MU · Q3 FY2026
MICRON TECHNOLOGY INC Q3 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $41.46B | $9.30B (yr ago) | Beat |
| EPS | $24.67 GAAP | $1.68 GAAP (yr ago) | Beat |
| Free Cash Flow | $17.56B | $1.67B (yr ago) | Beat |
| Gross Margin | 84.6% GAAP | 37.7% GAAP (yr ago) | Beat |
| Operating Margin | 80.4% GAAP | 23.3% GAAP (yr ago) | Beat |
What changed
Revenue more than quadrupled year over year to $41.46 billion, while GAAP gross margin expanded by 46.9 percentage points to 84.6%. Free cash flow reached $17.56 billion despite $7.83 billion of property, plant and equipment spending, and management guided Q4 revenue to $50.0 billion with an approximately 86% gross margin.
Impact on the investment thesis
With no prior SageNoodle fair value, this update establishes a base-case value of $900 per share. The extraordinary margin expansion and Q4 outlook support materially higher normalized earnings, but the $977.41 share price already discounts considerable durability in economics far above Micron's historical range.