Historical financial report released: Micron memory supply exceeds demand, gross margin hits a new high of 68%, stock price rises for two consecutive days

Micron Technology’s latest financial report and outlook have exceeded market expectations across the board, igniting strong buying on Wall Street. Following a 10.21% surge in the previous trading day, Micron’s stock price rose another 5.69% today, reaching $263.80 per share, approaching the 52-week high of $268.38, with a two-day cumulative increase of over 16%.

Earnings and outlook double positive, Micron’s stock skyrocketed over 16% in two days

Micron announced its Q1 FY2026 financial results yesterday, with performance described as “historic” by multiple investment banks. Adjusted earnings per share (EPS) reached $4.78, and revenue hit $13.64 billion, both surpassing market expectations. Even more shocking to the market was the company’s extremely strong outlook for the second quarter, projecting revenue of approximately $18.7 billion and EPS as high as $8.42, nearly double what analysts initially expected.

During the earnings call, Micron management stated directly that demand exceeds supply across all product lines, including DRAM, HBM, and NAND, especially high-bandwidth memory (HBM) used in AI data centers. Not only is 2026 capacity fully sold out, but actual demand far exceeds supply, making short-term replenishment difficult.

Gross margin hit a record high of 68%, and full-year capital expenditure was raised

Benefiting from the continuous expansion of AI infrastructure and structural supply shortages in the industry, Micron’s gross margin in the first quarter soared to about 68%, setting a new record. Free cash flow margin approached 30%, significantly strengthening the balance sheet. In Q1, Micron repaid $2.7 billion in debt, repurchased $300 million worth of shares, and achieved record net cash and liquidity. Capital expenditures as a percentage of sales in Q2 decreased from less than 35% in Q1 to the mid-20% range, indicating improved capital efficiency.

Micron has revised its capital expenditure plan, raising the full-year CapEx from the original $18 billion to $20 billion, and simultaneously advancing capacity expansion in locations including Idaho, Japan, Singapore, India, and Virginia, USA. The company expects that the bit shipment volume in FY2026 will grow by approximately 20%, mainly driven by DRAM 1-gamma and NAND Gen9 process transitions.

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