● Covered by 4 sources · 5 reportsMedium impact5 neutral
Micron Reports Strong Q4 2026 Results Driven by AI Memory Demand
Key points
- Q4 2026 revenue was $54.23 billion, up 379% year-over-year.
- Adjusted EPS reached $33.42, a 1,002% increase.
- Demand for DRAM and NAND, especially HBM for AI, exceeds supply.
- Micron expects supply tightness to continue through 2027 and 2028.
- Micron's Q4 2026 revenue was $54.2 billion.
- Micron's Q4 2026 earnings call was on September 30.
- Micron reported a record gross margin of 86.25%.
- Micron has sold most of its capacity for next year.
- NAND and DRAM shipments are expected to grow in the low-to-mid 20s percentage range for the next two years.
- Micron CEO Sanjay Mehrotra expects demand to exceed supply through 2028.
- Micron no longer sells consumer RAM.
- Micron plans to open new clean rooms for memory manufacturing in 2028.
- Micron's Q4 2026 earnings were released on Wednesday.
- Micron's Mobile and Client business unit had an 88% operating margin.
- Micron's Mobile and Client business shipped less memory last quarter.
- Core Data Center operating margin surged from 25% to 85%.
- Automotive and Embedded operating margin climbed from 20% to 79%.
- Mobile and Client unit operating margin was 29% in fiscal Q4 2025.
- Cloud Memory operating margin moved from 48% to 76%.
Record-Setting Financial Performance
Micron announced fiscal Q4 2026 revenue of $54.23 billion, surpassing the consensus forecast of $51.07 billion. This represents a 379% increase year-over-year. Adjusted earnings per share (EPS) also saw a significant rise, reaching $33.42, a 1,002% increase, exceeding expectations of $31.61.
Demand Outpacing Supply in Memory Market
The company experienced a record-setting year due to tight supply conditions and surging demand for memory in AI applications. This led to increased average selling prices, contributing to higher revenue, gross margins, and EPS. The memory market includes NAND (storage memory) and DRAM (working memory), with a specialized form of DRAM called HBM being crucial for modern AI workloads.
AI Driving Memory Requirements
AI accelerators rely on HBM to store and feed data, requiring higher memory bandwidth and greater capacity for efficient and scalable AI deployment. The growing memory needs of AI systems have caused DRAM and NAND industry demand to significantly exceed supply. Micron expects this imbalance to persist, with conditions becoming even tighter in calendar years 2027 and 2028, as supply cannot keep pace with demand.
Future Outlook and Supply Constraints
Approximately 75% of Micron's expected output for 2027 is already allocated, and customers are discussing allocations for 2028. CEO Sanjay Mehrotra noted that the structural gap between DRAM supply and demand growth rates is causing ongoing supply tightness, necessitating cleanroom additions to augment node-transition supply growth and narrow the gap.
Updates
- Micron's Q4 2026 earnings were released on Wednesday.
- Micron's Mobile and Client business unit had an 88% operating margin.
- Micron's Mobile and Client business shipped less memory last quarter.
- Core Data Center operating margin surged from 25% to 85%.
- Automotive and Embedded operating margin climbed from 20% to 79%.
- Mobile and Client unit operating margin was 29% in fiscal Q4 2025.
- Cloud Memory operating margin moved from 48% to 76%.
- Micron CEO Sanjay Mehrotra expects demand to exceed supply through 2028.
- Micron no longer sells consumer RAM.
- Micron plans to open new clean rooms for memory manufacturing in 2028.
- Micron's Q4 2026 revenue was $54.2 billion.
- Micron's Q4 2026 earnings call was on September 30.
- Micron reported a record gross margin of 86.25%.
- Micron has sold most of its capacity for next year.
- NAND and DRAM shipments are expected to grow in the low-to-mid 20s percentage range for the next two years.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Micron achieved record revenue of $54.23 billion and an 87% gross margin in fiscal Q4 2026. The Mobile and Client business unit recorded an 88% operating margin, despite shipping fewer memory bits, indicating profit growth driven by higher pricing rather than increased shipments in the consumer market.
Micron and Samsung executives anticipate the memory shortage will continue for several years, with Micron CEO Sanjay Mehrotra stating demand will exceed supply through 2028. This shortage is driven by high demand for high-bandwidth memory (HBM) and DRAM for AI and servers, impacting supply for consumer devices.
Micron announced during its FY 2026 earnings call that RAM and storage chip shortages will intensify through 2027 and 2028, despite projected increases in NAND and DRAM shipments. The company also reported record financial guidance, including an 86.25% gross margin, driven by high demand from AI data centers.
Micron CEO Sanjay Mehrotra stated that memory and storage supply will be significantly tighter in fiscal years 2027 and 2028 compared to 2026, driven by strengthening industry demand and AI integration. This projection indicates ongoing supply constraints for critical components used across the tech industry, potentially affecting pricing and availability for manufacturers and consumers.
Micron reported fiscal Q4 2026 revenue of $54.23 billion and adjusted EPS of $33.42, exceeding analyst expectations. The company anticipates continued strong demand for memory products, particularly High-Bandwidth Memory (HBM) for AI applications, leading to tight supply through 2027 and 2028.