Micron posts a record quarter and warns memory will be even tighter in 2027

Micron's fiscal Q4 revenue reached $54.2 billion — more than the whole of the prior year — at an 86.8% gross margin. The company says 75% of its 2027 output is already allocated and that supply will stay far tighter than demand through 2028.

Key Takeaways

Micron's fiscal Q4 revenue reached $54.2 billion — more than the whole of the prior year — at an 86.8% gross margin.
The company says 75% of its 2027 output is already allocated and that supply will stay far tighter than demand through 2028.

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Micron closed its fiscal 2026 with a quarter that, on its own, beat the memory maker's entire previous year. Revenue for the three months to 3 September came in at $54.23 billion — up 31% on the prior quarter and roughly 379% higher than the $11.32 billion booked a year earlier, according to the company's results. Gross margin reached 86.8% and net income was $37.7 billion. Full-year revenue was $133.19 billion, against $37.38 billion a year earlier.

The numbers are the clearest financial statement yet of the AI-driven memory crunch. Chief executive Sanjay Mehrotra said DRAM prices rose by a "high teens" percentage during the quarter, while NAND flash — used in SSDs — climbed about 30%. Micron's consumer and client segment, which supplies memory for phones, notebooks and desktops, is now its most profitable line at a 90% gross margin.

More consequential is the outlook. Mehrotra said 75% of Micron's calendar-2027 production is already allocated to customers, with talks under way for 2028 capacity, and that supply-and-demand conditions for memory and storage will be "significantly tighter" in 2027 and 2028 than in 2026. He described a "structural gap between DRAM supply growth and demand", echoing the world's largest memory maker, Samsung. Additional fabs, he suggested, will not close the gap in 2028 either.

Micron guided to about $61.5 billion in revenue for the current quarter, plus or minus $1.5 billion. The stock barely moved on the release, suggesting investors had already priced in the boom.