Micron Technology (MU) Q3 2026 earnings summary

Executive summary

• Fiscal Q3 FY2026 delivered record revenue, gross margin, and EPS, all exceeding guidance highs, driven by 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 up to a third of NAND volume, providing supply assurance and financial visibility.

• SCAs are multi-year, take-or-pay agreements with price bands, expected to cover up to 40% of revenue at floor price, with $22B in customer deposits and commitments.

• 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; fifth consecutive quarterly revenue record.

• DRAM revenue: $31.3B (76% of total), up 343% year-over-year; NAND revenue: $9.9B (24% of total), up 361% year-over-year.

• Gross margin: 84.9% (non-GAAP), up 10 points sequentially; operating income: $33.7B (non-GAAP), operating margin: 81.2%.

• Non-GAAP EPS: $25.11, up 106% sequentially; free cash flow: $18.3B, a quarterly record.

• Ended Q3 with $30.2B in cash, marketable investments, and restricted cash; net cash balance of $24.4B.

Outlook and guidance

• Fiscal Q4 revenue expected at $50B ±$1B; gross margin ~86%; operating expenses ~$1.65B (non-GAAP).

• Fiscal Q4 EPS projected at $31 ±$1 (non-GAAP); CapEx for Q4 ~$10B, full-year 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.