Memory chips maker Micron (NYSE: MU) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 196% year on year to $23.86 billion. On top of that, next quarter’s revenue guidance ($33.5 billion at the midpoint) was surprisingly good and 41.4% above what analysts were expecting. Its non-GAAP profit of $12.20 per share was 40.8% above analysts’ consensus estimates.
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Micron (MU) Q1 CY2026 Highlights:
- Revenue: $23.86 billion vs analyst estimates of $19.87 billion (196% year-on-year growth, 20.1% beat)
- Adjusted EPS: $12.20 vs analyst estimates of $8.66 (40.8% beat)
- Adjusted Operating Income: $16.46 billion vs analyst estimates of $11.74 billion (69% margin, 40.1% beat)
- Revenue Guidance for Q2 CY2026 is $33.5 billion at the midpoint, above analyst estimates of $23.69 billion
- Adjusted EPS guidance for Q2 CY2026 is $19.15 at the midpoint, above analyst estimates of $10.71
- Operating Margin: 67.6%, up from 22% in the same quarter last year
- Free Cash Flow was $6.90 billion, up from -$113 million in the same quarter last year
- Inventory Days Outstanding: 123, down from 125 in the previous quarter
- Market Capitalization: $519.6 billion
“Micron set new records across revenue, gross margin, EPS, and free cash flow in fiscal Q2, driven by a strong demand environment, tight industry supply, and our strong execution, and we expect significant records again in fiscal Q3,” said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology.
Company Overview
Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE: MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Micron’s sales grew at an exceptional 19.9% compounded annual growth rate over the last five years. Its growth surpassed the average semiconductor company and shows its offerings resonate with customers, a great starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions (which can sometimes offer opportune times to buy).
Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore's Law) could make yesterday's hit product obsolete today. Micron’s annualized revenue growth of 78.2% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
This quarter, Micron reported magnificent year-on-year revenue growth of 196%, and its $23.86 billion of revenue beat Wall Street’s estimates by 20.1%. Beyond the beat, this marks 10 straight quarters of growth, showing that the current upcycle has had a good run - a typical upcycle usually lasts 8-10 quarters. Company management is currently guiding for a 260% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 84.5% over the next 12 months, an improvement versus the last two years. This projection is eye-popping for a company of its scale and indicates its newer products and services will fuel better top-line performance.
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Product Demand & Outstanding Inventory
Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’ capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.
This quarter, Micron’s DIO came in at 123, which is 26 days below its five-year average. At the moment, these numbers show no indication of an excessive inventory buildup.
Key Takeaways from Micron’s Q1 Results
It was good to see Micron beat analysts’ EPS expectations this quarter. We were also excited its adjusted operating income outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock remained flat at $462.84 immediately after reporting.
Micron had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
