Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

Micron Technology, Inc.

Consolidated Statements of Operations

(In millions, except per share amounts)

(Unaudited)


	Quarter Ended				Nine Months Ended
	May 28, 2026		May 29, 2025		May 28, 2026		May 29, 2025

Revenue	$	41,456	$	9,301	$	78,959	$	26,063
Cost of goods sold	6,400		5,793		18,502		16,244
Gross margin	35,056		3,508		60,457		9,819

Research and development	1,316		965		3,737		2,751
Selling, general, and administrative	407		318		1,088		891
Other operating (income) expense, net	15		56		43		61
Operating income	33,318		2,169		55,589		6,116

Interest income	215		135		509		350
Interest expense	—		(123)		(106)		(353)
Other non-operating income (expense), net	(321)		(68)		(559)		(90)
	33,212		2,113		55,433		6,023

Income tax (provision) benefit	(4,978)		(235)		(8,178)		(695)
Equity in net income (loss) of equity method investees	9		7		13		10
Net income	$	28,243	$	1,885	$	47,268	$	5,338

Earnings per share
Basic	$	25.03	$	1.69	$	41.97	$	4.79
Diluted	24.67		1.68		41.40		4.75

Number of shares used in per share calculations
Basic	1,128		1,118		1,126		1,114
Diluted	1,145		1,125		1,142		1,123

See accompanying notes to consolidated financial statements.

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Micron Technology, Inc.

Consolidated Statements of Comprehensive Income (Loss)

(In millions)

(Unaudited)


	Quarter Ended				Nine Months Ended
	May 28, 2026		May 29, 2025		May 28, 2026		May 29, 2025

Net income	$	28,243	$	1,885	$	47,268	$	5,338

Other comprehensive income (loss), net of tax
Gains (losses) on derivative instruments	68		149		15		93
Unrealized gains (losses) on investments	(11)		(3)		(8)		(3)
Pension liability adjustments	(1)		—		(1)		(1)
Other comprehensive income (loss)	56		146		6		89
Total comprehensive income	$	28,299	$	2,031	$	47,274	$	5,427

See accompanying notes to consolidated financial statements.

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Micron Technology, Inc.

Consolidated Balance Sheets

(In millions, except par value amounts)

(Unaudited)


As of	May 28, 2026		August 28, 2025

Assets
Cash and cash equivalents	$	24,995	$	9,642
Short-term investments	1,027		665
Receivables	31,025		9,265
Inventories	8,567		8,355
Other current assets	1,123		914
Total current assets	66,737		28,841
Long-term marketable investments	4,106		1,629
Property, plant, and equipment	56,426		46,590
Operating lease right-of-use assets	683		736
Intangible assets	473		453
Deferred tax assets	700		616
Goodwill	1,150		1,150
Other noncurrent assets	3,837		2,783
Total assets	$	134,112	$	82,798

Liabilities and equity
Accounts payable and accrued expenses	$	15,521	$	9,649
Current debt	582		560
Other current liabilities	3,385		1,245
Total current liabilities	19,488		11,454
Long-term debt	5,140		14,017
Noncurrent operating lease liabilities	654		701
Noncurrent unearned government incentives	1,020		1,018
Other noncurrent liabilities	7,086		1,443
Total liabilities	33,388		28,633

Commitments and contingencies

Shareholders’ equity
Common stock, $0.10 par value, 3,000 shares authorized, 1,275 shares issued and 1,129 outstanding (1,266 shares issued and 1,122 outstanding as of August 28, 2025)	128		127
Additional capital	14,442		13,339
Retained earnings	94,682		48,583
Treasury stock, 146 shares held (144 shares as of August 28, 2025)	(8,502)		(7,852)
Accumulated other comprehensive income (loss)	(26)		(32)
Total equity	100,724		54,165
Total liabilities and equity	$	134,112	$	82,798

See accompanying notes to consolidated financial statements.

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Micron Technology, Inc.

Consolidated Statements of Changes in Equity

(In millions, except per share amounts)

(Unaudited)


	Quarter Ended May 28, 2026
	Common Stock			Additional Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
	Number of Shares	Amount

Balance as of February 26, 2026	1,274	$	127	$	14,092	$	66,824	$	(8,502)	$	(82)	$	72,459
Net income	—	—		—		28,243		—		—		28,243
Other comprehensive income (loss), net	—	—		—		—		—		56		56
Stock issued under equity compensation plans	2	1		(1)		—		—		—		—
Stock-based compensation expense	—	—		355		—		—		—		355
Repurchase of stock – withholdings on employee equity awards	(1)	—		(4)		(213)		—		—		(217)
Dividends and dividend equivalents declared ($0.15 per share)	—	—		—		(172)		—		—		(172)
Balance as of May 28, 2026	1,275	$	128	$	14,442	$	94,682	$	(8,502)	$	(26)	$	100,724


	Quarter Ended May 29, 2025
	Common Stock			Additional Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
	Number of Shares	Amount

Balance as of February 27, 2025	1,262	$	126	$	12,711	$	43,839	$	(7,852)	$	(191)	$	48,633
Net income	—	—		—		1,885		—		—		1,885
Other comprehensive income (loss), net	—	—		—		—		—		146		146
Stock issued under equity compensation plans	2	—		1		—		—		—		1
Stock-based compensation expense	—	—		253		—		—		—		253
Repurchase of stock – withholdings on employee equity awards	(1)	—		(5)		(34)		—		—		(39)
Dividends and dividend equivalents declared ($0.115 per share)	—	—		—		(131)		—		—		(131)
Balance as of May 29, 2025	1,263	$	126	$	12,960	$	45,559	$	(7,852)	$	(45)	$	50,748

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Micron Technology, Inc.

Consolidated Statements of Changes in Equity

(In millions, except per share amounts)

(Unaudited)


	Nine Months Ended May 28, 2026
	Common Stock			Additional Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
	Number of Shares	Amount

Balance as of August 28, 2025	1,266	$	127	$	13,339	$	48,583	$	(7,852)	$	(32)	$	54,165
Net income	—	—		—		47,268		—		—		47,268
Other comprehensive income (loss), net	—	—		—		—		—		6		6
Stock issued under equity compensation plans	12	1		178		—		—		—		179
Stock-based compensation expense	—	—		954		—		—		—		954
Repurchase of stock – repurchase program	—	—		—		—		(650)		—		(650)
Repurchase of stock – withholdings on employee equity awards	(3)	—		(29)		(733)		—		—		(762)
Dividends and dividend equivalents declared ($0.38 per share)	—	—		—		(436)		—		—		(436)
Balance as of May 28, 2026	1,275	$	128	$	14,442	$	94,682	$	(8,502)	$	(26)	$	100,724


	Nine Months Ended May 29, 2025
	Common Stock			Additional Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
	Number of Shares	Amount

Balance as of August 29, 2024	1,253	$	125	$	12,115	$	40,877	$	(7,852)	$	(134)	$	45,131
Net income	—	—		—		5,338		—		—		5,338
Other comprehensive income (loss), net	—	—		—		—		—		89		89
Stock issued under equity compensation plans	13	1		152		—		—		—		153
Stock-based compensation expense	—	—		722		—		—		—		722
Repurchase of stock – withholdings on employee equity awards	(3)	—		(29)		(262)		—		—		(291)
Dividends and dividend equivalents declared ($0.345 per share)	—	—		—		(394)		—		—		(394)
Balance as of May 29, 2025	1,263	$	126	$	12,960	$	45,559	$	(7,852)	$	(45)	$	50,748

See accompanying notes to consolidated financial statements.

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Micron Technology, Inc.

Consolidated Statements of Cash Flows

(In millions)

(Unaudited)


Nine Months Ended	May 28, 2026		May 29, 2025

Cash flows from operating activities
Net income	$	47,268	$	5,338
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense and amortization of intangible assets	6,862		6,203
Stock-based compensation	954		722
Change in operating assets and liabilities:
Receivables	(19,953)		(123)
Inventories	(212)		148
Accounts payable and accrued expenses	3,329		38
Other current liabilities	2,139		(681)
Other noncurrent liabilities	5,203		259
Other	112		(109)
Net cash provided by operating activities	45,702		11,795

Cash flows from investing activities
Expenditures for property, plant, and equipment	(19,602)		(10,199)
Purchases of available-for-sale securities	(4,072)		(1,203)
Proceeds from government incentives	2,989		1,294
Proceeds from maturities and sales of available-for-sale securities	1,233		1,249
Other	(236)		(30)
Net cash used for investing activities	(19,688)		(8,889)

Cash flows from financing activities
Repayments of debt	(9,380)		(3,604)
Repurchases of common stock - withholdings on employee equity awards	(762)		(290)
Repurchases of common stock - repurchase program	(650)		—
Payments of dividends to shareholders	(437)		(392)
Proceeds from issuance of debt	—		4,430
Other	583		70
Net cash provided by (used for) financing activities	(10,646)		214

Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash	8		(3)

Net increase in cash, cash equivalents, and restricted cash	15,376		3,117
Cash, cash equivalents, and restricted cash at beginning of period	9,646		7,052
Cash, cash equivalents, and restricted cash at end of period	$	25,022	$	10,169

Supplemental disclosure
Non-cash acquisitions of finance lease right-of-use assets	$	32	$	1,247

See accompanying notes to consolidated financial statements.

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Micron Technology, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(All tabular amounts in millions, except per share amounts)

(Unaudited)

Note 1. Significant Accounting Policies

For a discussion of our significant accounting policies, see Part II, Item 8. Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 1. Significant Accounting Policies of our Annual Report on Form 10-K for the year ended August 28, 2025. There have been no changes to our significant accounting policies since our Annual Report on Form 10-K for the year ended August 28, 2025.

Basis of Presentation

The accompanying consolidated financial statements include the accounts of Micron Technology, Inc. and our consolidated subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), consistent in all material respects with those applied in our Annual Report on Form 10-K for the year ended August 28, 2025.

In the opinion of our management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, consisting of a normal recurring nature, to fairly state the financial information set forth herein. Certain reclassifications have been made to prior-period amounts to conform to current-period presentation.

Our fiscal year is the 52- or 53-week period ending on the Thursday closest to August 31. Fiscal year 2026 contains 53 weeks and fiscal year 2025 contains 52 weeks. Our fourth quarter of fiscal year 2026 contains 14 weeks. All period references are to our fiscal periods unless otherwise indicated. These interim financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended August 28, 2025.

Note 2. Recently Issued Accounting Standards

In December 2023, the FASB issued ASU 2023-09 (ASC Topic 740), Improvements to Income Tax Disclosures. This ASU requires disaggregated income tax disclosures on the rate reconciliation and income taxes paid. This ASU will be effective for our annual reporting for 2026 on a prospective basis, with retrospective application permitted. Adoption of this new guidance will result in expanded disclosures in the Notes to Consolidated Financial Statements.

In November 2024, the FASB issued ASU 2024-03 (ASC Topic 220), Disaggregation of Income Statement Expenses. This ASU requires disclosure of certain expenses in the notes to the financial statements. This ASU will be effective for our annual reporting for 2028 on a prospective basis, with retrospective application permitted. Adoption of this new guidance will result in expanded disclosures in the Notes to Consolidated Financial Statements.

In September 2025, the FASB issued ASU 2025-06 (ASC Topic 350), Targeted Improvements to the Accounting for Internal-Use Software. This ASU makes targeted improvements to the accounting for internal-use software and will be effective for the first quarter of 2029, with early adoption permitted. This ASU provides for adoption on a prospective basis, with retrospective or modified retrospective application permitted. We are evaluating the timing and effects of our adoption of this new guidance on our financial statements.

In December 2025, the FASB issued ASU 2025-10 (ASC Topic 832), Accounting for Government Grants Received by Business Entities. This ASU establishes the accounting and presentation for government grants received by a business entity. The ASU will be effective for the first quarter of 2030, with early adoption permitted. This ASU provides for adoption either on a modified prospective, modified retrospective, or retrospective basis. We are evaluating the timing and effects of our adoption of this new guidance on our financial statements.

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Note 3. Variable Interest Entities

Certain third-party special purpose entities (the “Lease SPEs”) facilitate equipment lease financing transactions between us and various financial institutions. Neither we nor the financial institutions have an equity interest in the Lease SPEs, which are variable interest entities. The arrangements are financing vehicles and we do not bear any significant risks from variable interests with the Lease SPEs. We do not have the power to direct the activities of the Lease SPEs that most significantly impact their economic performance and, as such, we do not consolidate them. We had approximately $1.34 billion and $1.58 billion of financial lease liabilities and right-of-use assets under these arrangements as of May 28, 2026 and August 28, 2025, respectively.

Note 4. Cash and Investments

All of our short-term investments and long-term marketable investments were classified as available for sale as of the dates noted below. Cash and cash equivalents and the fair values of our available-for-sale securities, which approximated amortized costs, were as follows:


	As of May 28, 2026								As of August 28, 2025
	Cash and Cash Equivalents		Short-term Investments		Long-term Marketable Investments(1)		Total Fair Value		Cash and Cash Equivalents		Short-term Investments		Long-term Marketable Investments(1)		Total Fair Value

Cash	$	18,427	$	—	$	—	$	18,427	$	7,875	$	—	$	—	$	7,875
Level 1(2)
Money market funds	70		—		—		70		410		—		—		410
Level 2(3)
Certificates of deposit	6,180		6		—		6,186		1,292		6		—		1,298
Corporate bonds	68		844		2,982		3,894		23		559		1,047		1,629
Asset-backed securities	—		74		1,083		1,157		—		31		521		552
Commercial paper	247		50		—		297		33		26		—		59
Government securities	3		53		41		97		9		43		61		113
	24,995		$	1,027	$	4,106	$	30,128	9,642		$	665	$	1,629	$	11,936
Restricted cash(4)	27								4
Cash, cash equivalents, and restricted cash	$	25,022							$	9,646

*(1)*The maturities of long-term marketable investments primarily range from one to five years, except for asset-backed securities which are not due at a single maturity date.

(2)The fair value of Level 1 securities is measured based on quoted prices in active markets for identical assets.

*(3)*The fair value of Level 2 securities is measured using information obtained from pricing services, which obtain quoted market prices for similar instruments, non-binding market consensus prices that are corroborated by observable market data, or various other methodologies, to determine the appropriate value at the measurement date. We perform supplemental analysis to validate information obtained from these pricing services. No adjustments were made to the fair values indicated by such pricing information as of May 28, 2026 or August 28, 2025.

*(4)*Restricted cash is included in other current assets.

Gross realized gains and losses from sales of available-for-sale securities were not material for any period presented.

Non-marketable Equity Investments

In addition to the amounts included in the table above, we had $185 million and $194 million of non-marketable equity investments without a readily determinable fair value that were included in other noncurrent assets as of May 28, 2026 and August 28, 2025, respectively. Our non-marketable equity investments are recorded at cost

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minus impairment, if any, adjusted for qualifying observable price changes. Subsequent to May 28, 2026, we purchased non-marketable equity securities in a leading AI company.

Note 5. Receivables


As of	May 28, 2026		August 28, 2025

Trade receivables	$	26,894	$	7,163
Government incentives	3,408		1,572
Income and other taxes	517		436
Other	206		94
	$	31,025	$	9,265

Note 6. Inventories


As of	May 28, 2026		August 28, 2025

Finished goods	$	621	$	1,094
Work in process	6,960		6,401
Raw materials and supplies	986		860
	$	8,567	$	8,355

Note 7. Property, Plant, and Equipment


As of	May 28, 2026		August 28, 2025

Land	$	420	$	420
Buildings	23,741		22,173
Equipment(1)	88,113		79,934
Construction in progress(2)	10,935		5,518
Software	1,782		1,651
	124,991		109,696
Accumulated depreciation	(68,565)		(63,106)
	$	56,426	$	46,590

*(1)*Includes costs related to equipment not placed into service of $4.20 billion as of May 28, 2026 and $4.05 billion as of August 28, 2025.

*(2)*Primarily includes building-related construction and tool installation.

On November 19, 2025, we finalized an incentive arrangement for the expansion of our Singapore manufacturing facilities, followed by a second arrangement on April 17, 2026, for the expansion of our Singapore R&D. Under both arrangements, we will receive government support for qualified capital spending and labor costs. The incentive arrangements may be subject to reduction, recapture, or termination if certain conditions are not met. Terms and conditions are subject to the confidentiality provisions of the incentive arrangements.

In March 2026, we completed the acquisition of a wafer fabrication facility in Tongluo, Miaoli County, Taiwan, from Powerchip Semiconductor Manufacturing Corporation for total cash consideration of $1.8 billion.

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Note 8. Accounts Payable and Accrued Expenses


As of	May 28, 2026		August 28, 2025

Accounts payable	$	3,649	$	3,132
Property, plant, and equipment	6,914		4,391
Income and other taxes	2,795		628
Salaries, wages, and benefits	1,884		1,116
Other	279		382
	$	15,521	$	9,649

Note 9. Debt


	As of May 28, 2026										As of August 28, 2025
					Net Carrying Amount						Net Carrying Amount
	Stated Rate		Effective Rate		Current		Long-Term		Total		Current		Long-Term		Total

2031 Notes	5.300	%	5.41	%	$	—	$	261	$	261	$	—	$	995	$	995
2032 Green Bonds	2.703	%	2.77	%	—		996		996		—		996		996
2032 Notes	5.650	%	5.79	%	—		70		70		—		496		496
2033 A Notes	5.875	%	5.96	%	—		175		175		—		746		746
2033 B Notes	5.875	%	6.01	%	—		213		213		—		892		892
2035 A Notes	5.800	%	5.90	%	—		135		135		—		992		992
2035 B Notes	6.050	%	6.14	%	—		219		219		—		1,241		1,241
2041 Notes	3.366	%	3.41	%	—		497		497		—		497		497
2051 Notes	3.477	%	3.52	%	—		486		486		—		496		496
2028 Notes	N/A		N/A		—		—		—		—		540		540
2029 Term Loan A	N/A		N/A		—		—		—		—		982		982
2029 A Notes	N/A		N/A		—		—		—		—		698		698
2029 B Notes	N/A		N/A		—		—		—		—		1,168		1,168
2030 Notes	N/A		N/A		—		—		—		—		794		794
Finance lease obligations	N/A		4.72	%	582		2,088		2,670		560		2,484		3,044
					$	582	$	5,140	$	5,722	$	560	$	14,017	$	14,577

As of May 28, 2026, the fair value of our outstanding debt instruments approximated the carrying value of our debt. The fair value of our debt instruments was estimated based on Level 2 inputs, including the trading price of our notes when available, discounted cash flows, and interest rates based on similar debt issued by parties with credit ratings similar to ours.

Debt Activity

The table below presents the effects of debt prepayment activity in the first nine months of 2026:

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	Transaction Date	Decrease in Principal		Decrease in Carrying Value		Decrease in Cash

Prepayments
2028 Notes	October 24, 2025	$	(542)	$	(541)	$	(562)
2029 B Notes	October 24, 2025	(1,159)		(1,168)		(1,276)
2029 Term Loan A	October 27, 2025	(984)		(982)		(984)
2051 Notes	January 23, 2026	(10)		(10)		(7)
2029 A Notes	February 20, 2026	(700)		(698)		(726)
2030 Notes	February 23, 2026	(796)		(794)		(816)
2031 Notes	April 3, 2026	(738)		(734)		(773)
2032 Notes	April 3, 2026	(429)		(426)		(456)
2033 A Notes	April 3, 2026	(574)		(571)		(616)
2033 B Notes	April 3, 2026	(685)		(679)		(734)
2035 A Notes	April 3, 2026	(864)		(857)		(921)
2035 B Notes	April 3, 2026	(1,030)		(1,022)		(1,114)
		$	(8,511)	$	(8,482)	$	(8,985)

In connection with these prepayments, we recognized losses in other non-operating income (expense) of $323 million and $500 million for the third quarter and first nine months of 2026, respectively.

Revolving Credit Facility

On May 6, 2026, we reduced our borrowing capacity under the Revolving Credit Facility from $3.50 billion to $2.00 billion. As of May 28, 2026, no amounts were outstanding under the Revolving Credit Facility. Borrowing under the Revolving Credit Facility would generally bear interest at a rate equal to adjusted term SOFR plus 0.875% to 1.50%, depending on our corporate credit ratings. Any amounts outstanding under the Revolving Credit Facility would mature on March 12, 2030 and amounts borrowed may be prepaid without penalty. Any obligations under the Revolving Credit Facility would be unsecured.

The Revolving Credit Facility requires us to maintain, on a consolidated basis, a net leverage ratio of total net indebtedness to adjusted EBITDA, as defined in the Revolving Credit Facility agreement and calculated as of the last day of each fiscal quarter, not to exceed 3.25 to 1.00, subject to a temporary four fiscal quarter increase in such maximum ratio to 3.75 to 1.00 following certain material acquisitions.

Note 10. Contingencies

We are currently a party to legal actions other than those described below arising from the normal course of business, none of which are expected to have a material adverse effect on our business, results of operations, or financial condition.

Patent Matters

As is typical in the semiconductor and other high-tech industries, from time to time, others have asserted, and may in the future assert, that our products or manufacturing processes infringe upon their intellectual property rights. A description of certain claims is below.

On April 28, 2021, Netlist, Inc. (“Netlist”) filed two patent infringement actions against Micron, Micron Semiconductor Products, Inc. (“MSP”), and Micron Technology Texas, LLC (“MTEC”) in the U.S. District Court for the Western District of Texas (“W.D. Tex.”). The first complaint alleges that one U.S. patent is infringed by certain of our non-volatile dual in-line memory modules. The second complaint alleges that three U.S. patents are infringed by certain of our load-reduced dual in-line memory modules (“LRDIMMs”). Each complaint seeks injunctive relief, damages, attorneys’ fees, and costs. On March 31, 2022, Netlist filed a patent infringement complaint against Micron and Micron Semiconductor (Deutschland) GmbH (“MSG”) in Düsseldorf Regional Court alleging that two German

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patents are infringed by certain of our LRDIMMs. The complaint seeks damages, costs, and injunctive relief. In rulings issued on March 7, 2024 and November 7, 2024, the Federal Patent Court in Germany declared both patents invalid. Netlist appealed those rulings. On May 21, 2026, the appeals court affirmed the ruling of invalidity of the first patent. The appeal regarding the second patent has not yet been decided.

On June 10, 2022, Netlist filed a patent infringement complaint against Micron, MSP, and MTEC in the U.S. District Court for the Eastern District of Texas (“E.D. Tex.”) alleging that six U.S. patents are infringed by certain of our memory modules and HBM products. On August 1, 2022, Netlist filed a second patent infringement complaint against the same defendants in E.D. Tex. alleging that one U.S. patent is infringed by certain of our LRDIMMs. On August 15, 2022, Netlist amended the second complaint to assert that two additional U.S. patents are infringed by certain of our LRDIMMs. The complaints in E.D. Tex. seek injunctive relief, damages, and attorneys’ fees. On May 23, 2024, following a four-day trial regarding the second complaint filed by Netlist in the E.D. Tex., a jury rendered a verdict that Micron’s memory modules infringe two asserted patents—U.S. Patent No. 7,619,912 (“the ‘912 patent”) and U.S. Patent No. 11,093,417 (“the ‘417 patent”)—and found that Micron should pay $425 million for infringement of the ‘912 patent and $20 million for infringement of the ‘417 patent. On July 9, 2025, Micron filed a notice that it will appeal the judgment. On April 17, 2024, the Patent Trial and Appeal Board (“PTAB”) of the United States Patent and Trademark Office (“USPTO”) issued a final written decision (“FWD”) finding unpatentable the sole asserted claim of the ‘912 patent. On September 10, 2024, Netlist filed a notice that it will appeal the ruling that the ‘912 patent is unpatentable to the U.S. Court of Appeals for the Federal Circuit (“Federal Circuit”). On July 30, 2024, the USPTO issued a FWD finding unpatentable all asserted claims of the ‘417 patent. On December 10, 2024, Netlist filed a notice that it will appeal the ruling that the ‘417 patent is unpatentable to the Federal Circuit. In the case of each of the ‘912 and ‘417 patents, if the United States Court of Appeals for the Federal Circuit affirms the FWD, then the affirmed FWD will preclude any pending actions asserting infringement of such patent (including enforcement of the infringement verdict).

On May 19, 2025, Netlist filed a complaint against Micron, MSP, and MTEC in E.D. Tex. alleging that one U.S. patent is infringed by our HBM products. On July 8, 2025, Netlist amended the complaint to allege that one additional U.S. patent is infringed by certain of our DIMMs. On March 6, 2026, the E.D. Tex. transferred the case to the United States District Court for the District of Delaware (“D. Del.”) pursuant to a motion by Micron to dismiss or transfer for improper venue. On July 28, 2025, Netlist filed an additional complaint against Micron, MSP, and MTEC in E.D. Tex. alleging that one U.S. patent is infringed by certain of our DIMMs. On April 1, 2026, the E.D. Tex. transferred the additional case to D. Del. These complaints seek damages, attorneys’ fees, and other equitable relief.

On January 23, 2023, BeSang Inc. filed a patent infringement complaint against Micron in E.D. Tex. The complaint alleges that one U.S. patent is infringed by certain of our 3D NAND and SSD products. The complaint seeks an injunction, damages, attorneys’ fees, and costs. On September 17, 2025, the District Court issued a judgment that the accused products do not infringe the asserted patent. On October 17, 2025, BeSang filed a notice of appeal of the District Court’s judgment.

On November 9, 2023, Yangtze Memory Technologies Company, Ltd. (“YMTC”) filed a patent infringement complaint against Micron and one of its subsidiaries in the U.S. District Court for the Northern District of California (“N.D. Cal.”). The complaint alleges that eight U.S. patents are infringed by certain of our 3D NAND products. The complaint seeks an injunction, damages, attorneys’ fees, and costs. On January 22, 2024, Micron Semiconductor (Shanghai) Co., Ltd. (“MSS”) was served with three patent infringement complaints filed by YMTC in Beijing Intellectual Property Court and on February 27, 2024, Micron was served with the same complaints. The complaints assert that Micron and MSS infringed three Chinese patents owned by YMTC by importing, selling, offering for sale, and assisting others to sell certain 3D NAND products and SSDs in China. The complaint seeks an injunction, damages, attorneys’ fees, and costs. On July 12, 2024, YMTC filed a second complaint against Micron and its subsidiary in N.D. Cal. The second complaint alleges that eleven U.S. patents are infringed by certain of our 3D NAND and DDR5 DRAM products. The complaint seeks an injunction, damages, attorneys’ fees, and costs. On September 11, 2024, MSS was served with five patent infringement complaints filed by YMTC in Shanghai Intellectual Property Court. The complaints assert that Micron and MSS infringed five Chinese patents owned by YMTC by importing, selling, offering for sale, and assisting others to sell certain 3D NAND products and SSDs in China. The complaint seeks an injunction, damages, attorneys’ fees, and costs.

On October 6, 2025, YMTC filed several patent infringement complaints against Micron and certain of its subsidiaries alleging that the Company’s manufacture, importation, sale, offering for sale, and/or assisting others to

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sell certain NAND and DRAM products infringe certain patents owned by YMTC. Specifically, YMTC filed the following complaints: A patent infringement complaint against Micron, MSP, and MTEC in E.D. Tex. alleging that seven patents are infringed by certain of our 3D NAND products and one patent is infringed by certain of our LPDRAM products; a patent infringement complaint in the London Chancery Division of the English High Court against Micron and Micron Europe Limited (“MEL”) alleging that three patents are infringed by certain of our NAND and DRAM products; three complaints against Micron and various combinations of subsidiaries, including MEL, MSP, MSG, and Micron Semiconductor France SAS in the Unified Patent Court in Dusseldorf, Germany, alleging that three patents are infringed by certain of our 3D NAND and LPDRAM products; and five complaints against Micron, MEL, and MSG in Munich Regional Court in Munich, Germany, alleging that five patents are infringed by certain of our 3D NAND products. Each of the complaints filed against us by YMTC on October 6, 2025, seeks an injunction, attorneys’ fees, damages, and costs.

On June 30, 2025, Advanced Memory Technologies, LLC (“AMT”) filed a patent infringement complaint against Micron in W.D. Tex. alleging that four U.S. patents are infringed by certain of our DRAM and NAND products. On November 4, 2025, AMT amended the complaint to allege that a fifth patent is infringed by certain of our DRAM products. The complaint seeks an injunction, damages, attorneys’ fees, and costs.

On March 6, 2026, Nextech Semiconductor, LLC (“Nextech”) filed a patent infringement complaint against Micron and MSP in W.D. Tex. alleging that six U.S. patents are infringed by certain of our DRAM, NAND, and SSD products. The complaint seeks an injunction, damages, attorneys’ fees and costs.

The above lawsuits pertain to substantially all of our DRAM, NAND, and other memory and storage products we manufacture, which account for substantially all of our revenue.

Securities Class Action Matters

On January 9, 2025, a putative class action complaint was filed against Micron and certain officers in the U.S. District Court for the Southern District of Florida for alleged violations of the Securities Exchange Act of 1934. On April 3, 2025, the case was transferred to the United States District Court for the District of Idaho (“D. Idaho”), and on May 23, 2025, an amended complaint was filed in D. Idaho. The amended complaint alleged that defendants made materially false or misleading statements regarding industry supply and demand dynamics and the demand for Micron's products. On February 3, 2026, the court dismissed the amended complaint but granted plaintiffs leave to file a further amended complaint. On April 3, 2026, the plaintiffs voluntarily dismissed the case.

Shareholder Derivative Matters

On February 20 and 21, 2025, two shareholder derivative complaints were filed against certain directors and officers of Micron, allegedly on behalf of and for the benefit of Micron, in D. Idaho. The complaints alleged violations of the Securities Exchange Act of 1934, breach of fiduciary duty, unjust enrichment, insider trading, abuse of control, and waste of corporate assets and were based on substantially the same statements asserted in the securities class action. On April 28, 2025, the complaints were consolidated and on May 14, 2025, the consolidated action was stayed. Following the dismissal of the securities class action, the consolidated action was dismissed.

On September 8, 2025, a substantially similar shareholder derivative complaint was filed in D. Del. On April 24, 2026, the action was dismissed.

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Other Matters

On June 7, 2025, YMTC filed a complaint against Micron and DCI Group AZ, LLC in the U.S. District Court for the District of Columbia. The complaint alleges that the defendants engaged in false advertising, product disparagement, and unfair competition regarding YMTC’s 3D NAND flash products in violation of the Lanham Act. The complaint seeks injunctive relief, damages, disgorgement of profits, attorneys’ fees, and costs.

On January 16, 2026, Neighbors for a Better Micron and Jobs to Move America filed a petition in the Supreme Court of New York against Micron, one of our subsidiaries, Onondaga County Industrial Development Agency (“OCIDA”), and certain other state and local government entities. The petition challenges certain aspects of OCIDA’s environmental review of the Company’s planned construction of up to four fabs in Clay, New York, and seeks a judgment to annul, vacate, and void all permits, approvals, and findings issued by the named government entities related to the project. The petition further seeks costs and attorneys’ fees.

In the normal course of business, we are a party to a variety of agreements pursuant to which we may be obligated to indemnify another party. It is not possible to predict the maximum potential amount of future payments under these types of agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. Historically, our payments under these types of agreements have not had a material adverse effect on our business, results of operations, or financial condition.

Contingency Assessment

We are unable to predict the outcome of any of the matters noted above and cannot make a reasonable estimate of the potential loss or range of possible losses. A determination that our products or manufacturing processes infringe the intellectual property rights of others or entering into a license agreement covering such intellectual property could result in significant liability and/or require us to make material changes to our products and/or manufacturing processes. Any of the foregoing, as well as the resolution of any other legal matter noted above, could have a material adverse effect on our business, results of operations, or financial condition.

Note 11. Equity

Common Stock Repurchases

Our Board of Directors has authorized the discretionary repurchase of up to $10 billion of our outstanding common stock through open-market purchases, block trades, privately-negotiated transactions, derivative transactions, and/or pursuant to Rule 10b5-1 trading plans. The repurchase authorization has no expiration date, does not obligate us to acquire any common stock, and is subject to market conditions, restrictions applicable under our CHIPS Act direct funding agreements, and our ongoing determination of the best use of available cash. No shares were repurchased in the third quarter of 2026. We repurchased 2.5 million shares of our common stock for $650 million in first nine months of 2026. Through May 28, 2026, we had repurchased an aggregate of $7.84 billion under the authorization. Amounts repurchased are included in treasury stock.

Dividends

We declared and paid dividends of $0.115 per share in the first and second quarters of 2026 and $0.15 per share in the third quarter of 2026. On June 24, 2026, our Board of Directors declared a quarterly dividend of $0.15 per share, payable in cash on July 21, 2026, to shareholders of record as of the close of business on July 6, 2026.

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Note 12. Derivative Instruments


	Notional or Contractual Amount		Fair Value(1) of
Assets(2)	Liabilities(3)

As of May 28, 2026
Derivative instruments with hedge accounting designation
Cash flow currency hedges	$	4,096	$	7	$	(106)
Cash flow commodity hedges	406		105		(7)
Fair value currency hedges	5,568		19		—

Derivative instruments without hedge accounting designation
Non-designated currency hedges	12,431		15		(48)
			$	146	$	(161)

As of August 28, 2025
Derivative instruments with hedge accounting designation
Cash flow currency hedges	$	3,271	$	41	$	(64)
Cash flow commodity hedges	393		19		(20)
Fair value currency hedges	3,049		1		(10)

Derivative instruments without hedge accounting designation
Non-designated currency hedges	3,477		3		(18)
			$	64	$	(112)

*(1)*Forward and swap contracts are measured at fair value based on market-based observable inputs, including market spot and forward rates, interest rates, and credit-risk spreads (Level 2).

*(2)*Included in receivables and other noncurrent assets.

*(3)*Included in accounts payable and accrued expenses and other noncurrent liabilities.

Derivative Instruments with Hedge Accounting Designation

Cash Flow Hedges: We utilize forward contracts that generally mature within two years designated as cash flow hedges to minimize our exposure to changes in currency exchange rates or commodity prices for certain capital expenditures and manufacturing costs.

Fair Value Hedges: We utilize currency forward contracts that generally mature within one year designated as fair value hedges to minimize our exposure to changes in currency exchange rates for non-U.S.-dollar-denominated cash and investments in debt securities. The fair value of our hedged cash and investments in debt securities was $5.54 billion and $3.05 billion as of May 28, 2026 and August 28, 2025, respectively. The changes in the fair values of derivatives designated as fair value hedges and the offsetting changes in the underlying fair values of the hedged items are both recognized in earnings.

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Derivative Instruments without Hedge Accounting Designation

Currency Derivatives: We generally utilize a rolling hedge strategy with currency forward contracts that mature within one year to hedge our exposures of monetary assets and liabilities from changes in currency exchange rates. At the end of each reporting period, monetary assets and liabilities denominated in currencies other than the U.S. dollar are remeasured into U.S. dollars and the associated outstanding forward contracts are marked to market. Realized and unrealized gains and losses on derivative instruments without hedge accounting designation, as well as the changes in the underlying monetary assets and liabilities from changes in currency exchange rates, are included in other non-operating income (expense), net.

Gains and losses from our derivative instruments were not material for the periods presented.

Note 13. Equity Compensation Plans

As of May 28, 2026, 48 million shares of our common stock were available for future awards under our equity compensation plans, including 7 million shares approved for issuance under our employee stock purchase plan (“ESPP”).

Restricted Stock and Restricted Stock Units (“Restricted Stock Awards”)


Nine Months Ended	May 28, 2026		May 29, 2025

Restricted stock award shares granted	7		11
Weighted-average grant-date fair value per share	$	227.18	$	100.25

Employee Stock Purchase Plan (“ESPP”)

Employees purchased 2 million shares in each six-month ESPP offering period that ended in the second quarter of 2026 and 2025 at a share price of $92.77 and $78.63, respectively.

Stock-based Compensation Expense

Stock-based compensation expense recognized in our statements of operations is presented below. Stock-based compensation expense of $132 million and $96 million was capitalized and remained in inventory as of May 28, 2026 and August 28, 2025, respectively.


	Quarter Ended				Nine Months Ended
	May 28, 2026		May 29, 2025		May 28, 2026		May 29, 2025

Stock-based compensation expense by caption
Cost of goods sold	$	143	$	115	$	371	$	294
Research and development	129		89		355		254
Selling, general, and administrative	69		59		192		165
	$	341	$	263	$	918	$	713

Stock-based compensation expense by type of award
Restricted stock awards	$	309	$	239	$	829	$	643
ESPP	32		24		89		70
	$	341	$	263	$	918	$	713

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As of May 28, 2026, $2.13 billion of total unrecognized compensation costs for unvested awards, before the effect of any future forfeitures, was expected to be recognized through the third quarter of 2030, resulting in a weighted-average period of 1.2 years.

Note 14. Revenue and Customer Contract Liabilities

Revenue by Technology


	Quarter Ended				Nine Months Ended
	May 28, 2026		May 29, 2025		May 28, 2026		May 29, 2025

DRAM	$	31,328	$	7,071	$	60,908	$	19,594
NAND	9,943		2,155		17,683		6,251
Other (primarily NOR)	185		75		368		218
	$	41,456	$	9,301	$	78,959	$	26,063

See Item 1. Financial Statements, Notes to Consolidated Financial Statements, Note 17. Segment and Other Information for disclosure of disaggregated revenue by market segment.

We recently executed certain strategic customer agreements, including agreements executed subsequent to May 28, 2026. These agreements are structured as take-or-pay agreements, with binding commitments for specific volumes over the multi-year contract terms and include contractually enforceable volumes. Pricing for most agreements is either fixed, or is subject to minimum and maximum pricing. A minority of the agreements do not have any fixed pricing or price bands, as pricing for those agreements is subject to market conditions.

Our remaining performance obligations disclosure is based on minimum committed volumes and minimum pricing and is not expected to be indicative of future revenue under these contracts. Agreements without fixed pricing or price bands are not included in the remaining performance obligations disclosure. As a practical expedient, we have excluded contracts that have an original term of one year or less from our remaining performance obligations disclosure.

As of May 28, 2026, the transaction price allocated to our remaining performance obligations was approximately $5 billion, of which $422 million has been recognized as contract liabilities. Contract liabilities primarily consisted of customer deposits associated with strategic customer agreements for which revenue has not yet been recognized and are primarily included in other noncurrent liabilities. As of August 28, 2025, our remaining performance obligations were not material. Approximately one-third of the remaining performance obligations as of May 28, 2026 are expected to be recognized as revenue over the next twelve months.

As of May 28, 2026 and August 28, 2025, other current liabilities included $3.32 billion and $1.19 billion, respectively, for estimates of consideration payable to customers, including pricing adjustments and returns.

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Note 15. Income Taxes

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


	Quarter Ended						Nine Months Ended
	May 28, 2026			May 29, 2025			May 28, 2026			May 29, 2025

Income before taxes	$	33,212		$	2,113		$	55,433		$	6,023
Income tax (provision) benefit	(4,978)			(235)			(8,178)			(695)
Effective tax rate	15.0		%	11.1		%	14.8		%	11.5		%

The change in our effective tax rate for the third quarter and first nine months of 2026, as compared to the corresponding periods 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.

Other noncurrent liabilities included $5.79 billion and $648 million related to income taxes payable as of May 28, 2026 and August 28, 2025, respectively.

Note 16. Earnings Per Share


	Quarter Ended				Nine Months Ended
	May 28, 2026		May 29, 2025		May 28, 2026		May 29, 2025

Net income – Basic and Diluted	$	28,243	$	1,885	$	47,268	$	5,338

Weighted-average common shares outstanding – Basic	1,128		1,118		1,126		1,114
Dilutive effect of equity compensation plans	17		7		16		9
Weighted-average common shares outstanding – Diluted	1,145		1,125		1,142		1,123

Earnings per share
Basic	$	25.03	$	1.69	$	41.97	$	4.79
Diluted	24.67		1.68		41.40		4.75

Antidilutive potential common shares excluded from the computation of diluted earnings per share, that could dilute basic earnings per share in the future, were not material for the third quarter or first nine months of 2026 and were 7 million shares and 10 million shares for the third quarter and first nine months of 2025, respectively.

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Note 17. Segment and Other Information

Segment information reported herein is consistent with the way our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), assesses the performance of our segments based on segment revenue, cost of goods sold, operating expenses, and operating income. The segment information reported herein is regularly provided to and reviewed and evaluated by our CODM to budget, forecast, and decide how to allocate resources for capital investments, human capital, and other strategic investments across our segments.

We have the following four business units, which are based on market segments and our reportable segments:

Cloud Memory Business Unit (“CMBU”):** Focused on memory solutions for large hyperscale cloud customers, and HBM for all data center customers.
Core Data Center Business Unit (“CDBU”):** Focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers.
Mobile and Client Business Unit (“MCBU”):** Focused on memory and storage solutions for the mobile and client segments.
Automotive and Embedded Business Unit (“AEBU”):** Focused on memory and storage solutions for the automotive, industrial, and consumer segments.

Our other operations do not meet the thresholds of a reportable segment and are reported under All Other. Certain operating expenses directly associated with the activities of a specific segment are charged to that segment. Other indirect operating income and expenses are generally allocated to segments based on their respective percentage of cost of goods sold or forecasted wafer production. Certain income and expenses are not allocated to segments because our CODM does not consider these amounts in the assessment of the performance of our segments. Substantially all of the unallocated amounts are related to stock-based compensation. We do not identify or report internally our assets (other than goodwill) or capital expenditures by segment, nor do we allocate gains and losses from equity method investments, interest, other non-operating income or expense items, or taxes to segments.

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Quarter Ended May 28, 2026	CMBU		CDBU		MCBU		AEBU		All Other		Unallocated		Total

Revenue	$	13,769	$	11,524	$	11,521	$	4,634	$	8	$	—	$	41,456
Cost of goods sold	2,278		1,537		1,463		975		4		143		6,400
Gross margin	11,491		9,987		10,058		3,659		4		(143)		35,056

Research and development	592		391		107		96		—		130		1,316
Selling, general, and administrative	108		79		81		70		—		69		407
Other operating (income) expense, net	(2)		(2)		(3)		—		1		21		15
Operating income	$	10,793	$	9,519	$	9,873	$	3,493	$	3	$	(363)	$	33,318


Quarter Ended May 29, 2025	CMBU		CDBU		MCBU		AEBU		All Other		Unallocated		Total

Revenue	$	3,386	$	1,530	$	3,255	$	1,127	$	3	$	—	$	9,301
Cost of goods sold	1,415		956		2,467		837		3		115		5,793
Gross margin	1,971		574		788		290		—		(115)		3,508

Research and development	337		223		201		114		1		89		965
Selling, general, and administrative	61		45		105		49		(1)		59		318
Other operating (income) expense, net	—		(1)		—		1		(2)		58		56
Operating income	$	1,573	$	307	$	482	$	126	$	2	$	(321)	$	2,169


Nine Months Ended May 28, 2026	CMBU		CDBU		MCBU		AEBU		All Other		Unallocated		Total

Revenue	$	26,802	$	19,590	$	23,487	$	9,062	$	18	$	—	$	78,959
Cost of goods sold	6,097		4,155		5,090		2,776		13		371		18,502
Gross margin	20,705		15,435		18,397		6,286		5		(371)		60,457

Research and development	1,628		1,040		409		302		—		358		3,737
Selling, general, and administrative	274		177		263		182		—		192		1,088
Other operating (income) expense, net	(1)		—		(1)		—		—		45		43
Operating income	$	18,804	$	14,218	$	17,726	$	5,802	$	5	$	(966)	$	55,589


Nine Months Ended May 29, 2025	CMBU		CDBU		MCBU		AEBU		All Other		Unallocated		Total

Revenue	$	8,981	$	5,652	$	8,099	$	3,319	$	12	$	—	$	26,063
Cost of goods sold	4,025		3,072		6,260		2,579		10		298		16,244
Gross margin	4,956		2,580		1,839		740		2		(298)		9,819

Research and development	851		644		671		330		1		254		2,751
Selling, general, and administrative	146		147		290		144		(1)		165		891
Other operating (income) expense, net	—		—		1		1		1		58		61
Operating income	$	3,959	$	1,789	$	877	$	265	$	1	$	(775)	$	6,116

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Depreciation and amortization expense included in operating income was as follows:


	Quarter Ended				Nine Months Ended
	May 28, 2026		May 29, 2025		May 28, 2026		May 29, 2025

CMBU	$	780	$	548	$	2,291	$	1,600
CDBU	550		361		1,534		1,193
MCBU	678		877		2,005		2,361
AEBU	353		306		1,024		1,040
All Other	2		2		5		5
Unallocated	1		—		3		4
	$	2,364	$	2,094	$	6,862	$	6,203

Revenue from one customer was 10% and 16% (primarily included in the CMBU segment) of total revenue for the first nine months of 2026 and 2025, respectively.

As of May 28, 2026 and August 28, 2025, CMBU, CDBU, MCBU, and AEBU had goodwill of $654 million, $109 million, $284 million, and $103 million, respectively.

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