Micron says fiscal Q1 is the gross margin floor, higher margins ahead
firstadopter · x · 2026-10-01
Micron guided on its earnings call that fiscal Q1 2027 will be the floor for gross margins, with margins rising through the rest of the fiscal year.
- The Q1 pressure comes from higher FY2026 manufacturing incentive compensation absorbed into fiscal Q4 inventory, which flows through COGS as that inventory sells in Q1
- Q2 benefits from less of that expense, but is partly offset by higher FY2027 incentive comp
- Management expects higher gross margins for the remainder of FY2027, with a more moderate pace of price increases
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