Micron ($MU) Q4 Blowout: Breaking the 86% Margin Barrier! #EarningsSeason

With Micron Technology Inc reporting its FY2026 Q4 results, the structural bull case for the memory giant has never looked stronger.

• Bullish or Bearish: I am firmly Bullish. Micron soundly beat LSEG consensus by posting an adjusted EPS of $33.42 (vs. $31.61 expected) and revenue of $54.23 billion. Management's blockbuster Q1 FY2027 revenue guidance of $61.5 billion signals massive near-term growth.

• The 86% Gross Margin Barrier: Micron absolutely cleared it. Driven by exceptional pricing power and intense AI server demand, the company posted an unprecedented 87.0% adjusted gross margin. While Q1 FY2027 margin guidance dips slightly to 86.25% due to temporary product mix and incentive costs, it remains at near-historical highs.

• The Memory Super Cycle Runway: This cycle has significant room to run. Micron has successfully shifted away from volatile spot pricing by signing 26 Strategic Customer Agreements (SCAs). These agreements lock in over 35% of estimated revenue through 2030, backed by $32 billion in customer financial commitments. AI data center supply shortages are expected to persist well into 2027 and 2028.

My Position Strategy: I am holding my core long positions and looking to accumulate more on any short-term macro consolidations.