Overview
Micron Technology reported fiscal third‑quarter 2026 results that far exceeded Wall Street expectations and provided a markedly upbeat outlook for the upcoming quarter, prompting a sharp rise in its share price and a market‑value increase of over $200 billion.
Financial Results
- Revenue reached a record $41.46 billion, topping the consensus forecast of $35.69 billion and rising sharply from $9.30 billion in the comparable quarter a year earlier.
- Adjusted earnings per share were $25.11, well above the analyst estimate of $20.49.
- The company invested $7.1 billion in capital expenditures during the quarter.
- Adjusted free cash flow amounted to $18.3 billion.
- The board declared a quarterly dividend of $0.15 per share, payable on July 21.
Guidance
- Fiscal fourth‑quarter revenue is projected between $49 billion and $51 billion, considerably higher than the consensus estimate of $43.24 billion.
- Fiscal fourth‑quarter earnings per share are forecast at $30‑$32, versus Wall Street expectations of $25.31.
- Gross margin for the upcoming quarter is expected to be 86%, surpassing the consensus estimate of 81.9%.
Market Reaction
- Micron’s shares rose roughly 19% in pre‑market trading following the release.
- The strong results and guidance added more than $200 billion to the company’s market capitalization, pushing the firm past the $1 trillion mark.
Commentary
- Raymond James analyst Melissa Fairbanks lifted her price target to $1,500 per share, describing the performance as “running out of superlatives.”
- BofA analyst Vivek Arya reiterated a constructive view on memory’s role in AI and the durability of the cycle.
- CEO Sanjay Mehrotra said tight supply conditions are expected to persist beyond calendar 2027 due to AI‑driven demand across all segments and structural supply constraints.
- Deepwater Asset Management’s Gene Munster noted on social media that demand could outpace supply into late calendar 2028 or even 2029.
- Direxion’s Jake Behan highlighted that HBM pricing power, rather than volume alone, is driving the higher earnings profile.
- Wedbush analysts observed that the memory and chip trade remains intact and is still in the early stages of its expansion.
Product & Demand Highlights
- The company shipped high volumes of HBM4 memory for a lead‑customer platform.
- Progress was reported on next‑generation HBM4E products.
- Production of advanced SSD and LPDDR5X memory solutions was expanded.
- AI‑driven demand continues to rise across data‑center workloads and consumer electronics such as smartphones and laptops, reinforcing the strategic value of Micron’s memory technologies.