Micron — 2026Q3 earnings

“Revenue of $54.23 billion versus $41.46 billion for the prior quarter and $11.32 billion for the same period last year”

“GAAP net income of $37.70 billion, or $32.87 per diluted share”

“Non-GAAP net income of $38.40 billion, or $33.42 per diluted share”

“Operating cash flow of $43.97 billion versus $25.39 billion for the prior quarter and $5.73 billion for the same period last year”

“Revenue of $133.19 billion versus $37.38 billion for the prior year”

“Adjusted free cash flow (2) was $33.20 billion for the fourth quarter of 2026 and $62.31 billion for the full year of 2026.”

“Investments in capital expenditures, net (2) were $10.77 billion for the fourth quarter of 2026 and $27.37 billion for the full year of 2026.”

“Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027”

“We are increasing our investments in technology, products and manufacturing to help drive SI forward with our customers, and our Strategic Customer Agreements provide added confidence in the durability of Micron’s financial performance.”

“Our industry leading server LPDDR SOCAMM portfolio revenue more than doubled sequentially in the fourth quarter of 2026.”

“Micron delivered an exceptional fiscal Q4, with significant records in revenue, gross margin and EPS (earnings per share), each exceeding the high end of our guidance.”

“Consolidated fiscal Q4 revenue was $54.2 billion, up 31% sequentially and up 379% year over year. Fiscal Q4 revenue was our sixth consecutive quarterly revenue record.”

“Fiscal Q4 DRAM revenue was a record $39.8 billion, up 343% year over year, and represented 73% of total revenue. Sequentially, DRAM revenue increased 27%. Bit shipments were up mid-single-digit percentage range. Prices increased high-teens percentage range, driven by tight DRAM industry conditions.”

“Consolidated gross margin for fiscal Q4 was 87.0%, up 210 basis points sequentially. This improvement was driven primarily by higher pricing and strong execution, partially offset by mix.”

“To date, we have signed 26 SCAs, which we currently estimate to be over 35% of our revenue through 2030.”

“To date we have signed 26 SCAs in total, and our remaining performance obligations, or RPO, is approximately $150 billion.”

“Even with additional industry DRAM cleanroom space plans, with robust demand trends including new upside requests from customers, we do not have line of sight to when supply and demand will return to balance.”

“We have completed agreements for the vast majority of our calendar 2027 HBM bit supply with significant price increases year over year, narrowing the gross margin gap with conventional DRAM.”

“We expect FQ1 revenue to be a record $61.5 billion, plus or minus $1.5 billion; gross margin to be approximately 86.25%; and operating expenses to be approximately $2.06 billion. Based on a share count of approximately 1.15 billion shares, we expect EPS to be $38.15 per share, plus or minus $1.00.”

“We anticipate fiscal Q1 to be the floor for gross margins in fiscal 2027. As Sanjay mentioned, we made a decision to increase fiscal 2026 incentive compensation in fiscal Q4. Most of the increase in fiscal 2026 incentive compensation pertaining to manufacturing was absorbed into inventories in fiscal Q4. As a result, the effects from the sale of these higher cost inventories principally impact fiscal Q1 gross margin.”

“In fiscal Q1, we project capex of around $11.5 billion and anticipate first-half fiscal 2027 capex to be approximately $25 billion. We project capex to be higher in the second half of fiscal 2027.”