Micron Technology Reports 56% Revenue Growth to $13.6 Billion in Q1

Written by Emily J. Thompson, Senior Investment Analyst

MU+7.98%

Source: Fool

Updated: 1h ago

0mins

Source: Fool

Significant Revenue Growth: Micron Technology reported a remarkable 56% year-over-year increase in quarterly revenue to $13.6 billion in its fiscal Q1 2026 earnings report, underscoring the company's robust performance in the semiconductor market and solidifying its market position.
Earnings Per Share Surge: The company achieved earnings per share of $4.60, reflecting a 175% increase from the previous year, which not only highlights significant profitability improvements but also indicates successful cost control and operational efficiency by management.
Cash Flow Improvement: Micron's cash profit exceeded $3 billion in the first quarter of the new fiscal year, marking a substantial improvement from the barely positive cash flow reported in Q1 2025, thereby enhancing the company's financial stability and investment capacity.
Optimistic Future Outlook: Analysts predict continued DRAM price increases throughout 2026, with Q2 revenue expectations set at $18.7 billion and gross margins around 67%, providing strong support for the company's future growth prospects.

$308.18+Infinity%1D

Analyst Views on MU

Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 228.21 USD with a low forecast of 170.00 USD and a high forecast of 325.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

29 Analyst Rating

26 Buy

3 Hold

0 Sell

Strong Buy

Current: 285.410

Low

170.00

Averages

228.21

High

325.00

Current: 285.410

Low

170.00

Averages

228.21

High

325.00

Morgan Stanley

Overweight

maintain

$338 -> $350

2025-12-18

Reason

Morgan Stanley

Price Target

$338 -> $350

2025-12-18

maintain

Overweight

Reason

Morgan Stanley raised the firm's price target on Micron to $350 from $338 and keeps an Overweight rating on the shares. The firm, which notes that Micron guided to $8.19 of EPS versus consensus at $4.78, had expected upside to its estimate, which was 10% above consensus, but adds "clearly we underestimated" as very strong DDR5 pricing has less of an HBM offset than the firm might have expected. "As long as the AI music plays, we believe this is going to keep happening," the analyst tells investors.

UBS

Buy

maintain

$295 -> $300

2025-12-18

Reason

UBS

Price Target

$295 -> $300

2025-12-18

maintain

Buy

Reason

UBS raised the firm's price target on Micron to $300 from $295 and keeps a Buy rating on the shares. Micron delivered results and guidance well above even bullish expectations, with management signaling continued gross margin expansion through 2026 and supporting upside to earnings estimates approaching $40 per share, the analyst tells investors in a research note. Despite peak-cycle concerns, memory's strategic importance in an AI-driven world suggests a more durable cycle than past consumer-led upswings, UBS says.

Rosenblatt

Buy

maintain

$300 -> $500

2025-12-18

Reason

Rosenblatt

Price Target

$300 -> $500

2025-12-18

maintain

Buy

Reason

Rosenblatt raised the firm's price target on Micron to $500 from $300 and keeps a Buy rating on the shares. The company reported November quarter results and February quarter guidance well above consensus, the analyst tells investors in a research note. The firm says newly negotiated DRAM and NAND flash prices, combined with continued cost declines, led to Micron guiding its February quarter gross margin to a record high of 68% as demand is expected to outstrip supply into 2027.

Goldman Sachs

James Schneider

Neutral

maintain

$205 -> $235

2025-12-18

Reason

Goldman Sachs

James Schneider

Price Target

$205 -> $235

2025-12-18

maintain

Neutral

Reason

Goldman Sachs analyst James Schneider raised the firm's price target on Micron to $235 from $205 and keeps a Neutral rating on the shares. The stock should to rise after a strong quarter and guidance that significantly exceeded Street expectations, even with high investor anticipation, the analyst says in a research note. Rising contract prices across HBM, DRAM, and NAND-driven by tight supply and robust demand, along with constrained cleanroom capacity limiting 2026 bit growth to about 20% and continued HBM roadmap execution, support a constructive outlook for Micron, Goldman says.

About MU

Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.