micron Technology filed the third fiscal quarter 2026 with results significantly higher than Wall Street expectations, confirming that the booming demand for AI memory continues to support industry prices and profitability. The company posted revenue of $41,5 billion, up 346% from the same period last year and well above analyst consensus of $35,9 billion. Adjusted earnings per share were $25,11., against expectations for 20,8 dollars and compared to 1,91 dollars in the same quarter of the previous year.
Margins at all-time highs: costs are growing much faster than revenues
Even more impressive is the trend in profitability. Adjusted gross margin reached 84,9%, a new all-time record. for the group, a sharp increase compared to 74,9% in the previous quarter and 39% a year ago. This trend confirms that the price growth of DRAM and HBM memory is being passed almost entirely through to operating profits, thanks to a cost structure that is growing much more slowly than revenues.
Next quarter guidance well above consensus
The real surprise, however, came from the indications for the fourth fiscal quarter. Micron expects revenues of around $50 billion; adjusted earnings per share of approximately $31; adjusted gross margin of approximately 86%. The market had previously expected revenue of $43,4–43,6 billion and EPS of approximately $25,6–25,7 billion. The guidance therefore implies further improvement in both growth and profitability, signaling that demand for AI infrastructure memory continues to exceed available supply.
HBM and AI remain the engine of growth
Investors have focused mainly on the high-bandwidth memory business (HBM), used in artificial intelligence systems. Even before the results were released, the company indicated that all HBM production capacity for 2026 had been allocated to customers and that HBM4 shipments for the NVIDIA Vera Rubin platform were growing faster than expected. Management also continues to highlight a structurally tight supply situation in the DRAM and HBM segments, which is supporting prices and favoring margin expansion.
The stock's reaction in the afterhours
Before the publication of the accounts the title Micron closed the regular session of the Nasdaq down 1,3%., after weeks of strong growth that had pushed the market capitalization above the $1 trillion mark. Following the release of the results, however, the market reacted enthusiastically. In after-hours trading, the stock he ended up earning about 10%, driven by the double exceeding of expectations both for the quarter's results and, above all, for the fourth quarter's guidance.
Analysts' verdict: Micron is now considered "priced for perfection"
The consensus remains largely positive. In the hours preceding the publication of the results, many analysts had underlined that the stock was now "priced for perfection", with extremely high expectations from institutional investorsMicron's numbers, however, appear to have surpassed even the most optimistic buy-side forecasts. Specifically, the fourth-quarter EPS guidance of $31 is even above the high end of expectations circulating among professional investors.
For the market the message is clear: the AI-related memory cycle isn't slowing down and tight supply continues to give Micron an extraordinary ability to generate growth and margins.
