Micron Technology Inc. (MU) Executive Summary Micron Technology Inc. is a global memory-semiconductor manufacturer that, after a multi-quarter trough in 2023, has re-emerged as a high-margin, cash-generative business (trailing‑twelve‑month operating cash flow $30.65B and gross margin 58.4%). Recovery in Top-Line and Profitability The company is exhibiting very strong top-line and profitability rec
Micron Technology Inc. is a global memory-semiconductor manufacturer that, after a multi-quarter trough in 2023, has re-emerged as a high-margin, cash-generative business (trailing‑twelve‑month operating cash flow $30.65B and gross margin 58.4%).
The company is exhibiting very strong top-line and profitability recovery: most recent quarterly revenue was $23.86B and quarterly net income was $13.79B, with trailing‑twelve‑month net income at $24.11B, signaling large sequential gains over the past year (Revenue & Net Income). Margins have expanded sharply — trailing‑twelve‑month gross margin 58.4%, operating margin 56.2% and net margin 41.5% — reversing deeply negative margins from 2023 (Profit Margin Trends).
Per‑share metrics reflect the operating turnaround: split‑adjusted revenue per share rose from \$14.29 to \$51.32 and diluted EPS recovered from -\$6.07 to \$21.29 most recently, with one‑year revenue‑per‑share growth at 85.5% and one‑year diluted EPS growth at 416.1% (EPS Diluted & Revenue per Share). Return on equity has accelerated to 33.3% in the latest quarter, consistent with the margin recovery (Return on Equity (ROE)).
The company’s cash generation has supported expansion and returns: trailing‑twelve‑month operating cash flow $30.65B versus investing cash flow of -$17.91B and financing outflows of -$6.44B, highlighting material reinvestment and capital deployment over the past three years (Strategic Capital Allocation).
Notable risks remain. Reported net income has been highly volatile historically (net‑income avg/stdev 0.63), and diluted EPS has shown extreme quarter‑to‑quarter swings (peak quarter EPS growth 997.6%), which creates forecasting uncertainty (Earnings Quality Analysis; EPS Diluted & Revenue per Share). Investing cash outlays have increased substantially — investing cash flow moved from about -$5.48B to -$17.91B TTM — and financing shifted to -$6.44B TTM, meaning capex and returns are now large cash uses that should be monitored (Strategic Capital Allocation). Valuation multiples have also swung widely, with a prior spike to 139.1x and a current trailing P/E near 19.5x, underlining sensitivity to quarterly results (Price-to-Earnings (PE) Ratio Trend).
Key fundamentals to watch going forward are revenue‑per‑share and diluted‑EPS growth (current 1‑year rates 85.5% and 416.1%), the operating cash flow versus net income gap ($6.54B), free cash flow margin (~10.99%), ongoing investing cash flow (-\$17.91B) and ROE (33.3%), along with liquidity and coverage metrics such as current ratio 2.90 and interest coverage ~79.6x; monitor these alongside trailing P/E movements to assess persistence of the recent recovery (EPS Diluted & Revenue per Share, Earnings Quality Analysis, Strategic Capital Allocation, Return on Equity (ROE), Price-to-Earnings (PE) Ratio Trend).
The foundation of business quality and long-term value creation
Over the past five quarters MICRON TECHNOLOGY INC shows a clear and accelerating recovery in both revenue and net income. Revenue rose sequentially from $8.05B (period ending ) to $9.30B, $11.31B, $13.64B and then jumped to $23.86B in the most recent quarter. Net income followed a similar pattern, climbing from $1.58B to $1.89B, $3.20B, $5.24B and then to $13.79B in the latest quarter, with the largest incremental gains occurring in the last two reported periods.
Earlier in the series the company recorded multi-quarter net losses through 2023 (peaking at -$2.31B for the period ending ) before returning to positive net income in 2024 and then expanding materially in 2025–2026. The most recent quarterly revenue was $23.86B. The most recent quarterly net income was $13.79B.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Feb 2025 to Feb 2026
Revenue composition by disclosure category for the latest period
The provided excerpt does not contain the Item 1 (Business) section. It contains the table of contents, a list of defined terms, and forward‑looking statements, but it does not include explicit descriptions of the company’s products, services, customers, end markets, geographies, sales channels, revenue characteristics, or customer concentrations.
The excerpt does include defined terms for certain product abbreviations (for example DDR, DRAM, HBM, SSD) and the term OEM, but the excerpt does not state that these are sources of revenue or provide any details about how the company generates revenue from them.
Because the filing text provided does not explicitly state revenue sources or the other requested items, no Revenue Streams, Customer Profile, Geographic Reach, Distribution & Sales Channels, Recurring vs Transactional Revenue Characteristics, or Key Dependencies or Concentration Risks sections can be populated from this excerpt.
Analyzing long-term margin stability and competitive positioning
MICRON TECHNOLOGY INC's margin profile shows a pronounced trough in late 2023 and early 2024 followed by a steady and then accelerating recovery through 2025 into early 2026. Gross, operating and net margins were deeply negative around the November 2023 and February 2024 reporting periods (gross -14.5% and -0.3%, operating -20.2% and -5.7%, net -42.5% and -20.6%), turned positive by mid-2024, and have climbed each quarter since early 2025. The improvement has been most marked in the last year: gross margin rose from 34.7% (period ending 2025-02-27) to 58.4% (2026-02-26), operating margin from 31.0% to 56.2%, and net margin from 14.9% to 41.5% over the same span.
Most recent trailing twelve-month margins:
Understanding Profit Margins
Between Feb 2025 and Feb 2026, Micron Technology Inc converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
Over the past several quarters MICRON TECHNOLOGY INC's trailing twelve-month operating cash flow and net income have moved sharply higher from the lows and negatives seen in 2023 and early 2024. Operating cash flow has consistently exceeded net income since mid-2024, and both metrics have shown steady acceleration through 2025 into early 2026, with the cash-flow line rising more steeply than reported earnings.
Key inflection points include the turn from negative net income in 2023/early-2024 to sustained positive net income by mid-2024 and the pronounced increases in 2025–2026. Between the November-2025 and February-2026 TTM points net income increased from $11.91B to $24.11B while operating cash flow rose from $22.69B to $30.65B, widening the cash-over-earnings gap to $6.54B. The most recent trailing-twelve-month operating cash flow was $30.65B and net income was $24.11B.
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
MICRON TECHNOLOGY INC's ROE has accelerated sharply in the most recent year. Over the last five reported quarters it rose from 9.6% (2025-02-27) to 12.3% (2025-05-29), 15.8% (2025-08-28), 20.3% (2025-11-27) and reached 33.3% in the quarter ended 2026-02-26. This sequence shows a steady upward trend with an accelerating increase in the most recent two quarters.
Earlier in the series, the company recorded a multi-quarter negative trough, hitting -16.0% on 2023-11-30 before moving back into positive territory through 2024 (e.g., -8.6% on 2024-02-29, -3.5% on 2024-05-30, 1.7% on 2024-08-29, 8.3% on 2024-11-28). The dataset also contains prior multi-year highs (for example 51.5% on 2018-11-29). The most recent ROE was 33.3% (quarter ended 2026-02-26).
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
MICRON TECHNOLOGY INC's trailing-twelve-month operating cash flow has risen sharply over the past three years, climbing from roughly $2.02B in late 2023 to $30.65B by 2026-02-26, with notable step-ups each quarter (e.g., $10.35B on 2024-11-28, $22.69B on 2025-11-27, and $30.65B most recently). Investing cash flow has moved increasingly negative over the same period, reflecting larger cash outlays: investing TTM was about -$5.48B in late 2023 and has expanded to -$17.91B as of 2026-02-26, with sequential increases through 2024–2026 (-$9.90B, -$11.90B, -$14.09B, -$15.53B, -$17.91B).
Financing cash flow shifted from positive inflows in 2022–2023 (peaks of $4.98B and $4.25B) to outflows from 2024 onward, increasing in absolute value to -$6.44B at 2026-02-26 (previously -$850.0M on 2025-08-28 and -$4.17B on 2025-11-27). The most recent trailing twelve-month values are: operating cash flow $30.65B; investing cash flow -$17.91B; financing cash flow -$6.44B.
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
MICRON TECHNOLOGY INC's trailing twelve‑month P/E has moved materially over the last few quarters. After a pronounced spike to 139.1x in the period ending 2024‑08‑29, the ratio contracted to 28.6x in 2024‑11‑28 and then oscillated between roughly 16x and 22.5x through 2025 — 22.3x (2025‑02‑27), 17.6x (2025‑05‑29), 16.2x (2025‑08‑28) and 22.5x (2025‑11‑27) — before settling lower in the most recent quarter.
Longer history shows prior swings including a 39.7x reading in 2023‑03‑02 and single‑digit to low‑teens P/Es in several 2019–2022 quarters; several intermediate quarters in the provided series contain no value. The most recent trailing twelve‑month P/E for MICRON TECHNOLOGY INC was 19.5x.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.