How Did Micron Fare In Q3?
For the fiscal third quarter, Micron reported revenue of $41.46 billion, well above estimates of $35.84 billion. That is a four-fold jump from the $9.3 billion topline that the memory chip manufacturer had reported during the same quarter last year.
Earnings Per Share (EPS) for the quarter grew to $25.11, also higher than estimates of $20.78.
Micron has been a major beneficiary of memory prices skyrocketing over the last few years as AI chips have eaten into the production capacity of a limited number of vendors.
CEO Sanjay Mehrotra on the company’s earnings call stated that their customers are recognizing the fact that supply shortages in memory and storage will take a considerable time to improve and industry supply will only improve gradually in 2028.
Micron’s gross margins at the end of the third quarter expanded to 84.9%, a 10 percentage point jump from 74.9% it had reported last year, also surpassing expectations.
How Did Micron’s Businesses Fare In Q3?
All four business units of Micron saw a multi-fold jump in revenue during the quarter, but the biggest came from the core data center business.
Micron’s Data Center business saw a seven-fold jump in revenue to $11.5 billion in Q3 compared to $1.5 billion last year. $5 billion also came from the data center solid state drive revenue.
Topline from the cloud memory business grew by over 300% from last year to $13.77 billion, while the mobile and client business saw a 250% topline jump to $11.5 billion. Contributions from the memory for automotive and embedded applications also grew more than 4x year-on-year to $4.63 billion.
What Does Micron Expect For Q4?
For the ongoing fourth quarter of fiscal 2026, Micron expects another four-fold jump in its topline, with a $50 billion revenue guidance, well above analyst estimates of $43.58 billion. The company had reported $11.3 billion in revenue in the fourth quarter of fiscal 2025.
The company has also 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. CEO Mehrotra added that once completed, these contracts will be contributing to half or more than half of Micron’s topline.
Through these 16 long-term agreements, Micron is anticipating financial commitments worth $22 billion.
Impact of Micron’s Results
Shares of Micron are up 16% in afterhours trading at $1,214. The stock is up 232% so far in 2026 as of regular trading on Wednesday and over 700% during the last 12 months. The surge in Micron’s share price has taken its market capitalisation past the $1 trillion mark earlier this year.
Results of Micron and the subsequent surge in the stock has also given a boost to the Nasdaq futures, which are up 550 points this morning. Shares of its peer companies, Western Digital, Sandisk, Qualcomm, have also risen between 11% to 14% respectively after this earnings report.
First Published: Jun 25, 2026 5:05 AM IST
