Micron Technology (MU) investor relations material

Executive summary

• Achieved record quarterly revenue of $41.46 billion, up 346% year-over-year and 74% quarter-over-quarter, driven by strong DRAM, HBM, and NAND demand, improved pricing, and margin expansion.

• Net income for the quarter reached $28.24 billion (GAAP), with diluted EPS of $24.67 (GAAP) and $25.11 (non-GAAP).

• 16 Strategic Customer Agreements (SCAs) signed, covering up to half of future revenue, with take-or-pay terms, price bands, and $22+ billion in cash and commitments.

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

• Record free cash flow and strong capital returns, with a commitment to return 100% of free cash flow to shareholders, mainly via share repurchases and dividends.

Financial highlights

• FQ3-26 revenue: $41.5B, gross margin: 84.9% (non-GAAP), operating income: $33.68B (non-GAAP), net income: $28.86B (non-GAAP), diluted EPS: $25.11 (non-GAAP).

• Cash from operations: $25.39B; adjusted free cash flow: $18.3B; capital expenditures: $7.1B.

• Ended the quarter with $30.2B in cash, marketable investments, and restricted cash.

• DRAM revenue: $31.3B (76% of total), NAND revenue: $9.9B (24% of total); enterprise SSD revenue reached $5B.

• Quarterly dividend of $0.15 per share declared.

Outlook and guidance

• Q4 FY2026 revenue guidance: $50.0B ± $1.0B, gross margin ~86%, operating expenses ~$1.65B (non-GAAP), diluted EPS $31.00 ± $1.00 (non-GAAP).

• Free cash flow and cash generation expected to increase in Q4.

• Fiscal 2026 capex expected at ~$27B, with further increases planned for 2027, focused on capacity expansion.

• Market tightness for HBM and DRAM 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.