Micron CEO Sanjay Mehrotra speaks at the groundbreaking ceremony for the company’s semiconductor manufacturing facility in Clay, New York, on Jan. 16, 2026.
Heather Ainsworth Bloomberg | Getty Images
MicronRevenue quadrupled in the fiscal third quarter, the company said Wednesday, as the memory maker continues to benefit from growing demand linked to the artificial intelligence boom. Shares rose more than 16% in extended trading.
Here’s how the memory maker performed compared to LSEG’s consensus ratings:
- Net worth: $41.46 billion compared to the estimated $35.84 billion
- EPS: $25.11, adjusted, compared to $20.78 estimated
Revenue was up from $9.3 billion a year ago, McCron said in a statement. For the current quarter, the company said it expects revenue of about $50 billion, up from $11.3 billion a year ago. Analysts were looking for a forecast of $43.58 billion in revenue, according to LSEG.
Memory prices have skyrocketed in the past few years as AI chips eat up the entire production capacity of vendors’ small plants. As the data center demand is increasing day by day, the prices are increasing for the memory used in smartphones, laptops and other gadgets.
“Our customers recognize that memory and storage shortages will take a long time to improve, as we expect industry supply to improve gradually through 2028,” Micron CEO Sanjay Mehrotra said in a call with analysts.
That turned Micron into a Wall Street darling as its technology is key to the chips it makes Nvidia again Googleand the servers that house the processors of those companies. Micron’s stock price has risen nearly 700% in the past year, pushing the company’s market cap past $1 trillion.
Micron said Wednesday it has signed 16 long-term agreements with customers such as data center operators and auto manufacturers that cover sales periods of three to five years.
“Once completed, we expect about half or more of the company’s revenue to come from these” strategic customer deals, Mehrotra said. He added that they have formed binding agreements to buy volumes of Micron chips.
Macron said he expects a financial commitment of 22 billion dollars in 16 long-term agreements.
Micron’s gross margin, the remaining profit after accounting for cost of goods sold, fell to 84.9% in the third quarter from 74.9% in the prior period and 39% a year ago. Micron’s margins topped analyst estimates.
Net income during the quarter was $28.24 billion, or $24.46 per share, compared to $1.89 billion, or $1.68 per share in the year-ago period.
While all of Micron’s business units saw revenue increase, the most explosive growth was in the data center business, where sales increased by more than seven billion to $11.5 billion from $1.53 billion in the same period last year. In addition to memory, Micron also recorded more than $5 billion in data center solid state drive revenue, the company said in a statement.
Cloud storage rose more than 300% to $13.77 billion.
Sales of memory devices also increased as prices increased. The mobile and client business unit saw revenue grow more than 250% to $11.52 billion, and memory for automotive and embedded applications more than quadrupled to $4.63 billion in sales.
The company said shareholders will receive a 15 cent dividend in July.
WATCH: Micron’s earnings are focused on net income and dividends through 2027
