Micron Technology closed out its fiscal year with a quarter that looks less like a normal chip cycle and more like a company operating in a market of its own. Revenue for the fiscal fourth quarter (June through August, ended September 3) reached $54.2 billion, up 379% from the same quarter a year earlier and roughly 6% above the $51.07 billion consensus compiled by the London Stock Exchange Group. Adjusted earnings per share came in at $33.42 against estimates of $31.61, while GAAP net income jumped nearly twelvefold to $37.7 billion.
The full-year picture is just as striking. Fiscal 2026 revenue totaled $133.2 billion, up 256% from fiscal 2025's $37.38 billion. Non-GAAP earnings per share for the year reached $75.52, a roughly ninefold increase. Operating income margin for the year nearly tripled to 76%, and the fourth quarter alone delivered an 87% adjusted gross margin as memory prices kept climbing. DRAM revenue hit a record $39.8 billion, up 343% year over year with average selling prices rising in the high teens quarter over quarter. NAND reached $14.1 billion, up 526%, with prices about 30% higher than the prior quarter. Data center SSD revenue alone approached $10 billion, more than ten times the year-ago quarter.
Then came the part investors were waiting for. Micron guided fiscal first-quarter 2027 revenue to $61.5 billion with adjusted EPS of $38.15, both comfortably above Wall Street's $57 billion and $35.40 estimates. Management described industry demand as having strengthened since the prior earnings call and expects supply and demand conditions in 2027 and 2028 to be tighter than in 2026.
Why it matters
What makes this cycle different from every memory boom before it is how the demand is being locked in. Micron has signed 26 strategic customer agreements that now account for 35% of its revenue through 2030, and customers are already requesting deals that stretch into 2031. Three-quarters of those contracts carry defined price bands with both a floor and a ceiling. That structure does something the memory industry has never had: it converts a spot-market commodity business into something closer to a contracted utility, with visibility on both volume and price for the rest of the decade.
The margins tell the same story. An 87% gross margin is not a cyclical peak number — it is the signature of a seller's market where buyers cannot wait for cheaper supply. The same AI infrastructure spending wave lifting Dell's $130 billion AI server order book and storage suppliers like Western Digital is now hitting memory, the one component every AI rack needs more of as models grow. Micron is responding with higher fiscal 2027 capital spending, mostly construction capex for cleanroom space aimed at late 2028 and beyond.
What to watch
- Whether Micron converts its $61.5 billion Q1 revenue guide into reported results — a 13.4% sequential step-up.
- DRAM and NAND pricing through the quarter; sustained price strength is what keeps 87% margins intact.
- The pace of cleanroom construction capex and whether new capacity arrives before the 2030 supply-constraint window management describes.
- Hyperscaler capital spending plans — memory demand ultimately follows data center buildouts.
- The sixfold stock rally: the share traded around $1,075 on the day of the results, down about 2%, suggesting the numbers were partly priced in.
MarketRadar take
The quarter is bullish for Micron on the facts that matter most to a memory maker's durability: guidance above consensus, record margins, and a third of revenue contracted through 2030 with price floors. The valuation math is unusual for a stock up sixfold in a year — trailing earnings of $75.52 against a ~$1,075 share price imply roughly 14 times earnings, well below the S&P 500's 23.5x, and the FY2027 consensus EPS of $176.69 implies just over 6 times forward earnings. Run-rate math on the $61.5 billion guide annualizes near $246 billion, though Q1 is typically seasonally strong, so that number needs quarterly confirmation rather than extrapolation. The open question is not demand — 26 long-term agreements answer that — but how much of this pricing power survives once Micron's own new cleanroom capacity arrives late in the decade.
| Metric | Fiscal Q4 2026 | Fiscal Q3 2026 | Full-year FY2026 | Full-year FY2025 |
|---|---|---|---|---|
| Revenue | $54.2B | $41.5B | $133.2B | $37.4B |
| Adjusted gross margin | 87.0% | 84.9% | 81.1% | ~41% |
| GAAP net income | $37.7B | — | $85.0B | — |
| Adjusted EPS | $33.42 | — | $75.52 | — |
| Q/Q revenue growth | +30.8% | — | — | — |
| Y/Y revenue growth | +379% | — | +256% | — |
Table compiled from Micron's reported results via Motley Fool/Nasdaq and Seoul Economic Daily.
