Micron Technology, Inc.

What they do

Micron designs and manufactures high-performance DRAM, NAND, and NOR memory and storage products sold as components, modules, SSDs, managed NAND, multi-chip packages, and wafers. Its four reportable business units are Cloud Memory, Core Data Center, Mobile and Client, and Automotive and Embedded, with high-bandwidth memory (HBM) a key product for data center AI demand.

Revenue drivers

• Cloud Memory Business Unit (CMBU) — Focused on memory for large hyperscale cloud customers and HBM for all data center customers; FQ3-26 revenue was $13.77 billion, the largest segment.
• Core Data Center Business Unit (CDBU) — Sells memory to mid-tier cloud, enterprise, and OEM data center customers and storage to all data center customers; FQ3-26 revenue was $11.52 billion.
• Mobile and Client Business Unit (MCBU) — Supplies memory and storage for the mobile and client segments; FQ3-26 revenue was $11.52 billion with an 87% gross margin.
• Automotive and Embedded Business Unit (AEBU) — Provides memory and storage for automotive, industrial, and consumer segments; FQ3-26 revenue was $4.63 billion.

Recent performance

For fiscal Q3 2026, Micron reported record revenue of $41.46 billion, up from $23.86 billion in the prior quarter and $9.30 billion in the year-ago quarter. GAAP net income was $28.24 billion, or $24.67 per diluted share, and operating cash flow was $25.39 billion. GAAP gross margin was 84.6% of revenue. In fiscal 2025, full-year revenue was $37.38 billion with net income of $8.54 billion and gross margin of 40%.

Strategy

Management says Micron is investing at record levels in technology, products, and supply to meet customer demand, and has entered multi-year Strategic Customer Agreements intended to make performance more durable and predictable. The company is shifting DRAM supply toward data center and hyperscale cloud markets, emphasizing HBM, and is shipping HBM4 built on 1-beta DRAM in high volume. It is also developing HBM4E on 1-gamma DRAM with volume production expected in calendar 2027. For NAND, management says it is prudently aligning supply growth and technology cadence with demand projections.

Risks

• Intense competition — Semiconductor memory and storage markets are intensely competitive, requiring continuous new product development, technology integration, and manufacturing cost reductions.
• China cybersecurity restriction — China's CAC determined Micron products present a cybersecurity risk, and critical information infrastructure operators in China may not purchase Micron products, impacting domestic data center and networking markets.
• Foreign currency exposure — Although most sales are in U.S. dollars, significant costs and assets are in currencies such as Canadian dollar, Chinese yuan, euro, yen, and Singapore dollar; a hypothetical 10% adverse exchange rate move would have caused roughly $572 million in losses as of August 28, 2025.
• Technology and manufacturing execution — Returns depend on R&D, efficient use of manufacturing infrastructure, successful development of advanced process technologies, market acceptance, and efficient capital spending.

Outlook

For fiscal Q4 2026, Micron guides revenue of $50.0 billion plus or minus $1.0 billion, gross margin of approximately 86%, and diluted EPS of $30.73 plus or minus $1.00 on a GAAP basis. On a non-GAAP basis, diluted EPS guidance is $31.00 plus or minus $1.00. Management says the record Q3 results and stronger Q4 outlook reflect the strategic value of memory in the AI era.