01—Abstract
Summary
Summary of the 10-Q filed June 25, 2026. Cited figures are marked; the original filing is the authoritative source.
Micron Technology Inc. reported exceptionally strong financial results for the quarter ending May 28, 2026, driven by a dramatic surge in revenue and profitability.
Revenue more than tripled year-over-year, reaching $41.5 billiona, propelled by substantial increases in both average selling prices and bit shipments for DRAM and NAND products. This surge in demand, particularly from AI-driven applications, outpaced industry supply, leading to significantly improved pricing and margins across Micron's portfolio. The company's gross margin expanded significantly to 85% from 38% in the prior year's quarter, reflecting the favorable pricing environment and operational efficiencies.
Net income also saw a monumental increase, rising from $1.9 billion in the prior year's quarter to $28.2 billionb. This performance underscores Micron's position in a high-demand, supply-constrained market, with strategic customer agreements expected to enhance future revenue visibility and business stability.
02—Key points
Key Highlights
- Revenue soared to $41.5 billion, a 346% increase year-over-year, driven by strong DRAM and NAND sales.
- Gross margin improved dramatically to 85% from 38% in the prior year's comparable quarter.
- Net income reached $28.2 billion, a substantial leap from $1.9 billion in the same period last year.
- DRAM revenue increased by 343% year-over-year, with average selling prices up significantly.
- NAND revenue grew by 361% year-over-year, also benefiting from higher average selling prices.
- Strategic customer agreements are providing increased revenue visibility and business stability.
- The company continues to make substantial investments in new fabrication facilities in the US and globally to meet growing demand.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Micron Technology Inc kept $0.68.
- Revenue$41.46B100.0%
- Cost of revenue−$6.40B15.4%
- Gross profit$35.06B84.6%
- Operating costs−$1.74B4.2%
- Operating income$33.32B80.4%
- Interest, other & tax−$5.08B12.2%
- Net income$28.24B68.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed June 25, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $41.46B$9.30B | +345.7% |
| Cost of Revenue | $6.40B$5.79B | +10.5% |
| Gross Profit | $35.06B$3.51B | +899.3% |
| R&D Expenses | $1.32B$965.00M | +36.4% |
| SG&A Expenses | $407.00M$318.00M | +28.0% |
| Operating Income | $33.32B$2.17B | +1436.1% |
| Net Income | $28.24B$1.89B | +1398.3% |
| EPS (Basic) | $25.03$1.69 | +1381.1% |
| EPS (Diluted) | $24.67$1.68 | +1368.5% |
| Shares Outstanding (Basic) | 1.13B1.12B | +0.9% |
| Shares Outstanding (Diluted) | 1.15B1.13B | +1.8% |
05—Questions
Frequently Asked Questions
What is driving the significant increase in Micron's revenue and profitability?
The primary drivers are a surge in demand for memory and storage solutions, largely fueled by Artificial Intelligence (AI) applications, which has outpaced industry supply. This has led to substantial improvements in average selling prices (ASPs) and bit shipments for both DRAM and NAND products, resulting in significantly higher revenue and improved gross margins.
How are strategic customer agreements impacting Micron's business?
These take-or-pay agreements provide Micron with greater revenue visibility and improved business stability. They involve binding commitments for specific volumes over multi-year terms, often with fixed or banded pricing, which is expected to yield strong gross margins and enhance the predictability of financial performance.
What is Micron's outlook on capital expenditures and future investments?
Micron is making significant capital investments to expand its manufacturing capacity, with an estimated $27 billion in capital expenditures for property, plant, and equipment in 2026. This includes substantial investments in new leading-edge fabrication facilities in Idaho and New York in the U.S., as well as expansions in Singapore, Japan, and Taiwan, to meet projected long-term memory demand, particularly driven by AI.
Are there any significant legal proceedings or risks that investors should be aware of?
Micron is involved in several patent infringement lawsuits, notably with Netlist, Inc., and Yangtze Memory Technologies Company (YMTC). While the company is unable to predict the outcome of these matters, a negative resolution in any of these cases could potentially result in significant liabilities or require material changes to products and manufacturing processes. The risk factors section also highlights ongoing volatility in selling prices, competitive pressures, geopolitical risks, and supply chain dependencies.
06—Continue