Micron Technology Inc. (MU) just reminded everyone why the memory chip business can be very good when it's good. The company reported first quarter fiscal 2026 results after the bell Wednesday that weren't just strong—they were eye-popping.
The Numbers Tell the Story: Micron posted revenue of $13.64 billion for the quarter, comfortably ahead of the $12.83 billion analysts were expecting. But here's where it gets interesting: adjusted earnings came in at $4.78 per share, crushing the $3.95 consensus estimate.
Revenue climbed roughly 20.5% compared to the same quarter last year, which is solid growth for a company of Micron's size. But the cash generation numbers really stand out. Operating cash flow hit $8.41 billion, up from $5.73 billion in the previous quarter and more than double the $3.24 billion from a year ago. The company turned that into $3.9 billion of adjusted free cash flow.
"In fiscal Q1, Micron delivered record revenue and significant margin expansion at the company level and also in each of our business units," said Sanjay Mehrotra, Micron's chairman, president and CEO.
The balance sheet looks healthy too. Micron ended the quarter with $12 billion in cash, marketable investments and restricted cash. And in a sign of confidence, the board declared a quarterly dividend of $0.115 per share, payable January 14, 2026, to shareholders of record as of December 29.
The Guidance That Shocked Wall Street: If the quarterly results were impressive, the outlook was downright stunning. Micron expects second quarter revenue of $18.7 billion, give or take $400 million. Wall Street had been expecting $14.16 billion. That's not a beat—that's a blowout of nearly $4.5 billion above expectations.
The company also guided to second quarter adjusted earnings of $8.42 per share, plus or minus 20 cents. For context, that implies massive sequential growth from an already strong first quarter.
"Our Q2 outlook reflects substantial records across revenue, gross margin, EPS and free cash flow, and we anticipate our business performance to continue strengthening through fiscal 2026," Mehrotra added.
Market Reaction: Investors liked what they saw. Micron shares surged 6.51% in after-hours trading to $240.40 following the announcement. The management team was scheduled to discuss the results in more detail on an earnings call at 4:30 p.m. ET.
