Executive Summary & TL;DR
- Headline Metrics: FQ4-26 Revenue of $54.23B (+30.8% QoQ, +379.3% YoY) vs consensus of $51.07B. Non-GAAP Diluted EPS of $33.42 (+33.1% QoQ) vs consensus of $31.35; GAAP Diluted EPS of $32.87.
- Beat / Miss Callout: BEAT on both Revenue (by ~$3.16B) and Non-GAAP EPS (by +$2.07).
- Guidance Direction: RAISED. FQ1-27 revenue guidance set to $61.50B ± $1.50B (vs $54.23B FQ4 actual) and Non-GAAP EPS to $38.15 ± $1.00.
- Stance: Constructive — Record demand for HBM4 and high-density server DDR5/SSDs continues to compress supply, granting Micron unprecedented pricing power and high margin profiles, complemented by multi-year Strategic Customer Agreements (SCAs).
- Key Takeaways:
- Hyper-growth in AI infrastructure accelerated revenue across all four business units, led by CDBU (+56.2% QoQ) and CMBU (+18.3% QoQ).
- FQ4 gross margins expanded to 87.0% non-GAAP (86.8% GAAP), driven by DRAM/NAND ASP increases and product mix shifts to high-margin HBM4 and 256GB/512GB DDR5 modules.
- Strategic Customer Agreements generated
$22B in customer deposits ($18B cash inflow), boosting cash and marketable investments to $73.48B. - FQ4 results included a 14-week quarter (53-week fiscal year effect), adding a ~7.7% structural calendar tailwind that normalizes in FQ1-27.
- Top Watch Items: Sequential growth normalization in FQ1-27 (13-week quarter vs 14-week FQ4), sustainability of 86%+ gross margins, execution on HBM4E/1-gamma DRAM node ramps, and fulfillment of deposit-backed customer allocation commitments.