Micron Technology (MU US): Expectations Shift From Profit Spike to Sustainability

Micron reported FY26Q4 results on Sep 30. FY26Q4 revenue came in at USD54.2bn, above VA consensus of USD50.9bn, while non-GAAP EPS of USD33.42 also exceeded consensus of USD31.57. For FY27Q1, Micron guided to revenue of USD60.0-63.0bn and non-GAAP EPS of USD37.15-39.15, both ahead of consensus. Non-GAAP gross margin is guided at 86.25%, with margins expected to improve thereafter on lower incentive compensation, despite more modest DRAM and NAND price increases. Micron has now signed 26 SCAs, up from 16 last quarter, covering around 35% of revenue through 2030, while 75% of FY27 supply is already committed. Customer prepayments increased to around USD32bn from USD22bn last quarter, with RPO reaching around USD150bn, and the company plans a long-term target of returning 100% of excess cash. With the strength of the upcycle now reflected in earnings, investor focus is shifting to the sustainability of pricing, margins and earnings. On the supply side, CXMT announced RMB34.9bn of investme