Micron Technology reported third-quarter 2026 revenue of $41.4 billion, a sharp increase from $9.3 billion in the same period last year, driven by strong demand for memory chips fueled by artificial intelligence growth and supply shortages [1, 2, 3, 4]. Adjusted diluted earnings per share rose to about $25.11 from $1.91 a year earlier, while net income reached $28.24 billion, compared to $1.89 billion in Q3 2025 [1, 2, 3, 4].
The company’s adjusted gross margin for the quarter more than doubled to roughly 84.9%, reflecting improved pricing and supply dynamics [2]. Micron attributed the gains to soaring memory chip prices, citing AI data centers, phones, laptops, and other devices as key demand drivers amid ongoing supply constraints [5, 6, 1, 2].
Micron also announced fiscal Q4 2026 revenue guidance of about $50 billion, surpassing Wall Street estimates of $43.2 billion, and forecast adjusted earnings per share at $31, well above analyst expectations near $25.31 [7, 6, 2, 3]. The company expects capital expenditures of $10 billion in Q4 to expand manufacturing capacity and respond to demand [3, 4].
CEO Sanjay Mehrotra said there is no clear timeline for when memory chip supply will catch up to demand, likely persisting beyond 2027 with gradual improvements forecast starting in 2028. He stated, "There was no line of sight to when supply will catch up with demand... The situation will persist beyond calendar 2027, with availability improving gradually in 2028" [6, 2].
To stabilize pricing and manage demand, Micron has secured 16 strategic customer agreements averaging three years in length. Bloomberg analyst Jake Silverman noted these contracts "can sustain upward pricing revisions through at least 2027, albeit at a decelerating pace," and also help reduce pricing volatility by around 2029 [6].
Micron’s stock surged more than 15% at its recent peak after the results release, contributing to a year-to-date gain estimated between 270% and 700%, depending on the source. The company’s market capitalization topped $1 trillion following the stock price rise [5, 6, 1, 2, 3].
However, on June 23, 2026, Micron shares dropped over 13% amid a broader chip sector sell-off linked to market concerns over risky leveraged ETFs in South Korea. Lee Chan-jin, governor of South Korea's Financial Supervisory Service, warned these ETFs are "high-risk products" with about 92% held by retail investors, adding that trading had not cooled despite warnings [8].
Micron continues expanding manufacturing capacity but expects elevated memory chip prices to persist in the foreseeable future due to ongoing tight supply [6, 2]. Fiscal Q4 earnings and capital expenditure reports are due at the end of August, when the company will provide updates on these trends and production progress [3, 4].
