Micron Technology reported fiscal Q4 2026 revenue of $54.23 billion, up 379% from a year earlier, as AI data centers pulled in memory chips. The stock still trades at roughly 11 to 14 times trailing earnings, a sign the market doubts the profits will last.
Micron's fiscal Q4 2026 revenue hit $54.23 billion, a 379% jump from the same period a year earlier. Yet the stock trades at roughly 11 to 14 times trailing earnings.
Margins and demand from AI data centers
The quarter ended around September 3, 2026. For the full fiscal year, Micron brought in $133.19 billion in revenue, up 256% year over year, and DRAM revenue crossed $100 billion for the first time.
Profitability kept pace. Gross margin landed at about 87% in the fourth quarter, and operating margins topped 80%. GAAP net income came in at $37.70 billion, while non-GAAP earnings per share reached $33.42.
Most of the growth came from Micron's data center business units, which posted margins between 83% and 90%. Micron says high-bandwidth memory (HBM) shipments are expanding across a growing roster of customers, and the majority of its calendar 2027 HBM supply is already contracted at higher prices than the year before.
Customer agreements lock in 2027 output
CEO Sanjay Mehrotra pointed to 26 Strategic Customer Agreements that Micron has signed. More than 75% of Micron's fiscal 2027 output is already committed under them, and the contracts include price protections.
Looking ahead, Micron guided first-quarter fiscal 2027 revenue to a range of $60 billion to $63 billion. That would top the record quarter it just reported.
Why the market stays skeptical
Investors have seen memory upcycles before, and the multiple suggests they doubt these profits will last. The familiar worry is that strong pricing encourages heavy investment, new capacity eventually comes online, and the resulting oversupply can crush prices and margins.
The risks remain. Memory is a capital-intensive industry exposed to cyclical downturns, and a slowdown in AI infrastructure spending would hit the data center units that now generate the bulk of Micron's growth.
Source: Crypto Briefing
Trading involves risk.
Risk Disclaimer
