Micron Reports Record Revenue and Guidance for Q4 Despite Stock Decline
Micron Technology (NASDAQ:MU) reported $41.5 billion in revenue for its fiscal third quarter of 2026, surpassing the entire year's revenue from 2025 by nearly $4 billion. The company guided to a record-breaking fourth-quarter revenue range of $50 billion with an adjusted gross margin near 86%. Despite these strong results and guidance, Micron’s stock has fallen about 24% since its 52-week high. The surge in demand is largely driven by artificial intelligence data centers. In the third quarter alone, cloud memory sales reached $13.8 billion—four times higher than a year ago—and core data center revenue hit $11.5 billion from just $1.5 billion previously. Micron also outperformed its own guidance for Q3, exceeding expected revenue by over $7 billion and achieving an 84.9% gross margin. The fourth-quarter forecast includes benefits from a longer quarter due to the extra week in fiscal 2026’s calendar as well as continued pricing strength. Management attributes this sustained performance to multi-year take-or-pay contracts with customers, which provide stability for future revenue and profit.
Topics: AI demand memory chips revenue growth semiconductors