In the quarter ended November 27, Micron reported revenue of $13.6 billion—a 57 percent year-over-year increase—driven entirely by its high-bandwidth memory (HBM) business. Management disclosed that all of its calendar-2026 HBM supply is already sold out, reflecting unprecedented demand from customers such as Nvidia, Broadcom and AMD. Non-GAAP earnings per share climbed 2.7 times from the year-ago period to $4.78, lifting the company’s gross margin to 45.6 percent and net margin to 28.2 percent, the highest level in over a decade.

All four of Micron’s core businesses posted double-digit revenue growth in Q1 FY26. The Cloud Memory unit led with over 60 percent year-over-year growth, while Core Data Center rose by 55 percent, Mobile & Client by 40 percent and Automotive & Embedded by 22 percent. Operating margins expanded across every segment, with Cloud Memory delivering a record 52 percent operating margin and Automotive & Embedded achieving a 36 percent margin despite being the smallest contributor.

Analysts expect Micron’s non-GAAP earnings to surge 288 percent this fiscal year to $32.14 per share, driven by higher HBM volumes and favorable pricing agreements. For Q2 FY26, management guided to revenue between $18.3 billion and $19.1 billion, implying more than a twofold year-over-year increase even at the low end. Free cash flow is projected to exceed $10 billion for the full year, supporting continued share repurchases and a 0.2 percent dividend yield.

Despite its rapid growth, Micron trades at under 10 times forward earnings—a steep discount to peer DRAM and memory suppliers with forward P/Es in the 30–75 range. At current consensus estimates, the stock would need to quadruple just to match peers’ multiples. Given a total addressable HBM market forecast to more than double from $35 billion in 2025 to $100 billion by 2028, investors maintaining a long-term view stand to benefit from sustained secular tailwinds in AI-driven memory demand.