beat of roughly 5-6%. GAAP net income hit $37.70 billion for the quarter, with gross margin at 87.0% non-GAAP. For the full fiscal year, revenue totaled $133.19 billion against $37.38 billion a year earlier, with non-GAAP EPS of $75.52.

The breakdown: DRAM revenue of $39.8 billion (73% of the total) rose 343% year-over-year as prices climbed in the high-teens percentage range, while NAND revenue of $14.1 billion jumped 526% on roughly 30% price increases. Data center revenue rose 56% sequentially to $18.0 billion at a 90% gross margin. CEO Sanjay Mehrotra said the company does “not have line of sight to when supply and demand will return to balance,” and framed the AI buildout in blunt terms: “AI is becoming Super Intelligence (SI), and memory enhances this intelligence and the competitiveness of our customers’ platforms.” Micron has now signed 26 Strategic Customer Agreements covering more than 35% of revenue through 2030, representing roughly $32 billion in customer commitments.

Guidance for fiscal Q1 2027 came in well above where analysts had modeled: revenue of $61.5 billion plus or minus $1.5 billion against a Street estimate closer to $57 billion, and non-GAAP EPS of $38.15 plus or minus $1.00. CFO Mark Murphy called the roughly 86% gross margin guide “the floor for fiscal 2027,” with expansion expected afterward “with a more moderate rate of price increases” — and specifically flagged that 2027 HBM (high-bandwidth memory) supply agreements carry “significant price increases year-over-year, narrowing the gross margin gap with conventional DRAM.”

Why Did the Stock Fall on a Beat?

Micron shares actually spiked as much as 1.7% in after-hours trading immediately following the Wednesday release, before giving back the gain during the earnings call to close extended hours up a modest 0.37%. In Thursday’s regular session, MU is down roughly 2.45% — but coverage is broadly attributing that move to a market-wide selloff as the 10-year Treasury yield climbed to around 5.3%, its highest level since 2002, rather than to anything in Micron’s own report. Context matters here too: the stock had already run up roughly 537% year-over-year and 44% off its July lows heading into the print, leaving less room for a “good but largely priced-in” beat to push shares meaningfully higher. Morningstar, notably, cut its fair-value estimate from $850 to $700 on a thesis that the memory cycle peaks in 2028 before a 2029 downturn — a reminder that not every voice on the stock is uniformly bullish even after a record quarter.

Analyst Reaction

Rosenblatt’s Kevin Cassidy cited supply constraints and a projected $100 billion-plus in fiscal 2027 free cash flow against more than $50 billion in planned capex. Morgan Stanley flagged that post-earnings estimate hikes across the Street “may not match the magnitude seen in recent quarters,” while still calling near-term demand “still very good.” Goldman remains the most cautious name among major covering firms, holding its target at $1,100.

Why It Matters

Micron’s results are the clearest read yet on just how tight AI-driven memory supply has become: record pricing, record margins, and guidance that outran even bullish Street estimates. That the stock dipped anyway underscores how much good news was already baked into a name up over 500% in a year — and how sensitive the entire market, memory stocks included, has become to the bond market’s next move. For the original estimates this quarter beat, see our Micron (MU) earnings preview. For more on the AI buildout driving memory demand, see our NVIDIA (NVDA) stock fact sheet and our market preview on the broader tech and energy setup.