Micron reports quarterly revenue more than quadruple as AI-driven demand surges
Micron's fiscal third-quarter revenue jumped to $41.46 billion, beating estimates, while the company forecast about $50 billion for the current quarter and announced long-term supply agreements worth $22 billion.
Micron said its revenue more than quadrupled to $41.46 billion in the fiscal third quarter, far exceeding the $35.84 billion analysts had expected. Adjusted earnings per share came in at $25.11, also above the $20.78 consensus. The company projected current-quarter revenue of roughly $50 billion, compared with the $43.58 billion forecast by analysts.
The growth was driven by heightened demand for memory components used in artificial-intelligence applications, data centers and consumer devices. Micron's gross margin rose to 84.9% from 74.9% in the prior period, surpassing analyst estimates. Net income for the quarter was $28.24 billion, or $24.46 per share, up sharply from $1.89 billion a year earlier.
"Our customers are recognizing that supply shortages in memory and storage will take considerable time to improve, even as we expect industry supply to improve gradually in 2028," CEO Sanjay Mehrotra told analysts.
Micron announced 16 long-term agreements with data-center operators and automakers, committing roughly $22 billion in sales over three to five years. The company expects more than half of its revenue to eventually come from these strategic contracts.
Revenue across all four business units increased, with the data-center segment posting the strongest rise, climbing more than sevenfold to $11.5 billion. Cloud memory sales grew over 300% to $13.77 billion, while the mobile and client unit saw revenue rise more than 250% to $11.52 billion. Automotive and embedded memory sales more than quadrupled to $4.63 billion. Micron also reported over $5 billion in data-center solid-state-drive revenue.
The board approved a cash dividend of $0.15 per share to be paid in July.
