Micron Technology(US:MU)2025-12-17 23:47Financial Performance - Total revenue for Q1 2026 was $13,643 million, a 21% increase compared to Q4 2025 and a 57% increase compared to Q1 2025, driven by higher sales of both DRAM and NAND products [106][108]. - Gross margin for Q1 2026 improved to 56% from 45% in Q4 2025 and 38% in Q1 2025, due to increased average selling prices and manufacturing cost reductions [109][110]. - Operating income for Q1 2026 was $6,136 million, representing 45% of total revenue, compared to 32% in Q4 2025 and 25% in Q1 2025 [106]. - CMBU revenue for Q1 2026 was $5,284 million, accounting for 39% of total revenue, with a 16% increase from Q4 2025 driven by higher DRAM average selling prices and bit shipments [112][115]. - CDBU revenue increased by 51% in Q1 2026 compared to Q4 2025, primarily due to increases in bit shipments and average selling prices for both data center DRAM and NAND [115]. - NAND revenue increased in Q1 2026 due to significant improvements in selling prices and higher bit shipments, reflecting tight industry supply and favorable product mix [104]. Sales and Revenue Breakdown - DRAM sales increased by 20% in Q1 2026, primarily due to a 20% increase in average selling prices, while NAND sales increased by 22% due to mid-teens percentage increase in average selling prices and higher bit shipments [111]. - CDBU operating income increased due to higher bit shipments and average selling prices, with a partial offset from higher R&D expenses [120]. - MCBU operating income rose primarily from increases in DRAM and NAND average selling prices, partially offset by lower bit shipments [120]. - AEBU operating income increased due to higher DRAM bit shipments and average selling prices, despite decreases in NAND average selling prices [120]. Research and Development - Research and development expenses for Q1 2026 increased by 12% compared to Q4 2025 and 32% compared to Q1 2025, primarily due to higher volumes of development wafers and increased employee compensation [117]. - The company continues to invest significantly in proprietary product and process technology to enhance bit density and reduce manufacturing costs [97]. Tax and Cash Flow - The effective tax rate for Q1 2026 was 13.7%, influenced by the implementation of the 15% minimum tax Pillar Two Model Rules in Singapore [119]. - Net cash provided by operating activities for the three months ended November 27, 2025, was $8.41 billion, compared to $3.24 billion for the same period in 2024 [137]. Capital Expenditures and Investments - Capital expenditures for property, plant, and equipment are estimated to be approximately $20 billion in 2026, weighted to the second half of the year [124]. - The company plans to invest in leading-edge memory manufacturing sites in Idaho and New York, supported by the CHIPS Act [125]. - A second leading-edge memory manufacturing fab in Idaho is planned to begin construction in 2026, expected to be operational by the end of 2028 [128]. Shareholder Returns - The company has authorized the repurchase of up to $10 billion of outstanding common stock, with $7.49 billion repurchased through November 27, 2025 [133]. - A quarterly dividend of $0.115 per share was declared, payable on January 14, 2026 [134]. Cash and Marketable Investments - Cash and marketable investments totaled $12.02 billion as of November 27, 2025, up from $11.94 billion as of August 28, 2025 [122].