The news
Micron earnings for the fiscal fourth quarter, reported on September 30, 2026, showed revenue of $54.23 billion, up from $11.32 billion a year earlier, as demand for memory used in AI data centers kept climbing. Micron Technology (MU) also forecast higher sales for the current quarter.
The quarter ended September 3, 2026. GAAP net income was $37.70 billion, or $32.87 per diluted share, according to Micron's earnings release filed with the Securities and Exchange Commission. On a non-GAAP basis, which excludes items such as stock-based compensation, net income was $38.40 billion, or $33.42 per share. Revenue was $41.46 billion in the prior quarter.
Gross margin, the share of revenue left after the cost of making the chips, was 86.8% on a GAAP basis and 87.0% on a non-GAAP basis. Operating cash flow reached $43.97 billion. For the full fiscal year 2026, Micron reported revenue of $133.19 billion and GAAP net income of $84.97 billion, compared with fiscal 2025 revenue of $37.38 billion.
SiliconANGLE reported that the quarter beat analyst estimates of $51.07 billion in revenue and $31.61 in adjusted earnings per share. It said DRAM, the working memory used in servers and PCs, brought in $39.8 billion, about 74% of sales, and that the shares barely moved in after-hours trading on September 30.
For the first quarter of fiscal 2027, Micron guided revenue to $61.5 billion, plus or minus $1.5 billion, with GAAP gross margin of about 85.95% and GAAP earnings of $37.84 per share, plus or minus $1.00. SiliconANGLE put the Wall Street expectation at $57 billion in revenue.
The bigger message came on the earnings call. Chairman and CEO Sanjay Mehrotra said Micron sees demand exceeding supply in calendar 2027 and 2028, with greater tightness in the industry in both years than in 2026, according to The Register. He also said the company does not have a view of when supply and demand will return to balance, and that customers will pay much higher prices than this year, The Register reported.
The numbers
- Fiscal Q4 revenue
- $54.23 billion (vs. $11.32 billion a year earlier)
- Fiscal Q4 GAAP net income
- $37.70 billion
- Non-GAAP gross margin
- 87.0%
- Fiscal 2026 revenue
- $133.19 billion
- Fiscal Q1 2027 revenue guidance
- $61.5 billion ± $1.5 billion
Why CEOs should care
For technology buyers, the CEO's outlook is a planning signal. If the largest US memory maker expects supply to be tighter in 2027 and 2028 than in 2026, servers, PCs and AI hardware that depend on DRAM and high-bandwidth memory (HBM, the stacked memory packaged next to AI processors) are unlikely to get cheaper soon. Buyers should ask vendors how memory costs are reflected in quotes, how long prices are held, and whether supply commitments can be locked in for 2027.
CFOs and budget owners should treat memory as a cost line that may rise, not fall, over the next two budget cycles. Hardware refresh plans built on 2025 pricing deserve a second look, and AI projects that assume falling cloud and hardware costs should be stress-tested against flat or higher prices. Contracts with cloud providers and equipment makers may carry price-adjustment clauses worth reviewing now.
Boards and investors should note the concentration. Margins near 87% show how much pricing power memory makers hold while supply is short. That is good for suppliers and expensive for everyone downstream, and it raises a question for every AI plan: what happens to the business case if a key component stays scarce through 2028?
The bigger picture
Memory has become one of the tightest links in the AI supply chain. AI accelerators need large amounts of HBM, and memory makers have shifted capacity toward it, which leaves less for conventional DRAM used in ordinary servers and PCs. The Register reported that Micron plans about $25 billion of capital spending in the first half of its new fiscal year and expects new factories to come online in 2028, while cautioning that new plants will not immediately ease availability or pricing.
SiliconANGLE noted that Micron is the only US supplier of HBM and is developing a custom HBM implementation with Nvidia. That makes Micron central both to AI hardware supply and to US efforts to build more chip capacity at home.
What’s next
Watch Micron's fiscal first-quarter 2027 results against its $61.5 billion guidance, contract pricing updates from Samsung and SK hynix, and whether PC and server makers raise prices or cut memory configurations as supply stays tight into 2028.
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