Micron CEO Sanjay Mehrotra speaks on the groundbreaking ceremony for the corporate’s semiconductor manufacturing facility in Clay, New York, on January 16, 2026.
Heather Ainsworth | Bloomberg | Getty Photographs
micronThe corporate stated Wednesday that income greater than quadrupled in its fiscal third quarter because the reminiscence maker continued to profit from a surge in demand pushed by the substitute intelligence growth. Shares rose 15% in prolonged buying and selling.
This is how the corporate has carried out in opposition to LSEG’s consensus forecast:
Income: $41.46 billion vs. estimated $35.84 billion EPS: Adjusted $25.11 vs. estimated $20.78
Micron stated in a press release that gross sales elevated from $9.3 billion in the identical interval final 12 months. The corporate stated it expects gross sales for the present quarter to be about $50 billion, up from $11.3 billion within the year-ago interval. Analysts had anticipated income of $43.58 billion, based on LSEG.
Reminiscence costs have skyrocketed in recent times as AI chips have used up all of the manufacturing capability of some distributors. Because the demand for knowledge facilities will increase day-to-day, the worth of reminiscence utilized in smartphones, laptops, and different units can be rising.
“Whereas we anticipate trade provide to regularly enhance in 2028, our clients acknowledge that the reminiscence and storage scarcity will take a major period of time to enhance,” Micron CEO Sanjay Mehrotra stated on a convention name with analysts.
This has made Micron a darling of Wall Road, because the know-how is crucial to the chips Micron makes. Nvidia and googleand the servers that home these corporations’ processors. Micron’s inventory value has risen about 700% over the previous 12 months, giving the corporate a market capitalization of greater than $1 trillion.
Micron introduced Wednesday that it has signed 16 long-term contracts with clients reminiscent of knowledge heart operators and automakers that lock in income for 3 to 5 years.
“Upon completion, we anticipate roughly greater than half of our income to be derived from these strategic buyer agreements,” Mehrotra stated. He added that it consists of a binding contract to buy Micron chips in bulk.
Micron stated the long-term settlement is predicted to lead to $22 billion in capital commitments.
“That is good for Micron,” Chief Monetary Officer Mark Murphy instructed analysts. “We have now visibility into demand and excessive dedication volumes, so we will make investments with confidence.”
Micron’s gross revenue margin (revenue remaining after bearing in mind price of products offered) rose to 84.9% within the third quarter from 74.9% within the earlier quarter and 39% in the identical interval final 12 months. Revenue margins exceeded analysts’ expectations.
Internet revenue for the quarter was $28.24 billion, or $24.46 per share, in contrast with $1.89 billion, or $1.68 per share, within the year-ago interval.
All 4 of Micron’s enterprise items doubled their income, however essentially the most explosive development was within the firm’s core knowledge heart enterprise, the place gross sales rose greater than seven occasions to $11.5 billion from $1.53 billion a 12 months earlier. Along with reminiscence, Micron additionally recorded greater than $5 billion in knowledge heart solid-state drive income, the corporate stated in a presentation.
Cloud reminiscence elevated greater than 300% to $13.77 billion.
Gross sales of the corporate’s cell and consumer enterprise elevated 250% to $11.52 billion, and even reminiscence for automotive and embedded functions noticed gross sales greater than quadruple to $4.63 billion.
The corporate stated shareholders will obtain a 15-cent dividend in July.
Highlight: Micron’s earnings give attention to gross revenue and distribution in 2027M
