Financial Trends -- 10/10
Textbook acceleration on every axis. Revenue YoY accelerated four straight quarters (+38.3% to
+345.7%) with the magnitude of acceleration itself rising. Non-GAAP gross margin expanded to 84.9%
(+4,684 bps YoY, +6,490 bps from trough); non-GAAP operating margin went 3.5% to 81.2%. FCF
(OCF-capex) reached $17.6B (42.4% margin) despite capex ramping to ~$7.8B/qtr. Share count is
essentially flat. No penalty modifiers trigger. The only honest caveat is cyclicality -- this is the
top of an extraordinary up-cycle, so the rate of acceleration mechanically cannot persist -- but the
dimension scores the realized and currently-guided trend, which is as strong as the rubric allows.
Weight: 25%
Non-GAAP GM
84.9%
+4,684 bps YoY | Expanding
FCF
$17.6B
42.4% margin | Accelerating
Share Count
Flat
~1%/yr dilution | No penalty
Quarterly Metrics (8 quarters, $M unless noted)
| Metric | FY24Q4 | FY25Q1 | FY25Q2 | FY25Q3 | FY25Q4 | FY26Q1 | FY26Q2 | FY26Q3 |
|---|---|---|---|---|---|---|---|---|
| DRAM rev | $5,326 | $6,400 | $6,123 | $7,071 | $8,984 | $10,812 | $18,768 | $31,328 |
| NAND rev | $2,365 | $2,241 | $1,855 | $2,155 | $2,252 | $2,743 | $4,997 | $9,943 |
| Total revenue | $7,750 | $8,709 | $8,053 | $9,301 | $11,315 | $13,643 | $23,860 | $41,456 |
| Rev YoY | — | — | +38.3% | +36.6% | +46.0% | +56.7% | +196.3% | +345.7% |
| GM% (Non-GAAP) | 36.5% | 39.5% | 37.9% | 39.0% | 45.7% | 56.8% | 74.9% | 84.9% |
| OM% (Non-GAAP) | 22.5% | 27.5% | 24.9% | 26.8% | 35.0% | 47.0% | 69.0% | 81.2% |
| Non-GAAP NI | $1,342 | $2,037 | $1,783 | $2,181 | $3,469 | $5,482 | $14,021 | $28,857 |
| FCF (OCF-capex) | $285 | $38 | ($113) | $1,671 | $72 | $3,022 | $5,516 | $17,562 |
| FCF margin | 3.7% | 0.4% | -1.4% | 18.0% | 0.6% | 22.2% | 23.1% | 42.4% |
Sustained acceleration: revenue YoY +38.3% to +345.7% over four straight quarters.
After a brief FY25Q2/Q3 plateau (trough +36.6%), the YoY rate has accelerated for four consecutive
quarters and the magnitude of acceleration is itself increasing -- driven by the AI/HBM up-cycle and
the data-center DRAM ramp. Non-GAAP gross margin has expanded every quarter for six consecutive
quarters, from 36.5% to 84.9%.
Annual Financial Summary (FY ends late Aug / early Sep, $M)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| DRAM rev | $20,039 | $22,386 | $10,978 | $17,603 | $28,578 |
| NAND rev | $7,007 | $7,811 | $4,206 | $7,227 | $8,503 |
| Total revenue | $27,705 | $30,758 | $15,540 | $25,111 | $37,378 |
| Rev YoY | — | +11.0% | -49.5% | +61.6% | +48.9% |
| GM% (Non-GAAP) | 39.7% | 45.9% | -7.7% | 23.7% | 40.9% |
| OM% (Non-GAAP) | 27.7% | 33.4% | -31.0% | 7.7% | 29.0% |
| Non-GAAP NI | $6,976 | $9,475 | ($4,862) | $1,472 | $9,470 |
| Adj. EBITDA | $13,973 | $17,426 | $2,927 | $9,656 | $19,126 |
| FCF (OCF-capex) | $2,546 | $3,114 | ($6,117) | $121 | $1,668 |
| Wtd-avg shares (M) | 1,120 | 1,112 | 1,093 | 1,105 | 1,116 |
Key trends
- Cyclical trough-to-peak in five years: Revenue fell -49.5% to $15.5B in the FY2023 memory-cycle trough (negative GM, OI, and FCF), recovered through FY2024-25, and has inflected into a structural AI/HBM up-cycle; FY26 is on pace for ~$129B on management's implied full-year guide
- Margins from deeply negative to record: Non-GAAP gross margin swung from -7.7% (FY2023) to 84.9% in the latest quarter; non-GAAP operating margin from -31.0% to 81.2%
- FCF recovered off a -$6.1B trough: FCF was -$6,117M in FY2023, back to positive $1,668M in FY2025, and $17.6B in FY26Q3 alone
- Share count essentially flat: Weighted-average shares 1,120M (FY21) to 1,116M (FY25), only ~1%/yr ordinary stock-comp dilution -- far below the 10% penalty threshold
Segment Revenue by Business Unit (FY26Q3, $M)
Revenue by Technology (FY26Q3, $M)
FCF decisively positive and sharply accelerating. FCF (OCF-capex)
reached $17.6B in FY26Q3 at a 42.4% margin -- versus roughly breakeven a year prior -- despite capex
ramping to ~$7.8B/qtr. Adjusted FCF was $18.3B.
The balance sheet is net cash ~$24.4B with a BBB+ rating (third upgrade), and debt is being reduced.
Score Rationale
Score of 10/10 reflects a textbook high-quality acceleration profile. No penalty modifiers applied.
Supports 10/10:
- Revenue YoY accelerating four straight quarters (+38.3% to +345.7%), with the magnitude of acceleration itself rising
- Non-GAAP gross margin expanding far beyond +100 bps (+4,684 bps YoY, +6,490 bps from trough) to 84.9%
- Non-GAAP operating margin from 3.5% to 81.2% over the window
- FCF (OCF-capex) large, positive, and accelerating -- $17.6B latest quarter at a 42% margin
- Share count roughly flat (~1%/yr dilution), well below the 10% penalty threshold
- Net-cash balance sheet (~$24.4B) de-levering on a net basis; BBB+ (third upgrade)
Penalty modifiers (none triggered): Negative FCF -- No (FCF large and growing). Dilution >10% YoY -- No (~1%/yr). Revenue up / operating income down -- No (OI rising faster than revenue). Debt growing faster than revenue 3+ quarters -- No (net cash, de-levering).
Cyclicality caveat (no penalty): This is a deeply cyclical memory business at the top of an unprecedented up-cycle -- the FY2023 trough (revenue -49.5%, GM -7.7%, FCF -$6.1B) is in the annual table above. The rate of acceleration mechanically cannot persist (FY26Q4 guide already shows GM expansion moderating). But the dimension scores the realized and currently-guided trend, which is as strong as the rubric allows.
Data sourced from Daloopa (company_id: 136). Fiscal year ends late August / early September. All financials in USD.