Micron Records Blowout Earnings, Stock Surges as AI Demand Soars

Micron delivered a record-breaking quarter with revenue of $41.5B, 84.9% gross margin, and EPS of $25.11, exceeding expectations. The stock surged as AI demand continues to outrun memory supply, giving producers strong pricing power.

MU delivered its most impressive quarter in company history on June 25, reporting Q3 FY2026 revenue of $41.5 billion — roughly $6.5 billion above the $35B consensus estimate — with an 84.9% gross margin that eclipsed even NVDA's . EPS of $25.11 beat the $20 analyst estimate by more than 25%, marking the fourth consecutive quarter of upside surprises for the memory giant. Shares surged 18% in premarket trading, lifting related names: Sandisk jumped 15% and Western Digital climbed 13.5% .

The results reflect a structural shift in the memory industry driven by insatiable AI infrastructure demand. Micron secured $100 billion in long-term take-or-pay contracts through 2030 and announced a multi-layer partnership with Anthropic as its primary supplier for HBM, DRAM, and SSDs covering Claude AI training and inference workloads . HBM4 production is already sold out through end of 2026, and volume shipments to NVDA's Vera Rubin platform began in Q1 2026.

Broader market reaction was swift and decisive: the Dow rose and the S&P 500 steadied as Micron's results countered the prior session's chip-sector selloff triggered by South Korea KOSPI weakness and Broadcom guidance concerns. Analysts view the Q3 print as validation of Micron's competitive position at the center of the AI memory supply chain, though the stock's premium multiple — now trading at 15x forward EV/EBITDA — leaves little margin for any demand deceleration heading into calendar 2027.