Micron income hit a report $54.23 billion within the fiscal fourth quarter of 2026, up 379% from $11.32 billion a yr earlier. The leap got here on the again of Micron AI reminiscence demand, which remains to be manner forward of provide proper now, and it additionally pushed Micron earnings to $33.42 per share, above the $31.61 that Wall Road had anticipated. Web earnings climbed to $37.7 billion from simply $3.2 billion. That type of Micron income development lifted full-year gross sales to $133.19 billion, however Micron inventory barely moved in after-hours buying and selling.
Micron Income Development: Earnings, AI Demand And Inventory Outlook
Chairman and CEO Sanjay Mehrotra put the leap in Micron income all the way down to AI. He stated:
“Micron delivered report fiscal 2026 outcomes, and we count on an excellent stronger fiscal 2027. AI is turning into Tremendous Intelligence (SI), and reminiscence enhances this intelligence and the competitiveness of our prospects’ platforms. We’re growing our investments in expertise, merchandise and manufacturing to assist drive SI ahead with our prospects, and our Strategic Buyer Agreements present added confidence within the sturdiness of Micron’s monetary efficiency.”
Micron Earnings High Estimates As DRAM Leads
Gross margin got here in at a report 87%, and DRAM chips did a lot of the heavy lifting, bringing in near three-quarters of Micron income.
Chief Monetary Officer Mark Murphy had this to say:
“Consolidated fiscal This fall income was $54.2 billion, up 31% sequentially and up 379% yr over yr. Fiscal This fall income was our sixth consecutive quarterly income report. Fiscal This fall DRAM income was a report $39.8 billion, up 343% yr over yr and represented 73% of complete income. Sequentially, DRAM income elevated 27%.”
Micron is asking for $38.15 per share and $61.5 billion in gross sales on the midpoint for the primary quarter of fiscal 2027, in opposition to analyst requires $35.40 and $57 billion. If that holds, gross sales would climb by roughly one other $7.3 billion in only one quarter.
Micron AI Reminiscence Demand Retains Provide Tight
Micron is the one US maker of high-bandwidth reminiscence, or HBM, which AI chips must run massive fashions. Mehrotra stated on the decision that prospects have already locked in additional than 75% of the corporate’s 2027 output. Larger costs are additionally feeding Micron income, with DRAM costs up by a high-teens proportion final quarter. With Micron AI reminiscence demand this robust, the corporate says it will possibly’t but see when provide and demand will stability out.
Mehrotra acknowledged:
“As robust as fiscal 2026 was, we count on fiscal 2027 to be even higher. Business demand has strengthened since our final earnings name, and we count on reminiscence and storage supply-demand circumstances to be a lot tighter in fiscal 2027 and 2028 than they have been in 2026.”
Micron Inventory Outlook After The Report Quarter
Shares traded flat after hours at about $1,065, as traders had already priced in an enormous beat after Micron inventory gained greater than 500% over the previous yr. Micron earnings have now topped estimates for eight quarters in a row, and the market cap sits above $1.2 trillion on the time of writing.
Micron expects fiscal 2027 to be one other report yr, with Micron income rising in each quarter. Share buybacks also needs to decide up from December 9.
With 26 long-term buyer offers protecting over 35% of anticipated gross sales by way of 2030, the subsequent stretch of Micron income development comes all the way down to how rapidly its new fabs in Idaho and New York can begin transport.
