Micron Technology (MU) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 FY2026 revenue of $41.5B, gross margin of 84.9%, and EPS of $25.11, all exceeding guidance high end, driven by strong AI demand and tight supply conditions.

• Data center revenue exceeded $25B, annualizing over $100B; SSD revenue more than doubled sequentially.

• 16 Strategic Customer Agreements (SCAs) signed, covering 20% of DRAM and 33% of NAND volume, expected to cover up to half of future revenue, providing supply assurance and price visibility.

• SCAs are multi-year, take-or-pay agreements with price bands and $22B in customer deposits, enhancing financial predictability and margin durability.

• Memory and storage supply remains structurally constrained due to technology complexity, fab construction delays, and greenfield expansion requirements.

Financial highlights

• Fiscal Q3 revenue: $41.5B, up 74% sequentially and 346% year-over-year; DRAM revenue: $31.3B (76% of total), NAND revenue: $9.9B (24% of total).

• Gross margin: 84.9%, up 10 points sequentially and more than doubled YoY; operating income: $33.7B, operating margin: 81.2%.

• Net income: $28.86B (non-GAAP), $28.24B (GAAP); non-GAAP EPS: $25.11; GAAP EPS: $25.03 (basic), $24.67 (diluted).

• Free cash flow: $18.3B, a quarterly record; cash and investments: $30.2B at quarter end.

• Debt reduced by $4.4B in Q3; net cash balance: $24.4B; weighted average debt maturity April 2035.

Outlook and guidance

• Fiscal Q4 revenue expected at $50B ±$1B; gross margin ~86%; EPS projected at $31.00 ±$1.00.

• Fiscal Q4 capex projected at ~$10B; full-year 2026 capex ~$27B.

• Free cash flow forecasted to increase substantially in Q4; plan to return 100% of excess cash to shareholders over time.

• DRAM bit shipments in 2026 expected to grow low to mid-20s%; NAND bit shipments ~20%.

• Supply-demand tightness expected to persist beyond 2027.