Micron Technology released its fiscal fourth-quarter results for fiscal year 2026, with all core metrics exceeding the upper end of its guidance. Fourth-quarter revenue reached $54.23 billion, surging 31% quarter-over-quarter and soaring 379% year-over-year; non-GAAP gross margin hit 87.0%. Non-GAAP net income for the quarter was $38.398 billion, with diluted earnings per share of $33.42; operating cash flow reached $43.973 billion, adjusted free cash flow was $33.20 billion, and the company's liquidity reserve at period-end stood at $75.48 billion.

For the full fiscal year 2026, Micron Technology (MU) total revenue soared to $133.188 billion, up 256% year-over-year; DRAM full-year revenue broke through the $100 billion mark, reaching $100.679 billion.

All four AI-driven business segments rose across the board, with data center SSD single-quarter revenue approaching $10 billion. AI computing demand drove revenue across all business units to record highs: 1. Core Data Center Business Unit (CDBU) revenue was $18.002 billion, surging 56% quarter-over-quarter, with gross margin of 90%. Data center SSD single-quarter revenue approached $10 billion, more than a tenfold increase from the same period last year, and the company expects to secure a record high in data center SSD market share for the fifth consecutive year in 2026. 2. Cloud Memory Business Unit (CMBU, primarily HBM) revenue was $16.283 billion, with gross margin of 83%. HBM shipment growth outpaced the company's overall revenue growth; Micron has locked in the vast majority of HBM bit supply for 2027, with product pricing rising significantly year-over-year, and the gross margin gap between HBM and standard DRAM continues to narrow. The company is jointly developing custom NVHBM (HBM4E) with Nvidia, which will be used in next-generation GPU and NVLink Fusion platforms. 3. Mobile and Client Business Unit (MCBU) revenue was $13.114 billion, with gross margin of 90%; next-generation 1γ DRAM products already account for nearly half of the segment's revenue. 4. Automotive and Embedded Business Unit (AEBU) revenue was $6.824 billion, up 47% quarter-over-quarter. Management is bullish on the physical AI track, noting that L4+ autonomous driving memory demand exceeds 200GB, humanoid robot storage demand is comparable to high-level autonomous driving, and multiple customers have begun sampling next-generation storage products.

By product dimension: DRAM revenue this quarter was $39.771 billion, with ASP rising by high double digits quarter-over-quarter; NAND revenue was $14.102 billion, with ASP surging 30% quarter-over-quarter and bit shipments growing 10% quarter-over-quarter.

$32 Billion in Customer Long-Term Orders! 26 Strategic Lock-In Agreements, Some Contracts Extended to 2031

Micron disclosed progress on Strategic Customer Agreements (SCA): it has already signed 26 multi-year "take-or-pay" long-term contracts, and by 2030, long-term contract revenue is expected to account for more than 35% of the company's total revenue. Total customer financial commitments reached $32 billion, the vast majority in cash deposits. Three-quarters of the long-term contracts have price floors and ceilings, with the remainder priced dynamically based on the market; some contracts have already been extended to 2031, and all newly signed long-term contracts are executed at current high market prices. The long-term contracts stabilize Micron's long-term supply planning while securing capacity for downstream customers.

Next Quarter Guidance: Q1 FY2027 Revenue Seen at $61.5 Billion, Gross Margin to Be the Trough for the Fiscal Year

Micron provided its fiscal year 2027 first-quarter outlook (non-GAAP): - Revenue: $61.5 billion, plus or minus $1.5 billion - Gross margin: approximately 86.25%, with management indicating Q1 will be the low point for FY2027 gross margin, with gross margin recovering in subsequent quarters - Diluted earnings per share: $38.15, plus or minus $1, with an effective tax rate of approximately 15.5%.

FY2027 overall assessment: The company expects full-year revenue to grow quarter-over-quarter, setting a new annual record; full-year operating expenses are expected to increase by approximately $2.5 billion, mainly directed toward AI-related R&D and employee performance incentives. Due to the impact of high employee bonus inventory carryover accrued in Q4, cost pressure will be concentrated in Q1 of fiscal year 2027. On dividends, a payout of $0.15 per share will be distributed on October 29.

Major Industry Assessment: Memory Supply-Demand Gap Persists, No Timeline Yet for Market Rebalancing

Micron management provided a core assessment of the memory cycle: DRAM and NAND industries will continue to face supply tightness in 2027-2028, and there is currently no clear time window for supply and demand to return to balance. Even as the entire industry pushes forward with cleanroom capacity expansion, combined with AI bringing continuously better-than-expected incremental demand, a structural gap remains. - DRAM: 2026 industry bit shipments to grow by mid-teens percentage; 2027-2028 to slow to low double-digit growth, with supply persistently constrained. - NAND: 2026 industry bit shipments to grow by low-20%+; 2027-2028 to maintain mid-20%+ growth, with supply falling short of demand. - HBM bit shipment growth will continue to significantly outpace standard DRAM through 2028.

Global Multi-Point Investment in Capacity Expansion, Capital Expenditure Raised, Multiple New Fabs to Come Online in 2027-2030

Facing the tight supply landscape, Micron has decided to raise its fiscal year 2027 capital expenditure plan, with new funds mainly directed toward cleanroom civil construction to ensure new capacity release after the end of 2028. Global capacity layout milestones: - United States: ID1 fab expected to produce wafers in mid-2027; ID2 fab by the end of 2028; the new New York fab will not begin production until 2030. - Singapore: HBM advanced packaging facility ahead of schedule, production to begin in early 2027; brand-new NAND facility to begin production in the second half of 2028. - Japan: new DRAM fab breaks ground, with initial output by the end of 2028. The company noted that it takes multiple quarters from wafer output to capacity ramp contributing revenue at a new wafer fab.

Management Personnel Updates

Alongside the earnings report, executive appointments were announced: 1. Manish Bhatia appointed President and Chief Operating Officer (COO), fully responsible for business units and global operations, bearing overall company P&L responsibility. 2. Dr. Scott DeBoer appointed President and Chief Technology and Product Officer, overseeing the company-wide technology roadmap, R&D, and Micron Research.