Micron Technology: Fiscal 3Q26 Financial Results
Generating $41.6 billion, up 74.3% QoQ and up 347.3% YoY
This is a Press Release edited by StorageNewsletter.com on June 26, 2026 at 2:01 pmFiscal Q3 2026 highlights:
- Revenue of $41.46 billion versus $23.86 billion for the prior quarter and $9.30 billion for the same period last year
- GAAP net income of $28.24 billion, or $24.67 per diluted share
- Non-GAAP net income of $28.86 billion, or $25.11 per diluted share
- Operating cash flow of $25.39 billion versus $11.90 billion for the prior quarter and $4.61 billion for the same period last year
Micron Technology, Inc. announced results for its third quarter of fiscal 2026, which ended May 28, 2026.
“Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era,” said Sanjay Mehrotra, chairman, president and CEO, Micron Technology. “Micron is investing at record levels in technology, products and supply to address our customers’ rapidly growing demand. We believe our multi-year Strategic Customer Agreements will significantly enhance the durability and predictability of Micron’s strong financial performance.”
Quarterly Financial Results
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Quarterly Business Unit Financial Results
Business Outlook
Product highlights
- HBM4, built on 1-beta DRAM technology, is in high-volume shipments for our lead customer’s platform, and qualification samples have been shipped to multiple end-customers
- Development of HBM4E, built on 1-gamma DRAM technology, is well underway, with volume production expected in calendar 2027
- Qualification samples of 256GB DDR5 RDIMMs, built on 1-gamma DRAM technology and advanced 3D die stacking, has shipped to key server ecosystem enablers
- Our LP5X SOCAMM2 products are in high-volume production, and we have expanded our LP5X SOCAMM2 offerings across multiple capacity points
- G9-based PCIe Gen6 high-performance SSD is now in high-volume production
- We commenced shipments of our high-capacity 245TB QLC SSD
- Gen5 QLC PC Client SSD with G9 NAND has achieved successful lead customer qualification
- 1-gamma 16Gb LPDDR5X has begun high-volume ramp at a leading smartphone OEM, and we are currently sampling our 1-gamma 24Gb LP5X product to multiple smartphone customers
- 1-gamma LPDDR5 reached automotive product readiness, with samples delivered to key customers, and we shipped our first 1-gamma DDR5 samples to a robotaxi customer
- G9-based UFS 4.1 automotive NAND solution began first volume shipments
(1) GAAP represents U.S. Generally Accepted Accounting Principles
(2) Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings; adjusted free cash flow; investments in capital expenditures, net; and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release
Comments
Micron Technology reported record results for its third fiscal quarter ended May 28, 2026, this is amazing when you consider last quarter revenue and last year for the same quarter. And even if it is spectacular, the growth ratio is galactic with incredible margin levels and it invites people to have a sort of mixed feelings on that having difficulties to purchase products to honor their mission and discover the revenue and associated margin for Micron or other similar players. This is perfectly illustrated by the cash generated with $30.2B.
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Sanjay Mehrotra, chairman, president and CEO, framed the quarter around the structural transformation underway, announcing that Micron has now signed 16 Strategic Customer Agreements (SCAs) across data center, consumer and automotive segments, representing roughly 20% of DRAM volume and one-third of NAND volume over the calendar 2026-2030 term (three years for automotive). The agreements are structured as take-or-pay contracts with binding volume commitments; the largest carry a ceiling price at current CQ2 market levels and a floor price designed to support gross margins well above any past cyclical peak. Fourteen of the 16 SCAs represent approximately $100B in cumulative minimum-price revenue, and the company projects $22B in cash deposits and related financial commitments under signed agreements. When all planned SCAs are executed, roughly half or more of Micron revenue will be under contract, with about 40% carrying fixed prices or ceilings near current CQ2 levels. Data center revenue exceeded $25B in the quarter, an annualized run rate above $100B, and data center SSD revenue alone exceeded $5B, more than doubling sequentially.
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By technology, DRAM contributed $31.33B (76% of total revenue), up 67% QoQ and 343% YoY, with bit shipments up low-single digits and ASPs up in the low-60s percent range. NAND revenue reached $9.94B (24% of total), up 99% QoQ and 361% YoY, with mid-single-digit bit shipment growth and ASPs up in the mid-80s percent range, extraordinary pricing dynamics confirming the "RAMmageddon" supply-squeeze dynamic Coldago Research and others have flagged.
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By business unit, Cloud Memory (CMBU) hit a record $13.77B (up 78% QoQ, +307% YoY) at 83% gross margin and 78% operating margin; Core Data Center (CDBU) reached a record $11.52B (up 103% QoQ, +653% YoY) at 87% gross margin and 83% operating margin; Mobile and Client (MCBU) hit a record $11.52B (up 49% QoQ, +254% YoY) at 87% gross margin; and Automotive and Embedded (AEBU) set a record at $4.63B (up 71% QoQ, +311% YoY) at 79% gross margin.
On the product side, HBM4 is in high-volume shipments for the lead customer's platform with qualification samples shipped to multiple end-customers; volume ramp is tracking twice as fast as HBM3E 12-high, and Micron has already shipped over $1B in HBM4 revenue, with HBM4E targeted for volume production in calendar 2027. Other product milestones include qualification samples of 256GB DDR5 RDIMMs to key server ecosystem enablers, high-volume production of LP5X SOCAMM2 across multiple capacity points, high-volume production of G9-based PCIe Gen6 high-performance SSDs, first shipments of a 245TB QLC SSD, lead-customer qualification of Gen5 QLC PC Client SSD with G9 NAND, high-volume ramp of 1-gamma 16Gb LPDDR5X at a leading smartphone OEM, 1-gamma LPDDR5 automotive product readiness, first 1-gamma DDR5 samples to a robotaxi customer, and first volume shipments of a G9-based UFS 4.1 automotive NAND solution.
But again these amazing results give us mixed feelings between positive and negative...
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