Micron Technology Inc Q1 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Timothy Arcuri - UBS AG - Analyst : Sanjay, I wanted to ask you about customer LTAs. I know we're hearing about D5 that's being bundled with HBM and in some cases, even NAND. So can you just talk about these LTAs. I know it sounds like these are stretching out through 26 and in some cases, even into '27. I've even heard of some stuff into '28. So can you talk about the nature of these LTAs? And then I had a follow-up as well. Thanks. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 17, 2025 / 9:30PM, MU.OQ - Q1 2026 Micron Technology Inc Earnings Call

Question: Timothy Arcuri - UBS AG - Analyst : And then, Mark, I wanted to ask you about CapEx. So you took it up to $20 billion net, but it still seems, I mean, you're not guiding all fiscal '26 revenue. So we don't really know what the capital intensity number is, but it seems like it's like 25% to 30%, which is a little below your 35% metric that you usually think of. So is that because you're constrained because of fab space? And can you just talk about does that sort of like roll into fiscal '27 where we would see CapEx up more near that 35% range? Thanks.

Question: Timothy Arcuri - UBS AG - Analyst : Yes, yes. They didn't answer the prior question. Operator?

Question: Timothy Arcuri - UBS AG - Analyst : Can you turn it back to management so they can answer the prior question?

Question: Timothy Arcuri - UBS AG - Analyst : We did not.

Question: Timothy Arcuri - UBS AG - Analyst : We heard, I heard Sanjay's response to the first question, but I didn't hear your response, Mark, to my question on CapEx and on capital intensive.

Question: Timothy Arcuri - UBS AG - Analyst : Okay, Mark, thank you.

Question: C.J. Muse - Cantor Fitzgerald LP - Analyst : Yes, good afternoon. Thank you for taking the question. I guess, Mark, to follow up on the prior question around CapEx and the relative growth seems very conservative in the backdrop that we're in. And it feels like that you're just sitting here without clean room space. And it also doesn't sound like you're meaningfully pulling in clean room. So can you talk about the philosophy there? And I guess what I'm taking away from your commentary is that you're being very conservative and judicious with adding capacity here. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 17, 2025 / 9:30PM, MU.OQ - Q1 2026 Micron Technology Inc Earnings Call

Question: C.J. Muse - Cantor Fitzgerald LP - Analyst : Very helpful. And then I guess as a follow-up for gross margins, Obviously, the guide is quite stellar. But curious as you go through calendar '26, how should we think about cost down across both DRAM and NAND? And as you transition from three to four, is there anything that we should keep in mind or we should think about it, contemplate in our models where there might be higher costs temporarily giving yields or whatnot? Thanks so much.

Question: C.J. Muse - Cantor Fitzgerald LP - Analyst : Thank you.

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : Hey, good afternoon and great job of quarterly execution. Great job on the quarterly execution. Just over the past three to four months as we track the different ASIC AI, XPU programs. There's been a significant upward revision on ASIC XPU volume shipments next year. You have Google TPU, Avatanium and so on, right? And all of these XPUs still going to be using HBM3E. Have you -- has the team seen this near-term positive dynamic in your order book for three? And given that you're fully contracted for calendar '26, like what -- and what appears to be growing upside to next year's view. How is the Micron team going to try and manage this upside dynamic in 3E alongside a strong HBM4 for demand profile?

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : I appreciate that, Sanjay. And then after two to three quarters of enterprise, this is the sort of muted trends, I believe the team saw a strong acceleration in the business, right, according to some of the third-party research estimates, I think your enterprise SSD business grew like 25% sequentially in the most recent quarter, right? So you're the number3 market share leader amongst eight or nine competitors, a very strong share position. Given, I would assume, increasing demand trends here, expanding lead times, is the Micron team also entering into long-term supply agreements with your ESSD customers. And then secondarily, I mean, SSD demand, is it more tied to expansion in inferencing workloads as customers aggressively move to monetization? In other words, is storage intensity to be higher on inferencing versus training workloads?

Question: Tom O'Malley - Barclays Services Corp - Analyst : Hey guys, thanks for taking my question. Sanjay, you've been helpful in the past about kind of talking about Micron's ramp in HBM and then also the ramp of the total market. You gave some new color on HBM with the $35 billion moving at a 40% CAGR. But Micron specifically, I was curious if you could give us any color on percentage of the DRAM business today that's HBM from a dollars perspective. And then on share as you move into next year, obviously, there's a large competitor that is looking to become more competitive at three. We haven't heard anything on four yet. How do you feel about your competitive positioning into next year? And -- do you think that you're going to make any strategic decisions differently based on the public certification of their memory in the next couple of months? Thank you very much.

Question: Tom O'Malley - Barclays Services Corp - Analyst : Perfect. And just as a follow-up, you've said historically kind of the $8 billion run rate. If you look at November and February, you're taking up the total TAM, but any color specifically on HBM contribution in the November quarter and what you're expecting in the guide?

Question: Tom O'Malley - Barclays Services Corp - Analyst : Thank you.

Question: Krish Sankar - Cowen and Company LLC - Analyst : Yeah, hi, thanks for the my question and congrats on the phenomenal results and guidance. My first question is for Mark. I know you spoke about the sustainability for the next year. I'm kind of curious how to think about gross margins beyond the February quarter, like interim May, is it going to improve or sustain at these levels? How to think about the gross margins and I have follow-up for Sanjay. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 17, 2025 / 9:30PM, MU.OQ - Q1 2026 Micron Technology Inc Earnings Call

Question: Krish Sankar - Cowen and Company LLC - Analyst : Got it. Thanks a lot, Mark. That's super helpful.

Question: Krish Sankar - Cowen and Company LLC - Analyst : Got it. Super helpful, Mark. Thanks for that. And Sanjay, just as a follow-up to the earlier question. I understand you on you like put some bond reconditions, but a year ago, you totally nailed it when you said you're going to get like HBM market share close to your DRAM market share, the DDR market share. So when you talk about like a 2028 CAGR of 40%, $100 billion TAM, how do you think about Micron's HBM market share in that route. Should we assume it's going to be the low 20%. So is that spectrum or is going to be lower? Thank you.

Question: Krish Sankar - Cowen and Company LLC - Analyst : Thanks a lot, Sanjay. I appreciate it Thank you LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 17, 2025 / 9:30PM, MU.OQ - Q1 2026 Micron Technology Inc Earnings Call

Question: Christopher Danely - Citi - Analyst : Hey, thanks guys. So I just want to dig in on these long-term customer contracts you guys are negotiating. Can you give us any more sense of when you think you'll be able to sign these and then -- maybe just talk about what the holdup is? Is it just the unprecedented length or size? And given that the AI companies are asking for so much of your capacity, are you able to get them to more or less contribute to the building of a new fab. Thanks.

Question: Christopher Danely - Citi - Analyst : That's still very helpful, Sanjay. Thanks. And for my follow-up, just a question on HBM and the pricing there. So given that the demand is so strong, I think you said you're sold out for '26. Are you guys locked in to a set price? Or can you let that price more or less float a little bit given how strong demand is like DDR5 does, for example.

Question: Christopher Danely - Citi - Analyst : Great, thanks, Sanjay. And congrats again on the results. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 17, 2025 / 9:30PM, MU.OQ - Q1 2026 Micron Technology Inc Earnings Call

Question: Vivek Arya - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Thanks for taking my questions. Sanjay, I'm curious, at what point does increasing memory price impact demand for electronics. If you set aside the data center and the AI market. Do you see some elasticity do you see any impact on demand as you look into 2026 for more consumer and kind of traditional enterprise products. How does that shape where memory pricing can go next year?