MU · 10-K · 2026A · Full report

Gross Margin Drivers

MICRON TECHNOLOGY INC · 2026-10-09 · Importance 69 · Surprise 64 · No source text

Consolidated gross margin increased to 81% in fiscal 2026 from 40% in fiscal 2025, with gross margin dollars rising to $107.504 billion from $14.873 billion. Margin expansion reflected higher average selling prices, favorable product mix, and manufacturing cost reductions from continued execution. DRAM and NAND margins both improved, while the prior-year DRAM improvement had also benefited from a higher mix of HBM and other higher-margin products. Gross margin percentage had increased from 22% in fiscal 2024 to 40% in fiscal 2025, demonstrating a substantial two-year improvement.

Key facts

• Consolidated gross margin percentage for 2026: 81%; for 2025: 40%; for 2024: 22%. source
• Micron's consolidated gross margin for 2024 reflected $987 million of benefit due to lower costs from the sale of inventories written down to their net realizable value in 2023. source
• The consolidated gross margin improvement in 2026 was driven primarily by increases in average selling prices and also benefited from favorable mix and manufacturing cost reductions. source

Impact estimates