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Micron Shares Waver Despite Strong Q4 Results, High Q1 Guidance
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CNBC TV18•01-10-2026, 05:26
Micron Shares Waver Despite Strong Q4 Results, High Q1 Guidance
- •Micron Technology Inc. reported strong Q4 FY26 results with revenue of $54.23 billion and EPS of $33.42, both exceeding estimates.
- •The company issued higher-than-expected Q1 guidance, projecting revenue of $61.5 billion and EPS of $38.15.
- •Despite positive financials, Micron's stock wavered due to a warning about a marginal decline in gross margins, attributed to increased worker pay.
- •DRAM revenue surged 343% year-over-year to $39.8 billion, accounting for 73% of overall sales, fueled by AI demand.
- •Micron, the sole US-based HBM manufacturer, is investing $250 billion in new campuses in New York and Idaho to boost HBM production.
Key Questions Answered
For the fourth quarter of fiscal year 2026, Micron reported revenue of $54.23 billion, surpassing the estimated $51.07 billion. Additionally, the company's Earnings per Share reached $33.42, which was higher than the anticipated $31.61 figure.
Micron's stock wavered between gains and losses because the company warned of a marginal decline in gross margins, driven largely by increased worker pay and incentive compensation decisions confirmed by CFO Mark Murphy.
Micron is investing $250 billion to build two new campuses for manufacturing high-bandwidth memory chips, located in New York and Idaho, with both scheduled to come online next year.
