"Micron's fiscal Q1 2026 results, reported December 17, 2025, were exceptional. Revenue came in at $13.64 billion, beating estimates by 5.91% and growing 56.65% year over year. Non-GAAP EPS of $4.78 exceeded the $3.9397 estimate by 21.33%. GAAP gross margin expanded from 38.4% a year ago to 56.0%, and free cash flow hit a company record of $3.91 billion."
"Two catalysts could prove our model too conservative: HBM capacity is sold out for all of 2026, and the company is the only American HBM supplier. Micron's world's first 256GB SOCAMM2 LPDRAM module, co-designed with Nvidia and using one-third the power of RDIMMs, is now shipping, cementing its position at the center of AI infrastructure."
"The market prices Micron on a forward EPS of $12.39 against a current P/E of around 38x. After applying the 1.145x 247Factor, the target lands at $316.13. Q2 FY2026 guidance is the most important number in this story. Management guided for revenue of $18.70 billion and non-GAAP EPS of $8.42, with non-GAAP gross margin guided to 68%."
Micron Technology traded at $400.77 after a 5.55% bounce from geopolitical-driven selling, representing a 340.89% gain over 12 months. Fiscal Q1 2026 results exceeded expectations with $13.64 billion revenue (56.65% YoY growth) and $4.78 non-GAAP EPS (21.33% above estimates). Gross margin expanded to 56.0% and free cash flow reached a record $3.91 billion. The 24/7 Wall St. price target of $316.13 reflects valuation concerns despite compelling fundamentals. Forward guidance projects $18.70 billion Q2 revenue and $8.42 non-GAAP EPS with 68% gross margin. Micron's exclusive position as the only American HBM supplier with sold-out 2026 capacity and innovative AI infrastructure products positions it centrally in the AI boom.
Read at 24/7 Wall St.
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