Micron Technology, the largest memory chipmaker in the United States, posted another record quarterly performance, driven by an artificial intelligence (AI)-led memory boom. Quarterly revenue topped $40 billion for the first time, and the gross margin approached 85%.
Micron announced Monday that revenue for the third quarter (March-May) of fiscal 2026 reached $41.456 billion (about 64 trillion won). The figure was up 74% from the previous quarter ($23.86 billion) and surged nearly 4.5-fold compared with $9.301 billion a year earlier. It far exceeded both the company's guidance (about $33.5 billion) and Wall Street's forecast of about $35.8 billion in quarterly revenue. In after-hours trading, the stock rose nearly 13%.
The improvement in profitability was even steeper. The gross margin under GAAP (U.S. accounting standards) was 84.6%, more than double the 37.7% recorded a year earlier. Operating profit was $33.318 billion, and net profit was $28.243 billion ($24.67 per share). Earnings per share (EPS) came to $25.11. That marked a more than 13-fold jump from adjusted EPS of $1.91 a year earlier, and was about 30% above the market forecast of $20.86 compiled by FactSet.
The performance was driven by high-bandwidth memory (HBM), used in AI accelerators, and DRAM for data centers. By business unit, the cloud memory division recorded revenue of $13.769 billion and the core data center division $11.524 billion, with the two data center segments accounting for more than half of total revenue. The gross margins of the two divisions reached 83% and 87%, respectively. The mobile and client segment ($11.521 billion) and the automotive and embedded segment ($4.634 billion) also set new quarterly revenue records.
A structural shortage, in which supply cannot keep up with demand, is supporting the price increases. Micron said it is "in a situation where it can meet only 50% to 66% of customer demand over the medium term." Its HBM volume for 2026 is already sold out under fixed-price contracts. Sanjay Mehrotra, Micron's chairman and chief executive officer (CEO), said, "These results reflect the strategic value of memory in the AI era," adding, "Through multi-year strategic customer agreements, we will significantly enhance the sustainability and predictability of our performance."
The company's next-generation product competitiveness also stood out. Micron said it has begun shipping HBM4 based on 1-beta DRAM in volume to major customer platforms and has supplied qualification samples to multiple end customers. HBM4E based on 1-gamma DRAM is being developed with a target of mass production in 2027.
For fourth-quarter revenue, the company offered guidance of $49 billion to $51 billion. With a gross margin of about 86% and adjusted EPS of $30 to $32, it signaled another record-setting performance. Third-quarter operating cash flow was $25.388 billion, and adjusted free cash flow was $18.304 billion. The board approved a quarterly dividend of $0.15 per share.
Among the top three memory makers, including SK hynix and Samsung, Micron has an earlier fiscal year, serving as a barometer for industry conditions. Expectations are likely to grow further for the HBM and DRAM windfall at SK hynix and Samsung Electronics, which are set to report earnings in late July.
