Micron Technology Inc. (MU): Strong Quarter and Guidance, with New Customer Agreements and Increased CapEx to Support Supply Additions – Goldman Sachs Equity Research

Key Takeaways

• 1.Micron reported revenue of $54.23 bn and non-GAAP EPS of $33.42, outperforming Goldman Sachs and consensus expectations, driven by solid demand across DRAM ($39.8 bn) and NAND ($14.1 bn).
• 2.Management has expanded long-term customer agreements to 26 (covering ~35% of revenue through FY30 and representing ~$150 bn committed revenue over 5 years), with 75% containing structured pricing.
• 3.CapEx guidance for FY27 was increased meaningfully to $55 bn to accelerate fab construction and output in Idaho, Singapore, Hiroshima, and New York to support HBM and conventional DRAM capacity.

Table of Contents

• Key stock takeaways
• Read-through to our coverage
• Quarterly results were above the Street
• Strategic Customer Agreements
• Manufacturing and supply
• DRAM
• NAND
• FY1Q revenue and EPS guidance is well above the Street, with gross margins below
• Estimate changes
• Price target
• We are Neutral rated on MU
• Exhibit 1: MU – Variance summary
• Exhibit 2: MU – Guidance summary
• Exhibit 3: MU – Old vs. New CY estimates
• Exhibit 4: Price target

Report data

Exhibit 1: MU – Variance summary — as of September 30, 2026.