Micron posts record $133bn revenue in FY2026 on AI memory surge
Micron Technology reported record full-year revenue of $133.19 billion for fiscal 2026, a 256% increase on the $37.38 billion it posted in fiscal 2025. GAAP net income for the year reached $84.97 billion, against $8.54 billion a year earlier, while adjusted free cash flow came in at $62.31 billion. The Idaho-based semiconductor group ended the year with $73.48 billion in cash, marketable investments and restricted cash.
The fourth quarter alone contributed $54.23 billion in revenue, up from $41.46 billion the prior quarter and compared with just $11.32 billion in the same period last year. GAAP gross margin for the quarter hit 86.8%, a level that illustrates the pricing power Micron has commanded as hyperscalers and AI infrastructure builders compete for memory supply. Operating cash flow for Q4 reached $43.97 billion.
AI demand drives product momentum
The company pointed to several product milestones that reflect the breadth of the AI-memory opportunity. Micron said it began sampling what it described as the industry's first 512GB ultra-dense DDR5 RDIMM modules capable of speeds up to 9,200 MT/s, and has completed multiple customer qualifications of its 1-gamma-based 8,800 MT/s high-speed server RDIMMs. Its server LPDDR SOCAMM portfolio more than doubled revenue sequentially in Q4. The company also said it has secured design wins with every tier-one OEM for AI workstation products, and that its PCIe Gen 5 and Gen 6 SSD products are shipping to customers for KV-cache applications, an increasingly important workload in large language model inference.
Chief executive Sanjay Mehrotra said the company expects an "even stronger" fiscal 2027. Micron's guidance for the first quarter of fiscal 2027 calls for revenue of $61.5 billion, plus or minus $1.5 billion, with a non-GAAP gross margin of approximately 86.25% and non-GAAP diluted earnings per share of $38.15.
Market context and competitive landscape
The scale of Micron's swing from $37 billion to $133 billion in a single year reflects a structural shift in the memory market rather than a cyclical bounce. The AI infrastructure build-out has created a qualitatively different demand profile: hyperscalers are signing longer-horizon supply commitments, evidenced by the $12.75 billion in customer contract liability deposits Micron received in fiscal 2026. The company's balance sheet now carries $12.9 billion in noncurrent customer contract liabilities, a figure that did not exist at meaningful scale a year ago.
Micron competes directly with Samsung and SK Hynix in DRAM and NAND, both of which have similarly benefited from the AI memory cycle. SK Hynix has been the dominant supplier of high-bandwidth memory (HBM) to Nvidia, though Micron has been qualifying its own HBM3E products and has publicly targeted a larger share of that market. The gross margin trajectory across Micron's Core Data Centre Business Unit, which posted 90% gross margin and 85% operating margin in Q4, suggests the company has moved well beyond commodity DRAM territory in its data-centre product mix.
Capital expenditure for the full year was $27.37 billion net, up from $13.80 billion in fiscal 2025, reflecting the company's commitment to expanding manufacturing capacity. Micron has also received $3.32 billion in government incentive proceeds during the year, consistent with its participation in the US CHIPS Act programme, which provides federal subsidies for domestic semiconductor fabrication. Further capex acceleration is expected as the company scales its 1-gamma process node and prepares next-generation HBM capacity.
The board declared a quarterly dividend of $0.15 per share, payable on 29 October 2026 to shareholders of record on 14 October 2026.