Micron CEO Sanjay Mehrotra speaks at a groundbreaking ceremony for the corporate’s semiconductor manufacturing facility in Clay, New York, on Jan. 16, 2026.
Heather Ainsworth | Bloomberg | Getty Photos
Micron‘s income greater than quadrupled within the fiscal third quarter, the corporate stated on Wednesday, because the reminiscence maker continued to learn from hovering demand tied to the synthetic intelligence increase. The inventory rose 15% in prolonged buying and selling.
This is how the corporate did versus LSEG consensus estimates:
- Income: $41.46 billion versus $35.84 billion estimated
- EPS: $25.11, adjusted, versus $20.78 estimated
Income elevated from $9.3 billion a yr earlier, Micron stated in a press release. For the present quarter, the corporate stated it expects income of about $50 billion, up from $11.3 billion a yr earlier. Analysts have been searching for a income forecast of $43.58 billion, in response to LSEG.
Reminiscence costs have skyrocketed within the final couple years as AI chips eat up all of the manufacturing capability of the small crop of distributors. With knowledge heart demand rising by the day, costs are additionally rising for reminiscence utilized in smartphones, laptops and different devices.
“Our clients are recognizing that offer shortages in reminiscence and storage will take appreciable time to enhance, at the same time as we anticipate business provide to enhance steadily in 2028,” Micron CEO Sanjay Mehrotra stated on a name with analysts.
That is turned Micron right into a Wall Avenue darling as its know-how is important for chips made by Nvidia and Google, in addition to the servers that home these corporations’ processors. Micron’s inventory worth is up roughly 700% over the previous yr, lifting the corporate’s market cap previous $1 trillion.
Micron stated on Wednesday that it has signed 16 long-term agreements with clients reminiscent of knowledge heart operators and automakers that lock in gross sales for a interval of three to 5 years.
“When accomplished, we anticipate roughly half or extra of our firm income to be underneath these” strategic buyer agreements, Mehrotra stated. He added that they have been structured with binding agreements to buy volumes of Micron’s chips.
Micron stated it anticipated monetary commitments of $22 billion from the long-term agreements.
“That is good for Micron,” CFO Mark Murphy advised analysts. “We get visibility on our demand, it is dedicated quantity that we might be assured about making our investments.”
Micron’s gross margin, the revenue left after accounting for the price of items bought, jumped to 84.9% within the third quarter from 74.9% within the prior interval and 39% a yr earlier. Margins topped analyst estimates.
Web revenue through the quarter was $28.24 billion, or $24.46 per share, versus $1.89 billion, or $1.68 per share within the year-ago interval.
Whereas all 4 of Micron’s enterprise models noticed income multiply, probably the most explosive progress was within the core knowledge heart enterprise, the place gross sales climbed greater than sevenfold to $11.5 billion from $1.53 billion in the identical interval a yr in the past. Along with reminiscence, Micron additionally recorded over $5 billion in knowledge heart stable state drive income, the corporate stated in a presentation.
Cloud reminiscence was up over 300% to $13.77 billion.
The corporate’s cellular and shopper enterprise unit noticed a 250% progress in income to $11.52 billion, and even reminiscence for automotive and embedded purposes greater than quadrupled to $4.63 billion in gross sales.
The corporate stated shareholders will obtain a 15-cent dividend in July.
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