MICRON TECHNOLOGY INC

Results of Operations

Consolidated Results

Total Revenue: Total revenue for the first quarter of 2026 was impacted by the factors described in the section titled “Industry Conditions” above.

Total revenue for the first quarter of 2026 increased 21% as compared to the fourth quarter of 2025 primarily due to increases in sales of both DRAM and NAND products.

•Sales of DRAM products increased 20% primarily due to an approximate 20% increase in average selling prices.

•Sales of NAND products increased 22% primarily due to a mid-teens percentage range increase in average selling prices and a mid-to-high single digit percentage range increase in bit shipments.

Total revenue for the first quarter of 2026 increased 57% as compared to the first quarter of 2025 primarily due to increases in sales of both DRAM and NAND products.

•Sales of DRAM products increased 69% primarily due to a mid-30% range increase in average selling prices and a mid-20% range increase in bit shipments.

•Sales of NAND products increased 22% primarily due to a high-20% range increase in bit shipments, partially offset by a mid-single-digit percent range decrease in average selling prices.

Consolidated Gross Margin: Our consolidated gross margin has been impacted by the factors described in the section titled “Industry Conditions.” Our consolidated gross margin percentage increased to 56% for the first quarter of 2026 from 45% for the fourth quarter of 2025 as a result of improvements in margins for both DRAM and NAND products. DRAM and NAND margins improved primarily due to increases in average selling prices and manufacturing cost reductions driven by improvements in product and process technology.

Our consolidated gross margin percentage improved to 56% for the first quarter of 2026 from 38% for the first quarter of 2025 as a result of improvements in margins for both DRAM and NAND products. DRAM margins improved primarily due to increases in average selling prices; an increased mix of higher-margin products, including HBM and other high-capacity data center products; and manufacturing cost reductions driven by improvements in product and process technology. NAND margins improved primarily due to manufacturing cost reductions.

Revenue by Business Unit

Percentages of total revenue may not total 100% due to rounding.

Changes in revenue for each business unit for the first quarter of 2026 as compared to the fourth quarter of 2025 were as follows:

•CMBU revenue increased 16% primarily due to increases in DRAM average selling prices and bit shipments driven by AI demand in cloud server markets.

•CDBU revenue increased 51% primarily due to increases in bit shipments and average selling prices for both data center DRAM and NAND.

•MCBU revenue increased 13% primarily due to increases in DRAM and NAND average selling prices, partially offset by decreases in bit shipments.

•AEBU revenue increased 20% primarily due to increases in DRAM and NAND average selling prices and DRAM bit shipments.

Changes in revenue for each business unit for the first quarter of 2026 as compared to the first quarter of 2025 were as follows:

•CMBU revenue increased 100% primarily due to increases in DRAM bit shipments and average selling prices driven by AI demand in cloud server markets for HBM, high-capacity dual in-line memory modules (“DIMMS”), and low-power server DRAM.

•CDBU revenue increased 4% primarily due to increases in DRAM average selling prices and higher NAND bit shipments, partially offset by decreases in NAND average selling prices.

•MCBU revenue increased 63% primarily due to increases in DRAM and NAND average selling prices and bit shipments.

•AEBU revenue increased 49% primarily due to higher DRAM and NAND bit shipments and DRAM average selling prices, partially offset by decreases in NAND average selling prices.

Operating Income by Business Unit

Percentages reflect operating income as a percentage of revenue for each business unit.

Changes in operating income for each business unit for the first quarter of 2026 as compared to the fourth quarter of 2025 were as follows:

•CMBU operating income increased primarily due to increases in DRAM average selling prices, higher bit shipments, and manufacturing cost reductions.

29 | 2026 Q1 10-Q

•CDBU operating income increased primarily due to higher bit shipments, increases in data center average selling prices, and manufacturing cost reductions, partially offset by higher R&D expenses.

•MCBU operating income increased primarily due to increases in DRAM and NAND average selling prices and manufacturing cost reductions, partially offset by lower bit shipments for both DRAM and NAND.

•AEBU operating income increased primarily due to increases in DRAM and NAND average selling prices, higher DRAM bit shipments, and DRAM manufacturing cost reductions.

Changes in operating income for each business unit for the first quarter of 2026 as compared to the first quarter of 2025 were as follows:

•CMBU operating income increased primarily due to higher bit shipments, increases in average selling prices, and manufacturing cost reductions, partially offset by higher R&D expenses.

•CDBU operating income increased primarily due to increases in DRAM average selling prices and cost reductions, partially offset by declines in NAND average selling prices and higher R&D expenses.

•MCBU operating income increased primarily due to increases in average selling prices, higher bit shipments, and manufacturing cost reductions.

•AEBU operating income increased primarily due to higher DRAM and NAND bit shipments, manufacturing cost reductions, and increases in DRAM average selling prices, partially offset by decreases in NAND average selling prices.

Operating Expenses and Other

Research and Development: R&D expenses vary primarily with the number of development and pre-qualification wafers processed and end-product solutions developed, personnel costs, and the cost of advanced equipment dedicated to new product and process development. Because of the lead times necessary to manufacture our products, we typically begin to process wafers before completion of performance and reliability testing. Development of a product is deemed complete when it is qualified through internal reviews and tests for performance, functionality, and reliability. R&D expenses can vary significantly depending on the timing of product qualification and product specifications.

R&D expenses for the first quarter of 2026 increased 12% as compared to the fourth quarter of 2025 and 32% as compared to the first quarter of 2025, primarily due to higher volumes of development and pre-qualification wafers and an increase in employee compensation.

Selling, General, and Administrative: SG&A expenses for the first quarter of 2026 increased 7% as compared to the fourth quarter of 2025 and 17% as compared to the first quarter of 2025, primarily due to an increase in employee compensation.

Interest Income (Expense), Net: Interest income (expense) improved in the first quarter of 2026 as compared to the fourth quarter of 2025 primarily due to a decrease in interest expense due to lower debt balances. Interest income (expense) improved for the first quarter of 2026 as compared to the first quarter of 2025 primarily due to a decrease in interest expense due to lower debt balances and an increase in interest income due to higher cash and investments balances.

Income Taxes: Our income tax (provision) benefit consisted of the following:

The change in our effective tax rate for the first quarter of 2026 as compared to the fourth quarter of 2025 and the first quarter of 2025 was primarily due to the 15% minimum tax Pillar Two Model Rules (“Pillar Two”). Singapore enacted legislation to implement Pillar Two, effective for us in 2026, which largely offsets the benefit from our Singapore tax incentive arrangements.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, introducing broad changes to the U.S. tax code, including modifications to corporate and international tax provisions, which primarily are effective for us beginning in 2026 and 2027. The aggregate impact of the OBBBA remains uncertain. We will continue to monitor future developments, including regulatory guidance and interpretations, which could have a material impact on our income tax provision. Further changes in the tax laws of foreign jurisdictions could arise as a result of the base erosion and profit-shifting project, including Pillar Two, undertaken by the Organisation for Economic Co-operation and Development. We continue to monitor for additional guidance and legislative changes related to Pillar Two in the jurisdictions where we operate.

Various tax reforms are being considered in multiple jurisdictions that, if enacted, contain provisions that could materially impact our tax expense. We continue to monitor the potential impact of these various tax reform proposals to our overall global effective tax rate and financial statements.

Other: Further information can be found in the following notes contained in Item 1. Financial Statements, Notes to Consolidated Financial Statements:

•Note 10. Debt

•Note 15. Equity Compensation Plans

•Note 17. Other Non-Operating Income (Expense), Net

•Note 18. Income Taxes