Micron (MU) earnings report Q3 2026

MicronThe company’s revenue more than quadrupled in the third fiscal quarter in question On Wednesday, the memory maker continued to benefit from rising demand due to the artificial intelligence boom. The stock rose 15% in extended trading.

Here’s how the company performed against LSEG consensus estimates:

• Revenues: $41.46 billion compared to the estimated $35.84 billion
• EPS: Adjusted $25.11 vs. estimated $20.78

Revenue increased from $9.3 billion a year ago, Micron said in a statement. For the current quarter, the company said it expects revenue of approximately $50 billion, up from $11.3 billion a year ago. Analysts were looking for a revenue estimate of $43.58 billion, according to LSEG.

Memory prices have skyrocketed in the last few years as AI chips consume all production capacity of a small group of vendors. As the demand for data centers increases day by day, the prices of memory used in smartphones, laptops and other devices are also increasing.

“Our customers recognize that addressing supply shortages in memory and storage will take significant time, even as we expect industry supply to gradually recover in 2028,” Micron CEO Sanjay Mehrotra said on a call with analysts. he said.

This has made Micron a darling of Wall Street because its technology is crucial to chips. Nvidia And Googleas well as servers hosting these companies’ processors. Micron’s share price rose nearly 700% last year, pushing the company’s market value to over $1 trillion.

Micron said Wednesday that it has signed 16 long-term agreements with customers such as data center operators and automakers that lock in sales for a period of three to five years.

“Once completed, we expect approximately half or more of our company revenue to come from these strategic customer agreements,” Mehrotra said. He added that they are structured with binding agreements to purchase volumes of Micron’s chips.

Micron said it expects financial commitments of $22 billion from long-term agreements.

“This is a good thing for Micron,” CFO Mark Murphy told analysts. “We get visibility into our demand, a committed volume that we can feel confident about making our investments.”

Micron’s gross margin, the remaining profit after accounting for cost of goods sold, rose to 84.9% in the third quarter, from 74.9% in the prior period and 39% a year earlier. Margins were above analyst estimates.

Net income for the quarter was $28.24 billion, or $24.46 per share, compared to $1.89 billion, or $1.68 per share, in the same period a year ago.

While all four of Micron’s business units experienced revenue increases, the biggest growth was in its core data center business, where sales increased sevenfold to $11.5 billion, from $1.53 billion in the same period a year ago. In addition to memory, Micron also generates over $5 billion in data center solid state drive revenue, the company said in a presentation.

Cloud storage increased over 300% to $13.77 billion.

The company’s mobile and customer business unit saw a 250% increase in revenue to $11.52 billion, and even sales of memory for automotive and embedded applications more than quadrupled to $4.63 billion.

Shareholders will receive a 15-cent dividend in July, the company said.

WRISTWATCH: Micron earnings focus on gross margins and 2027 allocations