Micron reports record Q1 as AI memory demand tightens supply

Transcript intelligence

What changed

Compared with the prior supplied quarter, Micron’s narrative shifted from an upbeat FY2026 setup to a record Q1 outcome with 56.8% gross margin, a $20 billion FY2026 CapEx plan, and a record Q2 outlook. HBM4, 1-gamma DRAM, G9 NAND, and LPDDR6 became more central to the growth plan, while capacity constraints and multiyear contract terms remain key watchpoints.

Guidance delta

Management raised the outlook, projecting record Q2 revenue of $18.7 billion and EPS of $8.42; the prior quarter had guided to about $12.5 billion of revenue and $3.75 EPS for Q1.

Key takeaways

• Q1 revenue reached $13.6 billion and gross margin was 56.8%, both records in the supplied analysis.
• Management linked demand strength to AI data centers, HBM, 1-gamma DRAM, G9 NAND, and enterprise SSDs.
• FY2026 CapEx is planned at $20 billion to expand HBM, DRAM, NAND, and fab capacity.
• The supplied analysis says current capacity is expected to meet only 50%–70% of demand.

Management priorities

• Ramp HBM4 and increase the HBM3E mix.
• Scale 1-gamma DRAM and roll out G9 NAND across data-center and client SSDs.
• Expand capacity through Idaho, New York, Japan, Singapore, and India projects.
• Develop LPDDR6 for smartphones and AI PCs.