Micron Q3 2026 Earnings: Record Revenue and Margins Fueled by AI Memory Demand
Micron's fiscal Q3 2026 revenue and profit surged as AI-driven demand for memory chips, especially high-bandwidth memory, pushed prices and margins to record highs.
| Q3 2026 | Reported |
|---|---|
| EPS | $24.67 |
| Revenue | $41.46B |
Figures as reported by the company to the SEC for the quarter ended May 28, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue for the quarter came in at $41.5 billion, several times higher than the year-earlier period, as demand for memory chips used in AI data centers continued to outstrip supply.
- Data center revenue alone topped $25 billion for the quarter — an annualized pace of more than $100 billion — and revenue from data center storage drives (SSDs) more than doubled from the prior quarter.
- Profitability jumped: trailing twelve-month gross margin stands around 73% and operating margin near 66%, reflecting how strong pricing and demand for memory chips let Micron keep far more of each sales dollar as profit than it did a year earlier, when margins were much thinner.
- Free cash flow — the cash left over after running the business and funding factory investments — reached a quarterly record of $18.3 billion.
- Micron said it has now signed 16 long-term “strategic customer agreements” that lock in pricing and volume commitments with major buyers, which management said should make future revenue steadier and less exposed to the boom-bust swings that have historically hit the memory-chip industry.
- For the current quarter, Micron guided revenue to about $50 billion, roughly four times year-ago levels, citing memory supply that remains tight relative to demand.
- CEO Sanjay Mehrotra said the results reflect “the strategic value of memory in the AI era” and that the company does not yet have visibility into when industry-wide memory supply will catch up with demand.
- Management said Micron is investing at record levels in new manufacturing capacity, including a Singapore facility expected to add high-bandwidth memory (HBM) packaging capacity starting in early 2027, to keep up with AI-related demand.
Q3 2026 in context
| Metric | May 2026 | May 2025 | Change |
|---|---|---|---|
| Revenue | $41.5B | $9.3B | +345.7% |
| Net income | $28.2B | $1.9B | +1398.3% |
| Free cash flow | $17.6B | $1.7B | +951.0% |
| Diluted EPS | $24.67 | $1.68 | +1368.5% |
| Gross margin | 84.6% | 37.7% | +46.8 pts |
| Operating margin | 80.4% | 23.3% | +57.0 pts |
| Net margin | 68.1% | 20.3% | +47.9 pts |
Figures for the quarter ended May 2026 and the quarter ended May 2025, as reported to the SEC.
Each company's quarter ending in calendar Q2 '26, as reported to the SEC. A peer that reported no revenue figure for that quarter is left out.
How the stock took it
Micron Technology Inc closed at $1048.51 on Jun 24, 2026, the last session before the report, and at $1132.33 on Jun 26, 2026, the first session after it — +8.0% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| Mar 19, 2026 | $461.73 | $422.90 | -8.4% |
| Dec 18, 2025 | $225.52 | $265.92 | +17.9% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings materials · earnings call