Micron Technology (MU) reported Q1 2026 results last Wednesday. Revenue of $13.6 billion was up 57% from Q1 2025. Operating income of $6.1 billion was up 45% from Q1 2025.
The growth was partly from strong demand in its Cloud Memory business unit, where revenue increased 100% year-over-year.
Management provided Q2 revenue guidance of $18.7 billion, or 37% quarter-over-quarter growth. For the full fiscal year, the average forecast of 30 Wall Street analysts, as reported in Yahoo Finance, is $73.8 billion, or 97% year-over-year growth.
I created a valuation analysis model to see if MU could be a good Buy:
[MU Valuation Analysis](https://docs.google.com/spreadsheets/d/11a-IdIyfte1_Hzj4J-nuuomuJDIln6S-Ue8c8haFl-8/edit?usp=sharing)
Adding the projected revenue growth and trailing operating margin provides 130 Value Points. My minimum required Value Points is 40, which represents the top 15% of publicly traded stocks.
The current Enterprise Value of MU is $300.2 billion, based on Friday’s closing stock price of $265.92. This is 12.7 times the projected operating income of $23.6 billion.
My Value Score calculation is 130/12.7, or 10.2. My minimum required Value Score for a Buy consideration is 2.0.
Given MU’s growing capital expenditure investments, I replaced operating income with unlevered free cash flow in the model. The adjusted Value Score came in at 5.5, still solidly in Buy territory.
MU looks like a strong Buy to me, and I bought some shares on Thursday. As always, please do your own research before making any investment decision.
