Business & Markets
Micron posts a record $54 billion quarter as AI memory demand accelerates
Core data-center revenue topped $18 billion, more than 11 times its year-earlier level. Micron's next-quarter outlook points higher still, while the company cautions that supply remains tight and margins may ease from exceptional levels.
Executive summary
- Record quarter: Micron reported fiscal fourth-quarter revenue of $54.23 billion, up from $11.32 billion a year earlier, and full-year revenue of $133.19 billion. The quarter ended September 3 and contained 14 weeks; the year-earlier fiscal quarter contained 13, so the reported comparison spans different quarter lengths.[1][2][3]
- Data-center surge: The company's Core Data Center unit generated $18.00 billion in revenue, compared with $1.58 billion a year earlier. Micron and Reuters attributed the strength to AI-related demand for memory, including high-bandwidth memory used alongside advanced computing systems.[1][4]
- Outlook and limits: Micron forecast first-quarter fiscal 2027 revenue of $60 billion to $63 billion. It also projected a lower non-GAAP gross margin than the 87% reported for the quarter, and said AI-driven demand is running ahead of the industry's ability to increase supply. The guidance is management's forecast, not a guaranteed result.[1][4]
Micron Technology reported $54.23 billion in revenue for its fiscal fourth quarter, a record that was nearly five times the $11.32 billion it reported for the same period a year earlier. Net income under generally accepted accounting principles was $37.70 billion. The company said revenue for the full fiscal year reached $133.19 billion, up from $37.38 billion in fiscal 2025.[1][2]
The year-over-year comparison includes a calendar difference: Micron's fiscal 2026 fourth quarter had 14 weeks, while the year-earlier quarter had 13. The company described its fiscal calendar in its June filing, which said fiscal 2026 had 53 weeks and fiscal 2025 had 52; its 2025 annual filing confirms all 52 weeks in that year. The extra week does not erase the scale of the increase, but it is relevant context when comparing reported totals across the two periods.[3][5]
Micron's Core Data Center business unit booked $18.00 billion in quarterly revenue, versus $1.58 billion in the year-earlier period. Reuters reported that demand tied to AI infrastructure has made high-bandwidth memory a key growth driver for Micron and other suppliers. The company's release also showed $16.28 billion in its separate Cloud Memory unit; those segment labels and reported revenue are Micron's, while attributing the overall surge to AI demand is the company's explanation, echoed in Reuters' coverage.[1][4]
For the fiscal first quarter, Micron forecast revenue of $60 billion to $63 billion, with a midpoint of $61.5 billion. Reuters reported that the midpoint was above the analyst consensus it cited from LSEG. The company also projected non-GAAP earnings of $38.15 per diluted share, plus or minus $1.00; these adjusted figures exclude items that Micron lists in its reconciliation and should not be confused with GAAP results.[1][4]
The outlook points to continued demand, but it also includes signs that the current economics may not improve in a straight line. Micron's non-GAAP gross margin was 87% in the fourth quarter; its first-quarter outlook is about 86.25%. The company said demand for AI data-center memory is growing faster than the industry's capacity to add supply. That is management's assessment, not independent proof that shortages or current pricing will persist.[1][4]
The results offer a powerful indicator of how much revenue is flowing into memory used by data centers as AI infrastructure expands. They do not establish how durable that spending will be, how quickly competitors will add capacity, or whether customers can turn their own AI investments into returns. Micron's next results and supply commentary will test whether today's exceptional growth can continue.[1][4]