U.S. — Micron Technology reported revenue from data centers exceeding $25 billion for its fiscal third quarter, reflecting an annualized run rate of over $100 billion. The company also registered an operating income of $33.7 billion and an operating margin of 81.2% for the quarter.

Data-center solid-state drive revenue surpassed $5 billion for the fiscal third quarter, more than doubling sequentially. Non-GAAP diluted earnings per share increased by 106% sequentially to $25.11. The company concluded the quarter with $30.2 billion in cash and investments, achieving a net cash balance of $24.4 billion after reducing debt by $4.4 billion during the same period.

Micron reported operating cash flow of $25.4 billion and free cash flow of $18.3 billion for the fiscal third quarter. DRAM prices increased by approximately 60% sequentially during the quarter, while NAND prices rose in the mid-80% range. These price increases contributed to a consolidated gross margin of 84.9% for the fiscal third quarter, an increase of 10 percentage points from the previous quarter.

The company signed 16 strategic customer contracts. Remaining performance obligations for agreements with specific pricing terms were approximately $100 billion, based on minimum committed volumes and pricing. Expected consumer deposits and related financial obligations amount to $22 billion, which includes about $18 billion in cash deposits.

Micron anticipates spending around $27 billion in capital expenditures in fiscal 2026. The company expects quarterly capital expenditures in fiscal 2027 to be higher than in the fiscal fourth quarter of 2026. Micron believes that AI has driven industry data center DRAM and NAND bit shipments in calendar 2026 to more than double the amount from two years prior. Micron expects server units to expand at a high-teens percentage rate in calendar 2026 and stated that DRAM and NAND supply-demand conditions should remain tight beyond calendar 2027. Micron stock was up more than 200% year to date as of July 7, 2026, with shares trading at approximately $1,015. The company had a market worth of about $1.16 trillion as of July 7, 2026.

Why It Matters

The reported financial results indicate Micron's performance in a market characterized by increasing demand for memory products. The rise in data center revenue and substantial operating margins reflect market conditions influenced by artificial intelligence technologies and memory pricing. Micron's capital expenditure projections for fiscal 2026 and 2027 suggest a continued investment in capacity to meet anticipated demand. The company's strategic customer contracts and remaining performance obligations also provide insight into its future revenue pipeline and market positioning within the semiconductor industry.