Micron CEO Sanjay Merotra speaks at the groundbreaking ceremony for the company’s first semiconductor plant in Clay, New York on January 16, 2026.
Heather Ainsworth | Bloomberg | Getty Images
MicronThe company’s revenue more than quadrupled in the third fiscal quarter said on Wednesday, as the memory maker continued to benefit from a surge in demand linked to the artificial intelligence boom. Shares rose 15% in extended trading.
Here’s how the company fared compared to LSEG consensus estimates:
- income: $41.46 billion vs. estimates of $35.84 billion
- earnings per share: $25.11, adjusted, vs. $20.78, calculated
Revenue was up from $9.3 billion a year earlier, Micron said in a statement. In the current quarter, the company said it expects revenue of about $50 billion, up from $11.3 billion a year. a year earlier. Analysts had expected revenue of $43.58 billion, according to LSEG.
Memory prices have skyrocketed over the past couple of years as AI chips eat up all the manufacturing capacity of a small crop of vendors. As the data center demand is increasing day by day, the prices are also increasing for the memory used in smartphones, laptops and other gadgets.
“Our customers understand that the memory and storage shortages will take time to improve, even though we expect industry shipments to gradually improve in 2028,” Micron CEO Sanjay Merotra said on a call with analysts.
This has turned Micron into a Wall Street darling, as its technology is essential to the chips being made Nvidia and Googleas well as the servers on which the processors of these companies are located. Micron’s stock price has risen about 700% over the past year, boosting the company’s market capitalization 1 trillion dollars.
Micron said Wednesday it has signed 16 long-term agreements with customers such as data center operators and automakers that lock in sales for three to five years.
“Upon completion, we expect approximately half or more of our company’s revenue to come from these” strategic customer agreements, Mehrotra said. He added that they were structured with binding volume purchase agreements for Micron’s chips.
Micron said it expects financial obligations of $22 billion from the long-term agreements.
“This is good for Micron,” CFO Mark Murphy told analysts. “We’re getting exposure to our demand, it’s a committed volume that we can be confident we’re investing in.”
Micron’s gross margin, the profit left over after cost of goods sold, jumped to 84.9% in the third quarter from 74.9% in the prior period and 39% a year earlier. The margin beat analysts’ estimates.
Net income for the quarter was $28.24 billion, or $24.46 per share, compared with $1.89 billion, or $1.68 per share, last year.
While all four of Micron’s business units saw revenue increase, the strongest growth was in its core data center business, where sales rose more than sevenfold to $11.5 billion from $1.53 billion in the same period last year. In addition to memory, Micron also recorded more than $5 billion in data center revenue from solid-state storage, according to a company presentation.
Cloud storage grew more than 300% to $13.77 billion.
Revenue at the company’s mobile and consumer division rose 250% to $11.52 billion, while sales of even memory for automotive and embedded applications more than quadrupled to $4.63 billion.
The company said shareholders will receive a dividend of 15 cents in July.
WATCH: Micron earnings focus on gross margin and 2027 allocationsM
