Micron Technology, a US multinational that produces various types of semiconductor devices, predicts strong demand for memory chips thanks to growth in spending in the artificial intelligence sector, publishing results well above expectations which have sent the stock soaring in after-market trading.
The results of the quarter
The company ended the third quarter of fiscal 2026 (ended May 28, 2026) with revenue of $41.46 billion, compared to $23.86 billion in the previous quarter and $9.30 billion in the same period last year. The figure far exceeded analysts’ estimates of $35.85 billion (according to LSEG data).
Net income was $28.24 billion, or $24.67 per share, while adjusted net income was $28.86 billion, or $25.11 per share (versus estimates of $20.78 per share).
Operating cash flow was $25.39 billion, compared to $11.90 billion in the previous quarter and $4.61 billion in the same period last year. In the third quarter of 2026, capital expenditures, net, were $7.1 billion and adjusted free cash flow was $18.3 billion. Micron ended the quarter with cash, marketable investments and restricted cash of $30.2 billion.
The CEO’s comment
“Micron’s strong financial results in the third quarter of its fiscal year and even more positive outlook for the fourth quarter reflect the strategic value of memory in the age of artificial intelligence”
said CEO Sanjay Mehrotra.
“Micron is investing at record levels in technology, products and supply chain to meet the rapidly growing demand of our customers. We believe our multi-year strategic customer agreements will significantly strengthen the strength and predictability of Micron’s financial performance.”
Dividend and guidance
The board has resolved to distribute a quarterly dividend of $0.15 per share, payable in cash on July 21, 2026 to shareholders of record at the close of business on July 6, 2026.
Micron Technology expects fourth-quarter adjusted earnings per share of $31, a change of plus or minus $1, from estimates of $25.84 per share, and revenue of $50 billion, a change of plus or minus $1 billion, from estimates of $43.58 billion.
The conference with analysts
During the call, management said its customers have pledged $22 billion to secure supplies of memory chips. “We expect shortage conditions to persist beyond 2027 due to AI-driven demand across all segments, coupled with structural supply constraints,” the CEO said, adding that the company has no idea when memory supply will keep pace with growing demand. Micron Technology also outlines a business model change aimed at making demand less cyclical. The $22 billion in commitments will come from 16 strategic customer agreements Micron signs, spanning the data center, consumer products and automotive markets, with take-or-pay commitments, cash deposits and minimum pricing set to secure supply and protect margins.
