According to ChainCatcher, Micron Technology (MU.O) CFO Mark Murphy said on an earnings call that the company expects revenue of $61.5 billion and earnings per share of $38.15 in the first quarter of fiscal 2027, with results continuing to rise on a quarter-over-quarter basis.
Murphy also said that quarter will be the low point for Micron’s gross margin for all of fiscal 2027, with gross margin expected to recover gradually in the quarters that follow.
Long-term agreements and market supply outlook
Murphy said Micron has signed 26 long-term agreements, locking in about $150 billion in long-term orders.
He added that supply and demand in the memory market in 2027 and 2028 will be tighter than in 2026, and said the company 「cannot see the end of the road for supply and demand returning to balance」.
Capital spending plans
Micron expects capital expenditures of about $25 billion in the first half of fiscal 2027, with spending set to be higher in the second half. The company said most of the incremental spending will go toward new wafer fabs, meaning construction spending rather than only equipment purchases.
Murphy said that is entirely because long-term agreements provide sufficient demand visibility, while new greenfield factories require a very long lead time.
Cash flow and shareholder returns
Murphy also said on the earnings call that Micron generated $44 billion in operating cash flow and $33.2 billion in free cash flow in the fourth quarter of fiscal 2026.
He said, "Over time, we expect to return 100% of excess cash to shareholders."
He also said Micron plans to increase capital returns starting on Dec. 9, 2026, the second anniversary of signing the final CHIPS Act agreement, mainly through stock repurchases.