Micron (MU) Equity Research Report: Fiscal Q3 2026 Results

Each chart stacks the quarters reported in every dated MU report so far. A new quarter is added after each 10-Q or 10-K filing.

Micron Technology, Inc. (Nasdaq: MU) reported fiscal Q3 2026 revenue of $41.46 billion. The quarter ended May 28, 2026. [1]

Revenue rose 74% from the prior quarter and 346% from the same quarter a year earlier. [1]

Higher memory prices caused most of the growth from the prior quarter. DRAM average selling prices had a “low-60% range increase”, while DRAM bit shipments had a “low-single-digit percentage range increase”. [9]

Micron guided fiscal Q4 2026 revenue to $50.0 billion, plus or minus $1.0 billion. [10]

The main question is how long memory prices stay this high. New industry supply and the terms of new long-term contracts will answer it.

This report is not investment advice. It gives no rating and no price objective.

GAAP gross margin was 84.6% in fiscal Q3 2026. GAAP means U.S. Generally Accepted Accounting Principles. Gross margin is revenue minus cost of goods sold, as a percent of revenue. [2]

Non-GAAP gross margin was 84.9%. Non-GAAP measures remove items such as stock-based compensation. [2]

GAAP diluted EPS was $24.67, and non-GAAP diluted EPS was $25.11. Diluted EPS is net income divided by the diluted share count. [5]

Operating cash flow was $25.39 billion. Adjusted free cash flow was $18.30 billion. [6] [7]

Micron defines adjusted free cash flow as operating cash flow minus net capital expenditures: $25,388M - $7,084M = $18,304M. [7]

Cash, marketable investments, and restricted cash totaled $30.2 billion at quarter end. [11]

On March 18, 2026, Micron guided fiscal Q3 2026 revenue to $33.5 billion, plus or minus $750 million. Guidance is the company's own forecast for the next quarter. [12]

Actual revenue of $41.46 billion was 24% above the guide midpoint. Formula: ($41.46B reported - $33.5B guide midpoint) / $33.5B. [1] [12]

GAAP gross margin of 84.6% compared with a guide of about 81%. [2] [12]

GAAP operating expenses were $1,738M, against a guide of about $1.60 billion. [4] [12]

GAAP diluted EPS was $24.67, against a guide of $18.90, plus or minus $0.40. [5] [12]

For fiscal Q4 2026, Micron guided revenue of $50.0 billion, plus or minus $1.0 billion. It guided gross margin of about 86%. [10] [13]

The GAAP diluted EPS guide is $30.73, plus or minus $1.00. The non-GAAP guide is $31.00, plus or minus $1.00. [14]

The guide midpoint is 21% above fiscal Q3 2026 revenue. Formula: ($50.0B guide midpoint - $41.46B reported) / $41.46B. [1] [10]

Fiscal Q4 2026 has 14 weeks; fiscal Q3 2026 had 13. Per week, the guide implies a 12% increase. Formula: ($50.0B / 14 weeks) vs. ($41.46B / 13 weeks). [1] [10] [15]

Factory capacity cannot grow much in one quarter. So the guide depends mainly on prices staying high.

Memory revenue equals bits shipped multiplied by the average selling price per bit. A bit is the basic unit of memory capacity.

So revenue can grow in two ways: the company ships more bits, or it gets a higher price per bit.

In fiscal Q3 2026, DRAM revenue rose 67% from the prior quarter. Average selling prices had a “low-60% range increase”. Bit shipments had a “low-single-digit percentage range increase”. [9]

In fiscal Q3 2026, NAND revenue rose 99% from the prior quarter. Average selling prices had a “mid-80% range increase”. Bit shipments had a “mid-single-digit percentage range increase”. [16]

Micron reports these drivers as ranges or approximate values. This report shows them as filed. [9]

DRAM was 76% of revenue in fiscal Q3 2026. Formula: $31,328M DRAM revenue / $41,456M total revenue. [17]

Over one year, DRAM revenue rose 343% and NAND revenue rose 361%. Price was the main driver for both. [18] [19]

Volume also grew over the year: a “low-20% range increase” in DRAM bits and a “low-double-digit increase” in NAND bits. [18] [19]

Micron states that AI-driven demand for memory and storage is growing faster than industry supply. [20]

Price is the variable that changes fastest. So the durability of these earnings depends mainly on memory prices, which industry supply and demand set.

Cost of goods sold (COGS) is the direct cost to make the products sold. COGS rose 4.8% from the prior quarter. [21]

Revenue rose 73.7% in the same period. The company sold a similar number of bits at a much higher price. [21]

Incremental gross margin was 98%. It is the change in gross margin dollars divided by the change in revenue: ($35,056M - $17,755M) / ($41,456M - $23,860M). [21]

So almost every added dollar of revenue became gross profit. This is the pattern of price-led growth. [21]

COGS fell from 62% of revenue a year earlier to 15%. Revenue growth, not lower cost, caused most of this change. [21]

GAAP operating income was $33,318M, or 80% of revenue. A year earlier it was 23% of revenue. [22]

Operating leverage also works in reverse. Most costs stay when prices fall, so margins would fall fast.

Micron reports four business units. Cloud Memory was the largest in fiscal Q3 2026, with $13.769 billion of revenue. [23]

Gross margin ranged from 79% to 87% across the units. A year earlier, the range was 24% to 58%. [23] [24] [25] [26]

Core Data Center grew fastest over the year: from $1.530 billion to $11.524 billion, or 7.5 times. [24]

The four units add up to $41.448 billion of the $41.46 billion total. The rest comes from smaller operations that the company reports as All Other. [1] [23] [24] [25] [26]

In the third and fourth fiscal quarters of 2026, Micron signed multi-year strategic customer agreements. Some were signed after the quarter ended. [27]

They are take-or-pay agreements with binding volume commitments. In a take-or-pay agreement, the customer pays for the committed volume even if it takes less. [27]

Most agreements have a fixed price or a minimum and maximum price. A minority use market prices. [27]

In the largest agreements, the ceiling price for existing products is close to the market price in the second calendar quarter of 2026. [27] [28]

Micron expects gross margin from agreements with price bands to stay above its peak quarterly margin in any past cycle, even at floor prices. [28]

Remaining performance obligations (RPO) are contracted revenue not yet recognized. RPO was about $5 billion on May 28, 2026. [29]

Micron measures RPO with minimum volumes and minimum prices. It excludes agreements without price bands, so it is not a forecast of contract revenue. [29]

About one-third, roughly $1.7 billion, is expected to become revenue in the next 12 months. That equals 4% of fiscal Q3 2026 revenue: ($5B / 3) / $41,456M. [21] [29]

Micron expects $22 billion of cash deposits and related financial commitments from agreements concluded to date. About $18 billion is cash deposits. [30]

A minimum price limits the downside on covered volume. A maximum price limits the upside. Volume outside the agreements stays exposed to market prices. [27]

The filings do not state what share of total output the agreements cover. That share decides how much the agreements reduce cycle risk. [27]

Capital expenditure (capex) is cash spent on plant and equipment. In the first nine months of fiscal 2026, capex rose 92%: $10,199M to $19,602M. [31]

Capex was 2.9x depreciation and amortization over the same period. Formula: $19,602M capex / $6,862M depreciation and amortization. [31] [32]

Capex used 43% of operating cash flow. Formula: $19,602M capex / $45,702M operating cash flow. [31]

In fiscal Q3 2026 alone, net capex was $7,084M and adjusted free cash flow was $18,304M. [7]

New memory capacity takes years to build. So spending now adds industry supply in later years.

In past memory cycles, high prices led producers to add capacity. When that capacity arrived together, prices fell. This report tests whether this cycle follows the same path.

Receivables are amounts that customers owe for products already delivered. [33]

In the first nine months of fiscal 2026, receivables rose by $19,953M. That used cash equal to 44% of operating cash flow. Formula: $19,953M receivables increase / $45,702M operating cash flow. [31] [33]

Both figures cover nine months, not one quarter. Compare them with nine-month revenue, not quarterly revenue. [33]

A receivables increase is normal when sales rise fast. If receivables keep growing faster than revenue, it can be an early sign of weaker demand. [33]

In fiscal Q3 2026, operating cash flow was $25,388M and GAAP net income was $28,243M. [4] [6]

Each value below comes from figures in the cited filings. The formula column lets a reader recompute it.

The next event is the fiscal Q4 2026 results. They test the revenue guide of $50.0 billion, plus or minus $1.0 billion, and the gross margin guide of about 86%. [10] [13]

Operating expenses are guided to $1.86 billion GAAP and $1.65 billion non-GAAP. Fast cost growth would reduce incremental margins. [34]

Further disclosure on the strategic customer agreements matters most. The key facts are covered volume, floor prices, and deposits received. [27] [29]

The board declared a quarterly dividend of $0.15 per share. Compare shareholder returns with capex needs. [35]

This report does not use the share price or valuation multiples. It sets out the earnings questions that drive value.

Multiplying fiscal Q3 2026 by four would overstate normal earnings in a cyclical industry. Normalized earnings, the average across a full price cycle, are a better base. [1] [2]

The scenarios below state what must be true in each case and which facts would show it.

The next report will score this view against these facts.

If bit shipments start to grow faster than prices, growth is volume-led. Incremental margins will then fall below this quarter's level. [9]

If COGS rises much faster than revenue, new capacity is adding cost faster than prices add revenue. [21]

If fiscal Q4 2026 revenue or gross margin lands below the guide, prices were weaker than the company expected. [10] [13]

If receivables keep growing faster than revenue, cash collection is falling behind sales. [33]

If disclosures show the agreements cover a large share of output at high floors, cycle risk is lower than this report assumes. [27]

Price risk is the main risk. Most of the revenue growth came from price, and prices can fall as fast as they rose. [9] [16]

Capacity risk follows from current capex. New supply from all producers can arrive in the same period. [31]

Contract risk cuts both ways. Maximum prices limit upside, and the share of output under contract is not disclosed. [27]

This report does not use the earnings call, prepared remarks, or slides. It uses the SEC copy of the earnings release and the Form 10-Q.

This report does not use share prices, analyst estimates, or news coverage.

Micron filed 20 reports with the SEC in the 12 months to July 26, 2026. Insider Forms 3, 4, 5, and 144 are not included. [36]

Outside holders filed 5 beneficial-ownership schedules (Schedule 13D or 13G) about Micron in the same 12 months. The holders file these, not the company. [37]

The OpenNash research agent built this report from public SEC filings. Data is as of July 26, 2026.

It read the SEC filing index, the earnings releases filed as Form 8-K Exhibit 99.1, and the latest Form 10-Q.

Each figure links to the filing text it came from. Each derived metric shows its formula.

Analysis sentences without a citation number are OpenNash analysis. They add no new facts.

This page was revised on October 26, 2026. The data date did not change.