What happened
Micron Technology, Inc. (NASDAQ: MU) ended fiscal 2026 with $54.23 billion of fourth-quarter revenue, up from $41.46 billion in fiscal Q3. Operating cash flow reached $43.97 billion, while net capital spending was $10.77 billion.
The forward number matters more now. Micron Technology, Inc. (NASDAQ: MU) guided fiscal Q1 2027 revenue to $61.5 billion at the midpoint, 13.4% above fiscal Q4. The business is still growing after a 30.8% sequential revenue jump in the reported quarter.
Explain the financial terms
A fiscal quarter is a three-month period in the company's reporting year.
Why it matters
The investment case depends on expensive new memory capacity paying for itself. Using the company's reported figures, operating cash flow minus net capital spending equals $33.20 billion, matching its adjusted free cash flow. About 75.5 cents of each operating-cash-flow dollar remained after the quarter's net capital bill.
That strengthens the cash-funded investment claim. Micron Technology, Inc. (NASDAQ: MU) can spend on new production while keeping a large cash cushion. Cash, marketable investments and restricted cash ended the year at $73.48 billion.
The risk sits inside the same guide. GAAP gross margin was 86.8% in fiscal Q4, but management expects about 85.95% in fiscal Q1. That 0.85-point decline is small, yet it shows revenue can keep rising while the profit captured from each sales dollar begins to flatten.
Memory is still a cyclical manufacturing business. Rival capacity, weaker customer spending or lower prices could reverse margins quickly. One exceptional year and a large cash balance do not prove that current economics or the stock's valuation are durable.
Explain the financial terms
A fiscal quarter is a three-month period in the company's reporting year.
A profit margin expresses the specified profit measure as a share of sales.
What's next
The next quarter should test both sides. Revenue needs to land inside the $60 billion to $63 billion range, and cash generation must stay well above capital spending. Investors should also compare the actual gross margin with the 85.95% guide.
For now, the evidence strengthens the case that Micron Technology, Inc. (NASDAQ: MU) can fund growth internally. The next proof is holding that cash conversion as the memory cycle attracts more supply.
Explain the financial terms
A fiscal quarter is a three-month period in the company's reporting year.
A profit margin expresses the specified profit measure as a share of sales.