#earningsseason đ§ $MU Q4 FY2026: Gross Margin Just Cleared 86% â Here's What It Means Going Forward
#EarningsSeason
The actual results (not estimates):
Revenue: $54.23B, +379% YoY â beat the $50B ±$1B guide
Adjusted EPS: $33.42 â beat the $31 ±$1 guide
Gross margin: 87% â topped management's own ~86% target
FY2026 full year: $133.19B revenue (+256% YoY), $75.52 adjusted EPS (+811% YoY)
The forward signal â Q1 FY2027 guidance:
Revenue midpoint: $61.5B
EPS: $38.15
Gross margin: 86.25%
Answering the question: will margin hold above 86%? It already did in Q4, and guidance says it holds again next quarter. The durability case rests on two things: Strategic Customer Agreements locking in pricing, and Core Data Center (the highest-margin segment) running near 90% margin and growing fastest. This isn't a one-quarter spike â it's four consecutive quarters of margin expansion alongside revenue growth, which is the harder combination to fake.
How I'd think about positioning around this: going into the print, the setup was "beat priced in" â expectations were already sky-high after the Q3 guide. Post-earnings, the real tell isn't the beat itself (that happened) but whether Q1 FY27 guidance gets treated as confirmation of durability or as "as good as it gets." With MU around $935 â still ~25% off its 2026 high near $1,255 despite record numbers â the market hasn't fully re-rated the stock to the new guide yet.
Where do you land â is the supercycle story intact into FY2027, or does capacity catch up with demand first? đ
#MU #Micron #Semiconductors #AI #MemoryChips #Stocks
#EarningsSeason
The actual results (not estimates):
Revenue: $54.23B, +379% YoY â beat the $50B ±$1B guide
Adjusted EPS: $33.42 â beat the $31 ±$1 guide
Gross margin: 87% â topped management's own ~86% target
FY2026 full year: $133.19B revenue (+256% YoY), $75.52 adjusted EPS (+811% YoY)
The forward signal â Q1 FY2027 guidance:
Revenue midpoint: $61.5B
EPS: $38.15
Gross margin: 86.25%
Answering the question: will margin hold above 86%? It already did in Q4, and guidance says it holds again next quarter. The durability case rests on two things: Strategic Customer Agreements locking in pricing, and Core Data Center (the highest-margin segment) running near 90% margin and growing fastest. This isn't a one-quarter spike â it's four consecutive quarters of margin expansion alongside revenue growth, which is the harder combination to fake.
How I'd think about positioning around this: going into the print, the setup was "beat priced in" â expectations were already sky-high after the Q3 guide. Post-earnings, the real tell isn't the beat itself (that happened) but whether Q1 FY27 guidance gets treated as confirmation of durability or as "as good as it gets." With MU around $935 â still ~25% off its 2026 high near $1,255 despite record numbers â the market hasn't fully re-rated the stock to the new guide yet.
Where do you land â is the supercycle story intact into FY2027, or does capacity catch up with demand first? đ
#MU #Micron #Semiconductors #AI #MemoryChips #Stocks