**Micron's own September 30, 2026 earnings guidance positions the 85–87.5% adjusted gross margin range as the clear trader favorite.** The company explicitly guided fiscal Q1 2027 (the current quarter) non-GAAP gross margin at approximately 86.25%, down slightly from the 87.0% delivered in Q4 FY2026, citing roughly $1 billion in higher-cost inventory effects from elevated incentive compensation and manufacturing costs that were largely absorbed in the prior period. Management described Q1 as the explicit "floor" for FY2027 margins, with sequential improvement expected thereafter amid continued tight supply-demand conditions. Strong AI-driven demand for high-bandwidth memory (HBM) and other products, plus multi-year strategic customer agreements covering substantial future volumes at favorable pricing, underpins the outlook and supports expectations that actual results will land near the guided level. Analysts and traders view the 86.25% figure as highly credible given Micron's recent history of beating revenue guidance and the structural tailwinds from memory shortages, though the one-time cost headwinds introduce modest uncertainty around the exact print. With earnings likely due in early December, the market-implied odds reflect a consensus that the result will fall comfortably within the central 85–87.5% bin rather than deviating materially higher or lower.