Micron Reports Q3 FY2026 Revenue of $41.5B, Hints at Higher Earnings in Q4; Sees Supply Tightness Extending Through 2027

On June 24, Micron Technology released third-quarter fiscal 2026 results and held an earnings call with analysts. Q3 revenue reached $41.5 billion, up 74% sequentially and 346% year-over-year, setting a record high. Gross margin expanded to 84.9%, and diluted EPS hit $25.11, with both exceeding company guidance.

CEO Sanjay Mehrotra attributed the strong results to accelerating AI demand. Data center revenue surged to $11.5 billion in Q3, more than double year-over-year, while the company's annualized data center run rate exceeded $100 billion. The company expects memory and storage supply constraints to persist through 2027 and beyond due to sustained AI demand and production capacity limitations. For Q4, Micron projects revenue of $50 billion and EPS of $31 at the midpoint. The company has signed 16 strategic customer agreements covering approximately 20% of DRAM output and one-third of NAND output, with remaining performance obligations exceeding $100 billion.