Micron's official guidance for fiscal Q1 2027 non-GAAP gross margin of approximately 86.25% anchors trader consensus around the 85–87.5% and 87.5–90% bins. Management highlighted roughly $1 billion in higher-cost inventory from prior incentive compensation accruals plus new fab startup expenses as the main drivers pulling the figure below the prior quarter's 87.0% level, while noting that Q1 represents the expected floor for the fiscal year amid moderating but still positive DRAM and HBM pricing. Strong AI-driven data center demand continues to support overall revenue growth to a $61.5 billion midpoint, though analysts watch for any last-minute supply or cost variances before the quarter closes.