Cloud Memory Business Unit revenue nearly doubled to $5.284 billion, driving gross margins to 66% as AI infrastructure demand surges.
Micron Technology reported Q1 FY2026 revenue of $13.643 billion, a 56.6% year-over-year increase, fueled by strong demand for AI infrastructure. The Cloud Memory Business Unit nearly doubled its revenue to $5.284 billion, achieving a 66% gross margin.
The company guided for Q2 EPS of $8.42 with a 68% gross margin, reflecting sustained profitability. Shares have surged 163% year-to-date and 693.87% over the past year but remain 25% below the $818.67 52-week high.
CEO Sanjay Mehrotra described Micron as “an essential AI enabler,” highlighting its shift from a cyclical memory laggard to a key player in AI-driven markets. Analysts project a $1,250 target by 2031 if HBM margins stay above 60% and hyperscaler capex demand persists.