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

Key Takeaways

• 1.Micron reported revenue and non-GAAP EPS well ahead of consensus, guided FY1Q ahead on revenue and EPS despite slight gross margin pressure, and reiterated tight DRAM/NAND industry conditions through 2027-2028.
• 2.The company expanded its long-term strategic agreements to 26 customer contracts covering ~35% of projected revenue through FY30 ($150bn committed at floor pricing), enhancing cyclical earnings durability.
• 3.CapEx is set to accelerate sharply to $55bn in FY27 to support HBM and DRAM expansion, providing a positive read-through for semiconductor capital equipment makers AMAT and LRCX.

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.