Micron Technology has reported a record fiscal Q3 2026 revenue of $41.5 billion, a figure driven almost entirely by overwhelming demand for high-bandwidth memory, the specialized chip architecture powering modern AI systems. Adjusted earnings per share were $25.11, with shares surging roughly 15% in after-hours trading.
The company has sold its entire 2026 HBM production under long-term contracts, locking in revenue before production begins. This strategic move aims to stabilize its historically boom-bust business model. Current gross margins are running around 81%, well above the historical average, with the floor now higher due to these contract structures.
For the next quarter, Micron is guiding revenue between $49 billion and $51 billion, with gross margins projected between 81% and 86%. Bank of America has raised its price target for Micron shares to $500, citing near-term margin stabilization.
Micron forecasts capital expenditure above $25 billion for fiscal 2026, rising toward $27 billion to address AI-driven demand. CEO Sanjay Mehrotra frames this investment cycle as a commitment to capturing a generational demand shift. Samsung and SK Hynix are primary rivals in the HBM market, also investing heavily in capacity expansions.