US · Nasdaq · MU
Micron (MU) stock analysis: valuation and financials
Technology · Semiconductors
$904.90 +3.0% Price as of Oct 19, 2026
Memory cyclical at a cycle peak: 80.7% gross margin, 86.2% ROIC, $40.2B net cash, 12.05x P/E; base case +9.5% upside versus bear case -66.1%. Risk/reward balanced, not compelling.
- Market cap
- $1.0T
- P/E
- 12.0x
- EV/Sales
- 7.4x
- FCF yield
- 5.8%
- Dividend yield
- 0.1%
- 52-week range
- $187.06 – $1,213.56
Research as of Oct 20, 2026
Business quality scorecard
- Growth100
- Profitability100
- Cash flow100
- Balance sheet100
- Capital allocation83
- Innovation61
- Valuation89
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Micron sells DRAM (75.6% of FY2026 revenue) and NAND/NOR chips and modules to hyperscale cloud, data center OEM/NeoCloud, mobile/PC and automotive/embedded buyers at contract or periodically negotiated prices, and the profit engine is CMBU — $43.09B revenue at a 72.5% operating margin contributing 30.9% of segment operating profit.
Financials by year
| FY2022Sep 2021–Aug 2022 | FY2023Sep 2022–Aug 2023 | FY2024Sep 2023–Aug 2024 | FY2025Sep 2024–Aug 2025 | FY2026Sep 2025–Aug 2026 | |
|---|---|---|---|---|---|
| Revenue | $30.8B | $15.5B | $25.1B | $37.4B | $133.2B |
| Revenue growth | +11.0% | -49.5% | +61.6% | +48.9% | +256.3% |
| Gross margin | 45.2% | -9.1% | 22.4% | 39.8% | 80.7% |
| Operating margin | 31.5% | -37.0% | 5.2% | 26.1% | 74.6% |
| Net income | $8.7B | -$5.8B | $778.0M | $8.5B | $85.0B |
| Free cash flow | $3.1B | -$6.1B | $121.0M | $1.7B | $59.0B |
| FCF margin | 10.1% | -39.4% | 0.5% | 4.5% | 44.3% |
Amounts in USD · What is free cash flow?
Margins Gross margin rose to 80.7% in FY2026 from 39.8% (+40.9pp) and operating margin to 74.6% from 26.1%; quarterly gross margin climbed from 38.4% in Q1 FY2025 to 86.8% in Q4 FY2026 on AI-driven pricing and mix.
- Cash flow HealthyOperating cash flow of $89.7B exceeded net income of $85.0B; cash conversion 1.23x, aided by higher payables and accrued taxes.
- Debt LowTotal debt $3.28B against $38.36B cash and $5.07B short-term investments; net cash of $40.15B and net debt/EBITDA of -0.37x.
Balance sheet Leverage · Net cash
- Cash & short-term investments
- $43.4B
- Total debt
- $3.3B
- Net cash
- $40.2B
- Interest coverage
- 937.2x
- Current ratio
- 3.3x
As of Sep 3, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management StrongExecution: FY2026 revenue $133.2B (+256.3% y/y), operating margin 74.6%, ROIC 86.2% versus -9.7% ROIC in the FY2023 downturn.
- Credibility HighRevenue beat the guided range in all five comparable quarters, most recently $54.23B versus a $49–51B guide for Q4 FY2026.
Of 15 guided figures checked: 15 beat, 0 in range, 0 missed.
Valuation range
Implied value per share · Price when researched: $904.90
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.