Micron Technology Inc (NASDAQ:MU) on Wednesday posted stronger-than-expected fiscal first-quarter results and forecast robust growth for the next quarter, sending shares up 5.4% in after-hours trading.
The memory chip maker reported revenue of $13.64 billion for Q1’26, beating analysts’ estimates of $12.95 billion. Adjusted earnings per share came in at $4.78, well above the $3.95 expected.
Micron’s CEO, Sanjay Mehrotra, highlighted the company’s strong performance across all business units. “In fiscal Q1, Micron delivered record revenue and significant margin expansion at the company level and also in each of our business units,” he said.
The company’s guidance for Q2’26 points to another record quarter, with adjusted revenue expected between $18.3 billion and $19.1 billion, significantly above the $14.38 billion analysts had forecast.
Segment revenue in Q1 showed strength across Micron’s business lines: the Cloud Memory business unit generated $5.28 billion, Core Data Center $2.38 billion, Mobile & Client $4.26 billion, and Automotive & Embedded $1.72 billion. Gross margins ranged from 45% in Automotive & Embedded to 66% in Cloud Memory, while operating margins ranged from 36% to 55%.
Other key metrics included adjusted operating income of $6.42 billion, non-GAAP net income of $5.48 billion, and operating cash flow of $8.41 billion, beating Street estimates of $5.94 billion. The company generated $3.91 billion in adjusted free cash flow, while net capital expenditures totaled $4.51 billion.
Mehrotra added, “Our Q2 outlook reflects substantial records across revenue, gross margin, EPS and free cash flow, and we anticipate our business performance to continue strengthening through fiscal 2026.”