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- Micron reported fiscal third-quarter results that topped analysts’ estimates.
- The company has been one of the biggest beneficiaries of the AI boom, which has caused historic demand for memory.
- Micron’s stock price is up about 700% over the past year, lifting the company’s market cap past $1 trillion.
Micron CEO Sanjay Mehrotra speaks at a groundbreaking ceremony for the company’s semiconductor manufacturing facility in Clay, New York, on Jan. 16, 2026.Heather Ainsworth | Bloomberg | Getty Images
Micron‘s revenue more than quadrupled in the fiscal third quarter, the company said on Wednesday, as the memory maker continued to benefit from soaring demand tied to the artificial intelligence boom. The stock rose over 16% in extended trading.
Here’s how the memory maker did versus LSEG consensus estimates:
- Revenue: $41.46 billion versus $35.84 billion estimated
- EPS: $25.11, adjusted, versus $20.78 estimated
Revenue increased from $9.3 billion a year earlier, Micron said in a statement. For the current quarter, the company said it expects revenue of about $50 billion, up from $11.3 billion a year earlier. Analysts were looking for a revenue forecast of $43.58 billion, according to LSEG.
Memory prices have skyrocketed in the last couple years as AI chips eat up all the production capacity of the small crop of vendors. With data center demand increasing by the day, prices are also rising for memory used in smartphones, laptops and other gadgets.
“Our customers are recognizing that supply shortages in memory and storage will take considerable time to improve, even as we expect industry supply to improve gradually in 2028,” Micron CEO Sanjay Mehrotra said on a call with analysts.
That’s turned Micron into a Wall Street darling as its technology is essential for chips made by Nvidia and Google, as well as the servers that house those companies’ processors. Micron’s stock price is up roughly 700% over the past year, lifting the company’s market cap past $1 trillion.
Micron said on Wednesday that it has signed 16 long-term agreements with customers such as data center operators and automakers that lock in sales for a period of three to five years.
“When completed, we expect approximately half or more of our company revenue to be under these” strategic customer agreements, Mehrotra said. He added that they were structured with binding agreements to purchase volumes of Micron’s chips.
Micron said it expected financial commitments of $22 billion from the 16 long-term agreements.
Micron’s gross margin, the profit left after accounting for the cost of goods sold, jumped to 84.9% in the third quarter from 74.9% in the prior period and 39% a year earlier. Micron’s margins topped analyst estimates.
Net income during the quarter was $28.24 billion, or $24.46 per share, versus $1.89 billion, or $1.68 per share in the year-ago period.
While all four of Micron’s business units saw revenue multiply, the most explosive growth was in the core data center business, where sales climbed more than sevenfold to $11.5 billion from $1.53 billion in the same period a year ago. In addition to memory, Micron also recorded over $5 billion in data center solid state drive revenue, the company said in a presentation.
Cloud memory was up over 300% to $13.77 billion.
Sales for memory for devices also grew as prices rose. The company’s mobile and client business unit saw revenue grow over 250% to $11.52 billion, and even memory for automotive and embedded applications more than quadrupled to $4.63 billion in sales.
The company said shareholders will receive a 15 cent dividend in July.
WATCH: Micron earnings focus on gross margins and 2027 allocations
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