Memory chip giant Micron Technology (NASDAQ: MU) reported fourth-quarter fiscal 2026 results after the bell on Wednesday, with both revenue and profit surpassing Wall Street expectations, alongside guidance for the next quarter that topped market forecasts.

As global AI infrastructure buildout continues to drive demand for high-bandwidth memory (HBM), DRAM, and data center storage, Micron expects further strengthening in fiscal 2027 performance.

Micron's fourth-quarter revenue reached $54.23 billion, up from $41.46 billion in the prior quarter and far above $11.32 billion in the same period last year. Non-GAAP diluted earnings per share came in at $33.42, compared to just $3.03 a year earlier.

According to analyst consensus estimates, Wall Street had previously expected Micron's quarterly revenue at $51.49 billion and earnings per share of $31.83. On a GAAP basis, Micron's quarterly net income reached $37.7 billion, with diluted earnings per share of $32.87; non-GAAP net income reached $38.4 billion. Adjusted gross margin rose to 87%, up from 84.9% in the prior quarter and well above 45.7% a year earlier.

Micron Chairman and CEO Sanjay Mehrotra said the company delivered record-breaking results in fiscal 2026 and expects further strengthening in fiscal 2027. The company is increasing investments in technology, products, and manufacturing capabilities to meet growing customer demand.

Next Quarter Revenue Guidance Up to $63 Billion, Again Exceeding Market Expectations

Even more closely watched by the market than the fourth-quarter results was Micron's latest business outlook. Micron expects first-quarter fiscal 2027 revenue of $61.5 billion, plus or minus $1.5 billion, meaning a range of $60 billion to $63 billion; non-GAAP diluted earnings per share are projected at $38.15, plus or minus $1; adjusted gross margin is expected at approximately 86.25%.

This guidance is significantly above market expectations. Media cited analyst data showing that the market had previously expected Micron's first-quarter revenue at approximately $57.02 billion and adjusted earnings per share at approximately $35.40. This also means that even after the rapid growth in fiscal 2026, Micron expects AI-driven memory chip demand to continue in the new fiscal year.

Data Center Business Explodes, Core Segment Quarterly Revenue Grows Over 10-Fold Year-Over-Year

AI data centers have become the core driver of Micron's growth. In the fourth quarter, Micron's Cloud Memory Business Unit revenue reached $16.28 billion, up from $13.77 billion in the prior quarter and $4.54 billion in the same period last year.

The growth was even more remarkable in the Core Data Center Business Unit, which posted fourth-quarter revenue of $18 billion, compared to $11.52 billion in the prior quarter and just $1.58 billion a year earlier — representing more than a 10-fold increase in a single year. The business achieved a gross margin of 90% and an operating margin of 85%.

As global technology companies build AI data centers on a massive scale, demand for DRAM, high-bandwidth memory, and high-speed flash storage continues to grow. HBM is a critical component of AI accelerators such as Nvidia's, while large AI servers and data centers also require substantial amounts of high-speed storage products — and Micron covers both markets.

Media reports indicate that Micron's current order demand for AI-related memory products far exceeds its existing production capacity. Major technology companies including Amazon and Alphabet continue to invest heavily in AI infrastructure this year, providing sustained demand for HBM and other high-performance storage products.

Fiscal 2026 Revenue Tops $130 Billion, Net Income Surges Year-Over-Year

Looking at full-year performance, Micron's growth in fiscal 2026 was even more pronounced. The company's full-year revenue reached $133.19 billion, more than tripling from $37.38 billion in fiscal 2025; GAAP net income reached $84.97 billion, compared to $8.54 billion in the prior fiscal year. Non-GAAP net income reached $86.76 billion, with diluted earnings per share of $75.52, a substantial increase from $8.29 in the previous fiscal year.

Full-year operating cash flow reached $89.68 billion, far above $17.53 billion in the prior fiscal year. Micron's fourth-quarter net capital expenditure was $10.77 billion, totaling $27.37 billion for the full year; adjusted free cash flow reached $33.2 billion in the fourth quarter and $62.31 billion for the full year. As of the fiscal year-end, the company held $73.48 billion in cash, marketable investments, and restricted cash.

Ramping Up Next-Generation Memory Products, Betting on Long-Term AI Demand

Facing persistently growing AI computing demand, Micron is further expanding its technology and manufacturing investments. The company said its server LPDDR SOCAMM product portfolio revenue more than doubled quarter-over-quarter in the fourth quarter, and it has begun sampling the industry's first 512GB ultra-high-capacity DDR5 RDIMM, with transfer speeds of up to 9200 MT/s.

Additionally, Micron's 1-gamma process-based high-speed server RDIMM has completed customer qualification with multiple customers, and its 7600 PCIe Gen 5 and 9650 PCIe Gen 6 SSDs have also shipped to major customers for AI applications such as KV-cache. The company also said its AI workstation products have secured design wins with all tier-one OEM customers. In August, Micron also announced plans to invest up to $10 billion over the next 10 years to build Micron Research Labs in Boise, Idaho, betting on next-generation memory and AI technology research.

The AI boom has also pushed the entire memory chip industry into a prosperous cycle. Besides Micron, Samsung Electronics and SK Hynix are also benefiting from rapidly growing HBM and DRAM demand. However, surging memory prices are beginning to pass through to the consumer electronics industry, with smartphone and PC manufacturers facing higher component cost pressures.

Stock Price Surges About 550% in a Year, Market Focuses on Sustainability of AI Memory Boom

Driven by the explosion in AI memory demand, Micron's stock has risen about 275% year-to-date and approximately 550% over the past 12 months, making it one of the best-performing semiconductor stocks in the AI infrastructure boom. Following the strong earnings release, Micron's shares edged slightly higher in after-hours trading. Latest after-hours data showed Micron at approximately $1,071.92, up about 0.6% from the regular session closing price.

Although there has been more recent market discussion about the scale of AI investment, the development of frontier AI models, and the sustainability of massive data center capital expenditures, Micron's latest results show that at least in the memory chip segment, AI infrastructure demand remains strong. The company's fourth-quarter revenue nearly quadrupled year-over-year, its data center business expanded rapidly, and its next-quarter revenue guidance once again significantly exceeded market expectations. As demand for HBM, server DRAM, and high-speed data center SSDs continues to grow, whether AI infrastructure buildout can sustain its current investment intensity and whether Micron can maintain high gross margins while expanding capacity will become key focuses for investors going forward.