Micron Q4 2026 earnings: record revenue and profit on AI memory boom
Micron's fiscal fourth quarter beat Wall Street forecasts by a wide margin, as soaring demand for AI-related memory chips drove record revenue, profit and margins.
| Q4 2026 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $33.42 | $32.56 | +2.6% |
| Revenue | $54.23B | $52.60B | +3.1% |
Key takeaways
- Both earnings per share and revenue came in above analyst expectations, capping what the company called a record fiscal year overall.
- Growth was driven by exploding demand for memory chips used in AI servers and data centers: DRAM (the memory chips used in computers and servers) revenue hit a record and made up nearly three-quarters of sales, while data-center SSD (storage drive) revenue was more than ten times what it was a year earlier.
- Profitability has surged along with sales — trailing-twelve-month gross margin near 73% and operating margin near 66% show Micron is keeping a much bigger share of each sales dollar as profit than in past years, a reversal from the boom-and-bust cycles that have historically squeezed memory-chip makers.
- A key driver is high-bandwidth memory (HBM), a premium chip used in AI accelerators; Micron said it has now locked in significantly higher prices for its 2027 HBM supply, narrowing the profitability gap between HBM and standard memory chips.
- Looking ahead, Micron guided to roughly $61.5 billion in revenue and about $38.15 in adjusted earnings per share for its current quarter (fiscal Q1 2027) — both above the record levels just reported, pointing to continued growth rather than a plateau.
- CEO Sanjay Mehrotra said memory supply will be “much tighter” in 2027 and 2028 than it was in 2026, and tied rising memory demand to the buildout of AI computing power.
- Return on equity near 71% over the trailing year reflects how efficiently Micron is turning shareholder capital into profit, a sharp improvement tied to the current up-cycle in memory pricing.
- Micron said it has signed 26 strategic supply agreements with customers, with about $150 billion in remaining performance obligations — a sign that much of its future production is already committed to buyers.
Q4 2026 in context
| Metric | Sep 2026 | Aug 2025 | Change |
|---|---|---|---|
| Revenue | $54.2B | $11.3B | +379.3% |
| Net income | $37.7B | $3.2B | +1077.8% |
| Free cash flow | $32.9B | $72M | +45543.1% |
| Gross margin | 86.8% | 44.7% | +42.1 pts |
| Operating margin | 80.7% | 32.3% | +48.4 pts |
| Net margin | 69.5% | 28.3% | +41.2 pts |
Figures for the quarter ended Sep 2026 and the quarter ended Aug 2025, as reported to the SEC. Fourth-quarter flows are derived as the fiscal year minus its first three quarters.
Each company's quarter ending in calendar Q3 '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 $1065.08 on Sep 29, 2026, the last session before the report, and at $1097.39 on Oct 1, 2026, the first session after it — +3.0% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| Jun 25, 2026 | $1048.51 | $1132.33 | +8.0% |
| 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.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 72.6% | Trailing 12 months |
| Operating margin | 65.6% | Trailing 12 months |
| Net profit margin | 55.9% | Trailing 12 months |
| Pretax margin | 65.4% | Trailing 12 months |
| EPS | $44.17 | Trailing 12 months |
| Revenue growth (YoY) | 167.0% | Trailing 12 months |
| EPS growth (YoY) | 700.7% | Trailing 12 months |
| Return on equity | 70.5% | Trailing 12 months |
Sources: company report · earnings call