Micron posts $54.23 billion quarter as AI memory demand lifts margins to 87%
In brief
- Micron reported fiscal Q4 2026 revenue of $54.23 billion, up 379% year over year.
- Gross margin was about 87%; GAAP net income reached $37.70 billion for the quarter.
- More than 75% of fiscal 2027 output is committed under customer agreements, Micron says.
- First-quarter fiscal 2027 revenue guidance is $60 billion to $63 billion.
- Micron stock trades at roughly 11 to 14 times trailing earnings, per Crypto Briefing.
Record margins on data center memory
The full fiscal year looked just as lopsided. Micron brought in $133.19 billion in revenue, up 256% year over year, and its DRAM revenue crossed $100 billion for the first time, per Crypto Briefing.
Profitability is the bigger story. Operating margins topped 80% in the fourth quarter, GAAP net income came in at $37.70 billion and non-GAAP earnings per share reached $33.42, according to the company's reported results.
Most of that growth came from Micron's data center business units, which posted margins between 83% and 90%. The products driving demand were high-bandwidth memory (HBM), DRAM, NAND flash and data center SSDs. Micron said HBM shipments were expanding across a growing number of customers.
Contracts reach into 2027
CEO Sanjay Mehrotra pointed to 26 Strategic Customer Agreements, or SCAs, that Micron has signed. According to the company, those deals give it revenue visibility and lock in commitments for a significant share of output through 2027 and beyond. They also include price protections and carry substantial remaining performance obligations.
More than 75% of Micron's fiscal 2027 output is already committed under those agreements, according to Micron.
Guidance points the same way. Micron guided first-quarter fiscal 2027 revenue to a range of $60 billion to $63 billion, and management expected sequential growth to continue throughout the year. Supply tightness is expected to persist beyond calendar 2027, Crypto Briefing reported.
Valuation reflects cyclical worries
Even so, Crypto Briefing's analysis puts the stock at roughly 11 to 14 times trailing earnings. It's a familiar memory-cycle worry (strong pricing encourages heavy investment, new capacity eventually comes online, and the resulting oversupply can push down prices and margins).
The outlet also noted that memory remains a capital-intensive industry exposed to cyclical downturns.
Frequently asked questions
What are Micron's Strategic Customer Agreements?
CEO Sanjay Mehrotra pointed to 26 Strategic Customer Agreements (SCAs) that Micron has signed. According to Micron, they give the company revenue visibility and lock in commitments for a significant share of output through 2027 and beyond, with price protections included. More than 75% of fiscal 2027 output is already committed under them.
Why does Micron trade at 11 to 14 times trailing earnings despite record profits?
Crypto Briefing's analysis ties the valuation to the memory cycle. Strong pricing encourages heavy investment, new capacity eventually comes online, and the resulting oversupply can push down prices and margins. The outlet also noted that memory remains a capital-intensive industry exposed to cyclical downturns.
