Micron CEO Sanjay Mehrotra speaks at the groundbreaking ceremony for the company’s semiconductor manufacturing facility in Clay, New York, on January 16, 2026.
Heather Ainsworth | Bloomberg | Getty Images
micronThe company said Wednesday that revenue more than quadrupled in its fiscal third quarter as the memory maker continued to benefit from a surge in demand driven by the artificial intelligence boom. Shares rose 15% in extended trading.
Here’s how the company has performed against LSEG’s consensus forecast:
Revenue: $41.46 billion vs. estimated $35.84 billion EPS: Adjusted $25.11 vs. estimated $20.78
Micron said in a statement that sales increased from $9.3 billion in the same period last year. The company said it expects sales for the current quarter to be about $50 billion, up from $11.3 billion in the year-ago period. Analysts had expected revenue of $43.58 billion, according to LSEG.
Memory prices have skyrocketed in recent years as AI chips have used up all the production capacity of a few vendors. As the demand for data centers increases day by day, the price of memory used in smartphones, laptops, and other devices is also increasing.
“While we expect industry supply to gradually improve in 2028, our customers recognize that the memory and storage shortage will take a significant amount of time to improve,” Micron CEO Sanjay Mehrotra said on a conference call with analysts.
This has made Micron a darling of Wall Street, as the technology is essential to the chips Micron makes. Nvidia and googleand the servers that house those companies’ processors. Micron’s stock price has risen about 700% over the past year, giving the company a market capitalization of more than $1 trillion.
Micron announced Wednesday that it has signed 16 long-term contracts with customers such as data center operators and automakers that lock in revenue for three to five years.
“Upon completion, we expect approximately more than half of our revenue to be derived from these strategic customer agreements,” Mehrotra said. He added that it consists of a binding contract to purchase Micron chips in bulk.
Micron said the long-term agreement is expected to result in $22 billion in capital commitments.
“This is good for Micron,” Chief Financial Officer Mark Murphy told analysts. “We have visibility into demand and high commitment volumes, so we can invest with confidence.”
Micron’s gross profit margin (profit remaining after taking into account cost of goods sold) rose to 84.9% in the third quarter from 74.9% in the previous quarter and 39% in the same period last year. Profit margins exceeded analysts’ expectations.
Net income for the quarter was $28.24 billion, or $24.46 per share, compared with $1.89 billion, or $1.68 per share, in the year-ago period.
All four of Micron’s business units doubled their revenue, but the most explosive growth was in the company’s core data center business, where sales rose more than seven times to $11.5 billion from $1.53 billion a year earlier. In addition to memory, Micron also recorded more than $5 billion in data center solid-state drive revenue, the company said in a presentation.
Cloud memory increased more than 300% to $13.77 billion.
Sales of the company’s mobile and client business increased 250% to $11.52 billion, and even memory for automotive and embedded applications saw sales more than quadruple to $4.63 billion.
The company said shareholders will receive a 15-cent dividend in July.
Spotlight: Micron’s earnings focus on gross profit and distribution in 2027M
