Micron reported $54.23 billion in fiscal fourth-quarter revenue, up 379% year-over-year, as persistent memory undersupply pushed the company's gross margin to 86.8% and quarterly GAAP profits to $37.7 billion.

The result, a 1,078% Y/Y profit jump, exceeded the Boise, Idaho-based DRAM and NAND supplier's own outlook of $50 billion ± $1.0 billion. For full fiscal 2026, Micron posted $133.2 billion in revenue — 3.5× the prior year's record — and $85 billion in GAAP profit, up 895% Y/Y.

How big did the profit surge get?

Operating cash flow reached $43.97 billion in the quarter, up from $25.4 billion the prior period. Free cash flow hit $33.2 billion. Diluted EPS came in at $32.87, against $2.83 a year earlier. Cash, marketable investments and restricted cash climbed to $73.5 billion from $30.2 billion last quarter.

Chairman and CEO Sanjay Mehrotra framed the year as a launchpad, not a peak: "Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027."

What's driving the HBM and DRAM engine?

Memory revenue — DRAM and HBM combined — reached $39.8 billion, up 331% Y/Y, contributing 73% of total quarterly sales. NAND revenue rose 526% to $14.1 billion. Annual DRAM revenue surpassed $100 billion for the first time.

By business unit:

• Cloud: $16.3 billion, up 258.5%
• Core Data Center: $18 billion, up 1,041% (now the largest segment, driven by GPU server memory demand)
• Mobile & Client: $13.1 billion, up 248.8%
• Automotive & Embedded: $6.8 billion, up 375.9%

How is Micron locking in future demand?

Micron has signed 26 Strategic Customer Agreements (SCAs) covering more than 35% of expected revenue through 2030. Customer financial commitments have grown to $32 billion, "the vast majority of which are cash deposits," Mehrotra said, with select SCAs now extending into 2031.

On the HBM front, Micron has completed agreements for the vast majority of its calendar 2027 HBM bit supply, with significant year-over-year price increases narrowing the gross-margin gap with conventional DRAM. The company is co-developing NVHBM — an industry-first custom HBM4E implementation — with Nvidia for next-generation GPUs and NVLink Fusion platforms.

Data center SSD revenue for the quarter reached nearly $10 billion — more than 10× the year-ago period and over two-thirds of total company NAND revenue — as KV caching offload and HDD displacement expand the SSD addressable market.

What does the supply outlook look like?

Micron's own fiscal Q1 2027 guidance calls for $61.5 billion ± $1.5 billion, a 48.4% Y/Y rise. The company expects memory and storage supply-demand conditions to be "much tighter in fiscal 2027 and 2028 than they were in 2026."

Mehrotra added a sobering note for buyers hoping for relief: "Even with additional industry DRAM cleanroom space plans, with robust demand trends including new upside requests from customers, we do not have line of sight to when supply and demand will return to balance."

Where is the new fab capacity headed?

Micron is accelerating construction spending. Its first Idaho fab, ID1, is on track to begin wafer output in mid-calendar 2027; ID2 follows in late calendar 2028. A new Japan facility has initial output expected in late calendar 2028, and a new Singapore NAND plant should start in the second half of calendar 2028.

Most of the fiscal 2027 capex increase targets construction, to bring additional clean-room space online in late calendar 2028 and beyond.

PC and mobile revenue is on track to grow this calendar year on premium-tier strength, even as overall unit volumes in both markets may decline by double digits. For automotive and embedded — increasingly branded "physical AI" — Micron said humanoid robots "are expected to have comparable memory and storage requirements to autonomous vehicles," with the segment positioned to "become a significant driver of memory and storage demand by the end of this decade."

Mehrotra closed the call with a message that doubles as a warning to customers: "These multi-year take-or-pay agreements sharpen our long-term supply planning and enhance the durability and predictability of our strong financial performance."

With SCAs locking in more than a third of revenue through 2030 and HBM 2027 bit supply already committed, the price-and-volume leverage that drove fiscal 2026's 86.8% gross margin looks set to deepen rather than ease through at least the next two fiscal years.