Micron Guides Q4 Revenue to $50 Billion on AI Memory Demand

A single-quarter revenue target of $50 billion at roughly 86 percent gross margins marks the strongest outlook in Micron's history, powered by AI memory demand that has reshaped the company's earnings power. Fiscal Q3 revenue reached $41.46 billion, up 346 percent year over year, with non-GAAP EPS of $25.11 beating consensus by 23.8 percent.

HBM and DRAM supply tightness in 2026 stands at 4.9 percent, the highest in 15 years, according to Goldman Sachs. Micron's HBM capacity for 2026 is sold out under multi-year agreements at fixed prices, and HBM4 is in high-volume production at the lead customer with qualification samples at secondary customers.

Fiscal Q3 GAAP gross margin reached 84.6 percent versus 37.7 percent a year earlier. Cloud memory revenue came in at $13.77 billion and core data center at $11.52 billion. The company generated $25.39 billion in operating cash flow and holds a record $24.4 billion in net cash.

The stock trades 24 percent below its all-time high despite the record guidance, as investors weigh whether peak memory pricing can hold. Q4 guidance of $50 billion, plus or minus $1 billion, implies 21 percent sequential growth. Management has secured multiple multi-year strategic customer agreements extending revenue visibility into fiscal 2027.

The guidance signals management expects AI demand to accelerate through the current cycle. Investors will watch May's Core PCE inflation data in the week of June 30 for signals on tech valuations, and Micron's fiscal Q4 earnings report later this month for confirmation that contracted HBM revenue holds.

This article is for informational purposes only and does not constitute investment advice.