Micron Technology (NASDAQ: MU) just posted a fiscal fourth quarter that redefines semiconductor earnings. Revenue hit $54.23 billion, a 379% jump from $11.32 billion a year ago and well past the $51.33 billion consensus. Non-GAAP diluted EPS of $33.42 beat the $31.72 estimate by nearly 5%. These numbers are staggering. Think about it: the company generated more revenue in this single quarter than it did in any full fiscal year before 2026.
This growth is fueled by one thing: the AI infrastructure buildout. Micron's Cloud Memory and Core Data Center business units posted revenue of $16.3 billion and $18.0 billion, with operating margins above 75% in both. The Core Data Center unit alone exploded, growing revenue more than 11x year-over-year, from $1.58 billion to $18.0 billion. Gross margin surged to 87.0% on a non-GAAP basis, up from 45.7% a year ago, as the product mix shifted decisively toward high-value data center offerings. Operating cash flow reached $43.97 billion in Q4, bringing the full-year total to $89.68 billion.
The earnings beat is notable. The guidance is more interesting. Micron initiated Q1 FY2027 revenue guidance of $60.0 billion to $63.0 billion, with non-GAAP EPS of $37.15 to $39.15. The midpoint of $61.5 billion implies sequential growth of roughly 13% from Q4's already-record level. Gross margin guidance of approximately 86.25% suggests management sees the current pricing and mix environment as sustainable, not a one-off peak. The company also guided operating expenses to $2.06 billion on a non-GAAP basis, down from $2.57 billion in Q4, reflecting continued investment in R&D and manufacturing.
The durability of these margins is the key analytical question. In just four quarters, Micron's gross margin has expanded from 45.7% to 87.0%, driven by AI demand that has eliminated pricing pressure in high-bandwidth memory and data center DRAM. CEO Sanjay Mehrotra referenced the company's Strategic Customer Agreements in the release, which provide forward visibility into demand. Those agreements appear on the balance sheet as $12.9 billion in noncurrent customer contract liabilities, up from $568 million at the end of Q3. That 22x sequential jump in customer deposits is a concrete signal: hyperscalers are committing capital to secure supply, not just placing spot orders.
Capital allocation reflects this confidence. Micron invested $10.77 billion in net capital expenditures during Q4, bringing the full-year total to $27.37 billion. Adjusted free cash flow was $33.20 billion for the quarter and $62.31 billion for the year. The company finished fiscal 2026 with $73.48 billion in cash and marketable investments. The board declared a quarterly dividend of $0.15 per share, unchanged from the prior quarter. The company repurchased $650 million in stock during fiscal 2026 under its repurchase program, a modest amount relative to the cash generation.
The Q1 guidance implies a forward non-GAAP P/E of roughly 30x at the EPS midpoint, based on the current market cap. That multiple is not cheap. It reflects a growth trajectory few companies in any sector can match. The real question is whether the sequential revenue growth rate can be sustained as the base expands. Q4 revenue of $54.23 billion was up 31% sequentially from Q3's $41.46 billion. The Q1 midpoint of $61.5 billion implies 13% sequential growth, a deceleration that is natural given the scale but still represents an annualized run rate above $240 billion.
Micron's fiscal 2026 full-year revenue of $133.19 billion compares to $37.38 billion in fiscal 2025. The company has effectively tripled in size in one year. The risk isn't near-term demand, which appears locked in through customer agreements. It's the sustainability of the pricing environment as competitors ramp capacity. For now, Micron is operating in a seller's market with no visible ceiling.