Micron posts quarterly revenue of $54.23 billion, beats estimates amid tight supply
Key Facts
Micron announced on September 30, 2026, revenue of $54.23 billion for the fourth quarter of its fiscal 2026, beating analysts' estimates amid strong demand and limited supply that the company said supported pricing and profitability. The earnings release covers the fourth quarter and fiscal year ended September 3, 2026, according to the company's statement. Analysts had estimated revenue of $51.07 billion for the reported quarter, according to Reuters. Revenue rose from $41.46 billion in the third quarter of the same fiscal year. Revenue in the corresponding period of fiscal 2025 was $11.32 billion, according to the comparison in the earnings statement. In its annual report filed with the U.S. Securities and Exchange Commission, the company attributed improved pricing and profitability across its product portfolio to "strong overall demand for dynamic random-access memory and flash memory and limited supply."
Micron reported fourth-quarter net income of $37.70 billion under U.S. generally accepted accounting principles, according to its earnings statement. Diluted earnings per share were $32.87 for the same period. Adjusted diluted earnings per share were $33.42, according to figures the company released alongside its GAAP results. Adjusted earnings topped analysts' estimates of $31.61 per share, according to Reuters, putting both earnings and revenue above expectations for the reported quarter. For the full fiscal year, Micron's revenue reached $133.19 billion in 2026, compared with $37.38 billion in fiscal 2025, according to the company's annual statement.
Micron reported operating cash flow of $43.97 billion in the fourth quarter of fiscal 2026, according to its statement. Adjusted free cash flow for the same quarter was $33.20 billion, among the liquidity figures the company released with its earnings. Net capital expenditure for the period was $10.77 billion, according to the reported quarterly figures. The company ended the fiscal year with total cash, marketable investments and restricted cash of $73.48 billion. On customer commitments, management said during the earnings call that financial commitments under strategic agreements and their extensions had risen to $32 billion, according to the transcript published by Investing.com.
The chief executive said during the call that the "vast majority" of customers' financial commitments consisted of cash deposits. In a separate item concerning strategic contracts, the chief financial officer said remaining performance obligations under these agreements totaled about $150 billion, according to the call transcript. Strategic customer agreements are based on a "take-or-pay" principle, Micron said in its annual report filed with the U.S. Securities and Exchange Commission. These agreements include binding commitments to purchase specified quantities over multiple years, tying customer relationships to contractual volumes spanning multiple periods. Pricing under most strategic agreements is subject to floors and ceilings, according to the annual report, alongside volume commitments.
For the first quarter of fiscal 2027, Micron forecast revenue of $61.5 billion, according to guidance reported by Reuters alongside the earnings release. That figure represents the midpoint of the company's forecast range, with a margin of plus or minus $1.5 billion. It compares with analysts' average estimate of $57.02 billion, according to London Stock Exchange Group data cited by the agency, putting Micron's guidance above market expectations for the coming period. On supply, an Investing.com report cited Bernstein as saying Micron expects tighter supply in 2027 and 2028 than in 2026. On capacity additions, the expansion of advanced packaging for high-bandwidth memory in Singapore aims to increase capacity starting in early calendar 2027, according to the company's annual report. Micron expects DRAM wafer production at its first Boise plant to begin in mid-calendar 2027.