Micron Technology reported record financial results for its third quarter of fiscal 2026, driven by accelerating demand for AI memory and storage products across cloud, data center, mobile, automotive, and embedded markets. Revenue reached $41.46 billion, up from $23.86 billion in the previous quarter and $9.30 billion a year earlier, while GAAP net income climbed to $28.24 billion. The company also highlighted new multi-year Strategic Customer Agreements (SCAs) designed to provide greater visibility into long-term AI infrastructure demand.
Micron’s strongest growth came from its AI-focused businesses. The Cloud Memory Business Unit generated $13.77 billion in revenue, while the Core Data Center Business Unit contributed $11.52 billion, both more than doubling year-over-year. Gross margins expanded sharply across all business units, reflecting strong pricing and sustained demand for high-bandwidth memory (HBM), DDR5 server memory, enterprise SSDs, and advanced NAND products. Operating cash flow reached $25.39 billion, enabling Micron to invest $7.1 billion in capital expenditures while ending the quarter with $30.2 billion in cash and investments.
Looking ahead, Micron forecast another record quarter, guiding fiscal Q4 revenue to approximately $50 billion, with gross margins of approximately 86% and non-GAAP earnings of approximately $31.00 per share. The company continues expanding its AI memory portfolio, including high-volume shipments of HBM4 built on its 1-beta DRAM process, ongoing development of HBM4E using 1-gamma technology, volume production of PCIe Gen6 SSDs, shipments of 245TB QLC SSDs, qualification of 256GB DDR5 RDIMMs, and expansion of LPDDR5X products for smartphones, automotive platforms, and emerging robotaxi applications.
• Fiscal Q3 revenue: $41.46 billion, versus $23.86 billion in Q2 and $9.30 billion a year ago.
• GAAP net income: $28.24 billion ($24.67 per diluted share).
• Non-GAAP net income: $28.86 billion ($25.11 per diluted share).
• Operating cash flow reached $25.39 billion.
• Capital expenditures totaled $7.1 billion.
• Adjusted free cash flow reached $18.3 billion.
• Cash and investments totaled $30.2 billion.
• Quarterly dividend maintained at $0.15 per share, payable July 21, 2026.
• Q4 guidance:
• Revenue: $50.0 billion ± $1.0 billion
• Gross margin: ~86%
• Non-GAAP EPS: $31.00 ± $1.00
Product Highlights
• HBM4 entered high-volume production for Micron’s lead AI platform customer.
• HBM4E development continues on 1-gamma DRAM technology, with production planned for calendar 2027.
• Qualification samples of 256GB DDR5 RDIMMs shipped to server ecosystem partners.
• LP5X SOCAMM2 products expanded across multiple capacities in volume production.
• G9 PCIe Gen6 enterprise SSDs entered high-volume production.
• Shipments began for 245TB QLC SSDs, targeting hyperscale storage deployments.
• Gen5 QLC client SSD achieved lead customer qualification.
• 1-gamma LPDDR5X entered high-volume production for a leading smartphone OEM.
• Automotive LPDDR5 and DDR5 products advanced into qualification, including shipments to a robotaxi customer.
• Automotive UFS 4.1 NAND entered volume production.
“Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era,” said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology. “Micron is investing at record levels in technology, products and supply to address our customers’ rapidly growing demand. We believe our multi-year Strategic Customer Agreements will significantly enhance the durability and predictability of Micron’s strong financial performance.”
🌐 Analysis
Micron’s latest results reinforce one of the dominant themes in AI infrastructure: memory has become a primary performance bottleneck rather than simply a supporting component. High-bandwidth memory, DDR5 server DRAM, enterprise SSDs, and advanced packaging technologies now sit alongside GPUs and networking silicon as strategic components of next-generation AI clusters. Micron’s mention of long-term Strategic Customer Agreements suggests hyperscalers are increasingly securing multi-year supply commitments for AI infrastructure rather than relying on traditional spot purchasing.
Presentation Addendum
• Micron disclosed that its data center business exceeded a $100 billion annualized revenue run rate, with fiscal Q3 data center revenue surpassing $25 billion, underscoring the scale of AI infrastructure demand.
• The company has now signed 16 Strategic Customer Agreements (SCAs) spanning hyperscale, consumer and automotive customers. Collectively, the agreements cover approximately 20% of Micron’s projected DRAM volume and one-third of its NAND volume through 2030.
• Most SCAs are structured as five-year take-or-pay contracts with binding purchase commitments, giving customers guaranteed supply while providing Micron with improved demand visibility and pricing stability.
• Fourteen of the signed SCAs represent approximately $100 billion in minimum contracted revenue, while customers are expected to provide roughly $22 billion in deposits and other financial commitments over the life of the agreements.
• Management expects more than half of Micron’s future revenue eventually to be covered under Strategic Customer Agreements, representing a fundamental shift from the traditional spot-driven memory business model.
• Micron said HBM4 12-high production is ramping twice as fast as HBM3E 12-high, and cumulative HBM4 revenue has already exceeded $1 billion, reflecting rapid customer adoption.
• The company expects its 1-gamma DRAM and G9 NAND process technologies to become the highest-volume manufacturing nodes in Micron’s history, while next-generation process nodes remain on schedule for volume production during the second half of calendar 2027.
• Management argued that memory costs per bit are likely to increase, rather than decline, as the industry transitions to LPDDR6, DDR6 and future HBM generations due to rising manufacturing complexity and capital intensity.
• Micron expects AI infrastructure to evolve beyond accelerator racks, with agentic AI driving additional demand for CPU servers supporting agent control planes and storage infrastructure supporting expanding AI context memory.
• The company raised its forecast for calendar 2026 server shipments to high-teen percentage growth, citing stronger-than-expected AI server deployments.
• Management highlighted robotics as an emerging long-term growth driver, noting that a humanoid robot may require roughly 10 times the memory and storage of a typical Level 2+ autonomous vehicle, creating a potential multi-decade memory demand cycle.
• Micron expects DRAM and NAND supply constraints to persist beyond calendar 2027, citing the long lead times associated with new fabs, EUV adoption, cleanroom expansion, workforce shortages and increasing manufacturing complexity.
• The company recently signed a multi-year EUV equipment agreement with ASML, supporting deployment of EUV lithography beginning with its future 1-delta DRAM process technology.
• Micron’s manufacturing expansion remains on schedule, including new leading-edge DRAM fabs in Idaho, the new New York manufacturing campus, expansion in Taiwan, and additional advanced packaging capacity in Singaporededicated to HBM products beginning in the first half of calendar 2027.
• For fiscal 2027, Micron expects capital expenditures to increase again, with much of the additional spending directed toward construction of new cleanroom capacity needed to support long-term AI-driven demand.
