Micron (MU) Stock Falls as Investors Weigh Record Margins Before September 30 Earnings

TLDR

• Micron closed at $1,000.26, down 1.61%, underperforming the S&P 500’s 0.58% drop
• The stock is up 18.07% over the past month, well ahead of the broader tech sector
• Q3 fiscal 2026 revenue hit a record $41.5 billion, with net income of $28.2 billion
• Gross margins reached 84.6% and are expected to climb to around 86% next quarter
• Earnings are due September 30, with EPS forecast at $31.39, up 936% year over year

Micron stock slipped 1.61% on Tuesday, closing at $1,000.26. That undercut the S&P 500, which fell 0.58%, and the Dow, which dropped 1.18%.

Micron Technology, Inc., MU

Despite the daily pullback, MU has climbed 18.07% over the past month, well outpacing the tech sector’s 0.12% gain and the S&P 500’s 0.36% loss over the same period.

The stock currently sits about 20% below its 12-month high of $1,255.00, even after a run of more than 700% over the past year.

Record Numbers Heading Into Earnings

Micron reports earnings on September 30, 2026. Wall Street is expecting EPS of $31.39, a 936% jump from the same quarter last year. Revenue is forecast at $50.76 billion, up 349% year over year.

For the full fiscal year, analysts estimate EPS of $73.86 and revenue of $129.61 billion, reflecting earnings growth of roughly 791%.

Those forecasts are built on a business that has changed dramatically. In Q3 fiscal 2026, Micron posted revenue of $41.5 billion, up from $9.3 billion a year earlier. Net income hit $28.2 billion, versus $1.9 billion in the same period last year.

Operating cash flow came in at $25.4 billion for the quarter alone. The data center segment generated more than $25 billion in revenue in Q3 by itself.

Micron’s forward P/E sits at around 6.23 to 6.44, a steep discount to its industry average of 21.01. Its PEG ratio of 0.64 is in line with the industry average.

The Margin Question

Gross margin reached 84.6% in the latest quarter, up from 37.7% a year ago. Micron expects that to hit roughly 86% next quarter.

That is the number investors are watching most closely. Memory markets are cyclical. When supply catches up to demand, prices fall and margins compress. Micron has been through that before.

The key question heading into the September 30 report is whether current margins reflect a new baseline or a peak in the cycle.

Analysts are watching three things: earnings growth from AI demand, where margins settle as the cycle matures, and whether new production capacity from Micron or competitors puts pressure on memory prices.

Micron carries a Zacks Rank of 2 (Buy), and its industry group ranks in the top 12% of all sectors tracked by Zacks.

The stock’s 52-week range runs from $138.34 to $1,255.00, with average daily volume of 42.8 million. Tuesday’s session saw 26.6 million traded.

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