Micron Technology Inc (MU)
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In the AI boom, memory-chip giant Micron earns more in one quarter than it previously did in its best full years: $41.5 billion in revenue, an 84.6 percent gross margin, $28.2 billion in net income (quarter ended May 28, 2026). Our value scanner for Joel Greenblatt's Magic Formula lights up — high return on capital, plenty of profit for the money. We read the annual report (10-K) and the quarterly reports (10-Q): they also say that memory prices have fallen by up to 50 percent a year within the past five years, that a single customer accounts for 17 percent of revenue — and that China partly banned Micron long ago. Not investment advice — just an attempt to tell a ruler from a roller coaster.
Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Quality & Screener
AI Rating
–Not yet rated — we only show a category once an SEC-backed file with at least two cited passages is available. How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 1.67 | – | 8,709 | 84.30 | 21.50 | 3,244 | 6,450 |
| 2025: Q1 | 1.41 | 98.00 | 8,053 | 38.30 | 19.70 | 3,942 | 736 |
| 2025: Q2 | 1.68 | 466.80 | 9,301 | 36.60 | 20.30 | 4,609 | 7,547 |
| 2025: Q3 | 2.85 | 260.90 | 11,315 | 46.00 | 28.30 | 5,730 | 11,388 |
| 2025: Q4 | 4.60 | 176.30 | 13,643 | 56.70 | 38.40 | 8,411 | 13,800 |
| 2026: Q1 | 12.10 | 758.10 | 23,860 | 196.30 | 57.80 | 11,903 | 6,514 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
One of only three manufacturers worldwide able to build HBM high-performance memory for AI accelerators at scale — and the only one headquartered in the United States. Per the quarterly report, AI demand exceeds industry supply; Micron is actively allocating the scarce goods (10-Q as of May 28, 2026).
$41.5 billion in revenue and $28.2 billion in net income in the quarter ended May 28, 2026 (an 84.6 percent gross margin), $45.7 billion in operating cash flow in nine months; $30.1 billion in cash/securities against $5.7 billion of debt, equity of $100.7 billion, an Altman Z around 11.7.
The boom is almost entirely a price boom (DRAM prices +260 percent, volume +20 percent year over year in the third quarter of FY 2026). The company's own five-year history in the 10-K cites price swings down to minus a good 50 percent a year, at times below manufacturing cost; in FY 2023 the gross margin was negative.
A market value of about $1,576 billion, a price-to-sales ratio around 27, price-to-book around 12.7, plus 761 percent in twelve months (data as of July 8, 2026): the price presumes that the best margins in industry history become the permanent state. An optically moderate P/E is, with cyclicals at the peak, the Magic Formula's classic trap.
Multi-year take-or-pay contracts with price floors and $22 billion in committed customer funds are a genuine structural break — but one customer stood for 17 percent of FY 2025 revenue, the top ten for half, trade receivables swelled to $26.9 billion in nine months, and China remains a double risk (the CAC ban, state-financed rivals CXMT/YMTC complete with patent suits).
Micron is the opposite of a warning-scanner case: a world-class cyclical in record form, with a fortress balance sheet, a genuine scarcity position in the AI boom and, for the first time, contractually secured volumes. But the stock is valued at about $1.58 trillion — 27 times revenue and 12.7 times book value — as if the best quarter in industry history were the new normal. Exactly that permanence is unproven: the boom sits almost entirely in prices whose own five-year history includes crashes by half. The value scanner did its math correctly — whether it did the math at the peak, only the cycle knows. Not investment advice.
- Micron reports in an offset fiscal year (ending late August/early September); "FY 2026" denotes the period from August 29, 2025 through September 3, 2026, and the nine-month figures end on May 28, 2026. Every period in the text is explicitly dated.
- The $47.3 billion of FY 2026 net income is a nine-month figure, not a full-year figure; the comparison with the prior full years in the roller-coaster chart is labeled accordingly.
- Price and valuation figures are dated July 8, 2026 (about $1,214 per share, about $1,576 billion in market value); analyses are evergreen, daily prices are not a buy argument.
- Analyst estimates (about $73 and $149 in earnings per share for the current and the next fiscal year) are consensus forecasts of 37 professionals, not facts — with cyclicals, estimates have historically been revised hardest at turning points.
About the Company
Micron Technology, Inc. entwickelt, fertigt und vertreibt Speicher- und Storage-Produkte in den USA, Taiwan, Japan, Festlandchina, Hongkong, Europa und international.
| IPO Year | 1984 |
|---|
Chart
Data as of: July 2, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.