Shares of chipmaker Micron (MU) jumped in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2026. Earnings per share came in at $4.78, which beat analysts’ consensus estimate of $3.96 per share. Sales increased by 56.6% year-over-year, with revenue hitting $13.64 billion. This also beat estimates of $12.91 billion.
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In addition, the firm reported an adjusted operating income margin of 45%, while operating cash flow came in at $8.41 billion. This was up from $3.24 billion for the same period last year. These results were mainly driven by the firm’s Mobile and Compute and Networking segments, which account for the largest portion of revenue, as per the image below.
Q2 2026 Outlook
Looking ahead to the second quarter of 2026, revenue is expected to be between $18.3 billion and $19.1 billion, which is way above the estimated $14.23 billion. Moreover, Micron projects adjusted earnings in the range of $8.22 to $8.62 per share, which is a big beat compared to the $4.49 per share consensus estimate.
Is MU a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MU stock based on 27 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average MU price target of $263.72 per share implies 16.7% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
