Micron Technology reported record results. Revenue was US$54.23 billion and the GAAP gross margin was 86.8%, with capacity investment and higher prices driving earnings growth. The outlook for the following quarter points to revenue of US$60–63 billion and a high gross margin, although the impact of inventory and expenses and the terms of long-term contracts warrant attention.
Micron reported revenue of US$54.23 billion and net income of US$37.70 billion for the fourth quarter of fiscal 2026, approximately 4.8 times the year-earlier level. The GAAP gross margin reached 86.8%, with higher shipments and prices supporting earnings growth. The reporting period comprised 14 weeks, so the number of business days also affects comparisons with the previous quarter and the year-earlier quarter.
Data center revenue accounted for approximately 63% of the company total, with cloud memory (CMBU) and core data center (CDBU) making up most of it. Increased production of advanced memory, including HBM, drove revenue higher, while the company explained that segment-level profit contributions vary with product mix because HBM gross margins are generally lower than those for conventional DRAM.
The number of long-term contracts (SCAs) was expanded to 26, covering more than 35% of revenue through 2030. Many contracts set price floors and ceilings, leaving room for negotiation based on market conditions rather than relying solely on fixed prices. The earnings materials noted that the recognition of costs through inventory affects gross margins.
Total investment planned for fiscal 2027 is substantial. Plans were presented for new plants and expansions in the United States, Taiwan and Japan, with the timing of initial production expected to be staggered. The relationship between capital expenditure after subsidies and free cash flow, as well as the treatment of customer deposits, were cited as challenges in recovering funds.