Micron Q3 Revenue Soars to $41.4B, Net Profit Hits $28.2B
MU•Micron posted $41.4 billion in Q3 revenue, up from $9.3 billion a year earlier, and net income of $28.24 billion, or $24.67 per share. The memory maker delivered an 85% gross margin, sold out its 2026 high-bandwidth memory output, and guided $50 billion in next-quarter revenue with $31 EPS.
1. Q3 Financial Highlights
Micron reported Q3 revenue of $41.4 billion, topping the $35.7 billion estimate, and delivered net income of $28.24 billion, or $24.67 per share, compared with under $2 billion a year earlier. Adjusted EPS reached $25.11, driving shares more than 15% higher in after-hours trading.
2. AI Demand and Contracted Sales
Demand from major cloud providers building AI data centers has fueled enormous need for high-bandwidth memory chips. Micron has sold out its entire 2026 production of these chips under fixed-price, multi-year contracts, securing predictable revenue streams through the AI build-out.
3. Profitability and Margins
Tight supply conditions, with new fabs not adding meaningful output until 2028, have granted Micron exceptional pricing power. The company achieved an 85% gross margin for the quarter, rivaling or exceeding margins at larger peers such as Nvidia and Meta.
4. Forward Guidance and Investment
Micron expects roughly $50 billion in revenue and $31 EPS next quarter, signaling continued acceleration. To meet demand, it raised fiscal-year capital spending to $27 billion and plans further increases in 2027 to expand production capacity.
