AI-driven demand fuels margin expansion and strong cash generation
Micron Technology (MU) delivered a standout start to fiscal 2026, reporting record revenue and sharply higher profitability as surging demand for memory and storage solutions—particularly tied to artificial intelligence—continued to drive growth. For the first quarter ended November 27, 2025, Micron posted revenue of $13.64 billion, up significantly from $11.32 billion in the prior quarter and $8.71 billion in the same period last year.
The earnings performance reflected both strong pricing and operating leverage. Micron reported GAAP net income of $5.24 billion, or $4.60 per diluted share, while non-GAAP net income reached $5.48 billion, or $4.78 per share. Operating cash flow climbed to $8.41 billion, compared with $5.73 billion in the previous quarter and $3.24 billion a year earlier, underscoring the company’s accelerating profitability and cash generation.
Chief Executive Officer Sanjay Mehrotra said the quarter marked a milestone across the business. He highlighted record revenue and significant margin expansion not only at the company level, but also across all business units. Mehrotra added that Micron’s outlook for the second quarter points to further records in revenue, gross margin, earnings per share, and free cash flow, with performance expected to strengthen throughout fiscal 2026.
Micron’s results come as AI workloads increasingly require high-performance memory and storage, positioning the company as a critical supplier in the rapidly expanding AI ecosystem. Mehrotra emphasized that Micron’s technology leadership, differentiated product portfolio, and disciplined execution are enabling the company to meet growing customer demand while continuing to invest for the future.
During the quarter, Micron invested $4.5 billion in net capital expenditures and generated adjusted free cash flow of $3.9 billion. The company ended the quarter with a strong liquidity position, holding $12.0 billion in cash, marketable investments, and restricted cash.
Reflecting confidence in its financial position, Micron’s board declared a quarterly dividend of $0.115 per share, payable January 14, 2026. With robust demand trends and improving margins, Micron appears well positioned to sustain momentum as fiscal 2026 unfolds.
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