Micron Technology (MU) investor relations material

Executive summary

• Achieved record Q3 FY2026 results, with revenue of $41.5B, gross margin of 84.9%, and net income of $28.86B, all exceeding guidance high end.

• Data center revenue surpassed $25B, annualized over $100B; enterprise SSD revenue exceeded $5B.

• 16 Strategic Customer Agreements (SCAs) signed, covering 20% of DRAM and a third of NAND volume through 2030, totaling $22B+ in cash and commitments.

• Demand for HBM, DRAM, and NAND continues to far exceed supply, with multi-year customer commitments extending beyond 2027.

• Capital return to shareholders remains a priority, with a commitment to return 100% of free cash flow, primarily through share repurchases.

Financial highlights

• FQ3-26 revenue: $41.5B, up 74% Q/Q and 346% Y/Y; gross margin: 84.9%; operating income: $33.68B; net income: $28.86B; diluted EPS: $25.11.

• Cash from operations: $25.39B; adjusted free cash flow: $18.3B; ended quarter with $30.2B in liquidity.

• DRAM revenue: $31.3B (76% of total), up 67% Q/Q; NAND revenue: $9.9B (24% of total), up 99% Q/Q.

• Recent 30% dividend increase, with $0.15/share dividend declared.

• $3.4B returned to shareholders since FY-23 via buybacks and dividends.

Outlook and guidance

• Q4 FY2026 revenue guidance: $50B ± $1B; gross margin expected at ~86%; diluted EPS guidance: $31.00 ± $1.00.

• Fiscal 2026 capex expected at ~$27B; Q4 capex ~$10B; fiscal 2027 capex to rise, focused on cleanroom expansion.

• Free cash flow forecasted to increase substantially in Q4.

• Market tightness for HBM expected to persist beyond 2027, with HBM TAM projected to exceed $100B in 2027.

• Supply growth for DRAM and NAND will remain below demand for the foreseeable future.