Highlights

  • Micron shows 879.31% one-year basic EPS growth, P/E of 11.81 and PEG of -4.86.
  • Fiscal 2026 revenue was $133,188 million against $37,378 million; net income was $84,969 million.
  • The Board raised its repurchase authorization to $35.16 billion on October 8, 2026.
  • Micron declared a $0.15 quarterly dividend and held $73.45 billion in cash and marketable investments.

Growth, P/E and PEG sit side by side at Micron Technology (NASDAQ:MU), an undervalued growth stock: basic earnings per share grew 879.31% over one year, the trailing twelve-month P/E ratio is 11.81 and the PEG ratio, on an expected basis, is -4.86, with shares trading at USD 968.66 on October 28, 2026, up 4.30%. In its latest disclosures, the memory and storage maker entered strategic customer agreements in the third and fourth quarters of fiscal 2026, declared a $0.15 per share quarterly dividend on September 30, and increased its share repurchase authorization on October 8, after reporting fiscal 2026 net income of $84,969 million in its annual report.

Based in Boise, Idaho, and incorporated in Delaware, Micron describes itself as a global leader in semiconductor memory and storage, with DRAM, NAND and NOR products. It sells through four market-based business units: Cloud Memory, Core Data Center, Mobile and Client, and Automotive and Embedded. It had approximately 61,000 employees as of September 3, 2026, and fiscal 2026 contained 53 weeks.

Growth: Fiscal 2026 Earnings, Revenue and Business Units

Net income was $84,969 million in fiscal 2026 against $8,539 million in fiscal 2025. Basic earnings per share were $75.38 against $7.65, and diluted earnings per share were $74.33 against $7.59. Revenue was $133,188 million against $37,378 million, an increase of 256% that the company attributed primarily to higher DRAM and NAND sales. The gross margin percentage was 81% against 40%, and operating income was $99,340 million against $9,770 million.

DRAM sales increased 252% and NAND sales increased 274%, primarily on higher average selling prices and bit shipments. By business unit, revenue was $43,085 million at Cloud Memory, $37,592 million at Core Data Center, $36,601 million at Mobile and Client and $15,886 million at Automotive and Embedded.

Valuation: P/E of 11.81, PEG of -4.86 and Cash Generation

The P/E ratio of 11.81 is measured on trailing twelve-month earnings, and the PEG ratio of -4.86 on expected growth. Net cash provided by operating activities was $89,675 million against $17,525 million. For the fourth quarter, adjusted free cash flow, a non-GAAP measure, was $33,199 million.

The company described its strategic customer agreements as take-or-pay arrangements with binding multi-year volume commitments. On its September 30 call, management said more than 75% of fiscal 2027 shipments were under customer allocation or contract, and that 26 such agreements cover approximately 35% of production bit volume through 2030.

Capital Returns, Debt and Liquidity

Cash and marketable investments totaled $73.45 billion at September 3, 2026, against $11.94 billion a year earlier, and $2.00 billion was available under the Revolving Credit Facility. Fixed-rate debt had an aggregate carrying value of $2.79 billion, against $10.55 billion, after $10.04 billion of debt repayments in fiscal 2026. Customer deposits of $12.75 billion are nearly all scheduled for repayment between 2029 and 2031.

Micron paid $610 million in dividends and used $650 million to acquire 2.5 million shares in fiscal 2026. The Board's October 8 increase sets a total authorization of $35.16 billion, with repurchases made from December 9, 2026 under its CHIPS Act funding agreements; $2.16 billion remained under the 2018 authorization at September 3. The company estimates net capital expenditures of approximately $11.5 billion in the first quarter of fiscal 2027.

Disclosed Risks and Outlook

The company disclosed that annual DRAM and NAND average selling price changes over five fiscal years ranged from an increase of approximately 200% to a decrease of approximately 50%, that prices may decline as industry supply increases, and that supply allocation decisions may affect certain customers.

Micron recognized $500 million of patent license charges in fiscal 2026. On October 5, 2026, it and Netlist agreed to dismiss their litigation under settlement and license agreements. On October 6, a Munich court issued rulings requiring Micron to stop offering certain 3D NAND products in Germany; Micron has appealed. A putative class action filed June 25, 2026 alleges a conspiracy to restrict DRAM supply and fix prices, and seeks damages, treble damages and injunctive relief.

For the first quarter of fiscal 2027, management guided to revenue of $60 billion to $63 billion, non-GAAP gross margin of approximately 86.3% and non-GAAP earnings per share of $37.15 to $39.15. Chief Operating Officer Manish Bhatia said the company has no line of sight to when supply and demand balance, and that HBM pricing for calendar 2027 was raised significantly.