Breaking News | Micron Revenue Quadruples to $41.5B on AI Memory Shortage

Micron reported fiscal Q3 revenue of $41.46 billion, up 346% year-over-year and beating the $35.84 billion consensus by $5.6 billion. Adjusted EPS of $25.11 cleared the $20.78 estimate. Gross margin expanded to 84.9% from 39% a year earlier.

Data center revenue surged more than sevenfold to $11.5 billion. The company disclosed it has signed 16 Strategic Customer Agreements spanning three to five years, structured with binding volume commitments. CEO Sanjay Mehrotra stated that approximately half or more of company revenue will eventually fall under these contracts, which carry $22 billion in financial commitments.

For fiscal Q4, Micron guided to $50 billion in revenue versus the $43.58 billion consensus, with adjusted EPS of approximately $31.00 and gross margins approaching 86%. Management indicated that supply constraints in the high-bandwidth memory market are expected to persist beyond 2027.

• Fiscal Q4 results (expected late September 2026): Confirmation that revenue reaches the $50B guide and gross margins hold near 86%.

• CHIPS Act anniversary (December 2026): Bank of America expects a meaningful step-up in capital returns after this regulatory milestone.

• SCA execution: Whether the 16 Strategic Customer Agreements convert additional revenue from spot pricing to contracted floors, and how quickly the company moves toward the 50% revenue target under long-term deals.