Micron beat third-quarter revenue estimates by $6 billion with sequential growth over 70% and guided fourth-quarter revenue of $50 billion alongside an 86% gross margin forecast. The business is sold out through calendar 2026 and remains supply-constrained into 2027 as next-generation server demand outpaces capacity.
Micron delivered a third-quarter revenue beat of approximately $6 billion, achieving sequential revenue growth north of 70%. The company also raised guidance for the upcoming quarter to about $50 billion with an expected gross margin of 86%, underscoring strong top-line momentum and impressive profitability.
Management confirmed that current production cannot meet booming demand, with capacity fully booked through calendar 2026. Projections indicate supply shortages will persist into calendar 2027 as customers adopt next-generation server platforms requiring higher memory content.
Gross margins, already in the low 80% range this quarter, are forecast to expand further to 86% in the next quarter. This margin leverage, paired with accelerating revenue, positions Micron for significant operating profit growth and cash flow generation.
The high-bandwidth memory market remains concentrated among three players: Micron, Samsung, and SK Hynix. Barriers to entry and strong demand from data centers and AI deployments limit competitive threats, allowing Micron to maintain pricing power and capacity utilization.
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