It has been about a month since the last earnings report for Micron (MU Quick QuoteMU - Free Report) . Shares have added about 35.4% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Micron due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Micron Q1 Earnings and Revenues Beat Estimates

Micron reported first-quarter earnings of $4.78 per share, beating the Zacks Consensus Estimate by 22.25%. The company’s first-quarter earnings jumped 167% year over year from the year-ago quarter’s earnings of $1.79 per share.

Micron Technology’s revenues increased 56.7% year over year to $13.64 billion and surpassed the Zacks Consensus Estimate by 7.26%. The top line was driven by robust demand for its high bandwidth memory (HBM) products.

Micron Q1 Top-Line Details

Technology-wise, DRAM revenues of $10.8 billion, accounting for 79% of the total revenues in the fiscal first quarter, increased 69% year over year and 20% sequentially. The company experienced record demand for data center DRAM, driven by strong growth in HBM and robust performance of high-capacity DIMMs and low-power server DRAM products.

NAND revenues of $2.7 billion, representing 20% of the total revenues, were up 22% year over year as well as sequentially.

Other revenues were $88 million in the reported quarter, which increased from $68 million in the year-ago quarter and was up from $79 million in the previous quarter.

Previously, Micron used to report its business segments as follows: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit and Storage Business Unit. Following the reorganization, its disclosure of business segments is as follows: Cloud Memory Business Unit, Core Data Business Unit, Mobile and Client Business Unit and Auto and Embedded Business Unit.

Business segment-wise, revenues of $5.28 billion from the Cloud Memory Business Unit soared 100% from the year-ago quarter and 16% sequentially, driven by an increase in bit shipment and higher pricing.

Revenues of $2.38 billion from the Core Data Business Unit grew 4% on a year-over-year basis and increased 51% on a quarter-over-quarter basis due to higher pricing and an increase in bit shipments.

The Mobile and Client Business Unit’s revenues were $4.26 billion, up 63% from the year-ago period and up 13% from the previous quarter. Revenues from the Auto and Embedded Business Unit totaled $1.72 billion, which increased 49% year over year and 20% sequentially.

Micron’s Q1 Operating Details

For the fiscal first quarter, MU posted a non-GAAP gross profit of $7.75 billion, up 125 year over year and 50% sequentially. The fiscal first-quarter non-GAAP gross margin of 56.8% improved from the year-ago quarter’s 39.5% and the previous quarter’s 45.7%.

Non-GAAP operating expenses were $1.33 billion compared with the previous quarter’s $1.21 billion and the year-ago quarter’s $1.05 billion.

Micron Technology’s non-GAAP operating income of $6.42 billion was higher than the previous quarter’s non-GAAP operating income of $3.96 billion. It also shows significant improvements from the year-ago quarter’s non-GAAP operating income of $2.39 billion.

The non-GAAP operating margin came in at 47%. Micron Technology posted a non-GAAP operating margin of 35% for the previous quarter, and it had a non-GAAP operating margin of 27.5% in the year-ago quarter.

Micron’s Balance Sheet & Cash Flow

MU exited the reported quarter with cash and investments of $12.02 billion compared with $11.94 billion at the end of the previous quarter. Its total debt, as of Nov. 27, 2025, was $11.19 billion compared with the $14.02 billion witnessed at the end of the previous quarter.

The company generated an operating cash flow of $8.4 billion in the fiscal first quarter. It spent $4.5 billion on capital expenditure in the quarter, resulting in an adjusted free cash flow of $3.9 billion. MU paid out $134 million in dividends and repurchased shares worth $300 million in the first quarter of fiscal 2026.

Micron’s Q2 Outlook

MU provided its guidance for the second quarter of fiscal 2026. The company anticipates revenues of $18.7 billion (+/-$400 million) in the fiscal second quarter. For the fiscal second quarter, Micron Technology projects a non-GAAP gross margin of 68% (+/-100 basis points). Operating expenses on a non-GAAP basis are estimated to be $1.38 billion (+/-$20 million). Adjusted EPS is anticipated to be $8.42 (+/- 20 cents).

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 90.77% due to these changes.

VGM Scores

At this time, Micron has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Micron has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.