Micron Technology reported blockbuster Q3 earnings on revenue of $41.46 billion and adjusted EPS of $25.11, easily beating Wall Street estimates. Fueled by surging AI demand for High-Bandwidth Memory (HBM), the memory giant also announced a bullish Q4 revenue outlook of up to $51 billion and declared a $0.15 quarterly dividend.
Explosive Q3 Financial Results
- Total Revenue: Surged 346% year-over-year to a record $41.46 billion, comfortably beating analyst estimates of $35.85 billion.
- Adjusted EPS: Hit $25.11, significantly surpassing the Wall Street consensus of $20.39.
- Gross Margins: Expanded dramatically to an all-time high of 84.9%, exceeding the projected 81.8%.
- Segment Records: Data center revenue led the charge, multiplying to a historic $11.52 billion (a 652% increase YoY). Cloud memory and traditional mobile/automotive divisions also hit historic peaks.
Robust Q4 Outlook
- Revenue Guidance: Projected between $49 billion and $51 billion, obliterating average analyst expectations of $43.2 billion.
- Earnings Guidance: Adjusted EPS is projected between $30 and $32 for the upcoming quarter.
- Margin Expectations: Adjusted gross margins are forecast to climb even higher to approximately 86%.
Dividend, Cash Flow, and Strategic Highlights
- Dividend Declaration: The board declared a quarterly cash dividend of $0.15 per share, payable on July 21, 2026, to shareholders of record as of July 6.
- Record Cash Generation: Micron generated a stunning $25.39 billion in operating cash flow and $18.3 billion in adjusted free cash flow.
- Strategic Customer Agreements (SCAs): The company cemented 16 strategic agreements that cover roughly 20% of its DRAM volume and 33% of its NAND volume, guaranteeing significant cash deposits and long-term demand visibility.
Market Impact
The blowout print and forward-looking guidance acted as a stabilizing force, alleviating concerns about an AI sector bubble. The blowout performance and subsequent positive Yahoo Finance coverage pushed shares sharply higher in extended trading, dragging the broader semiconductor sector upward.
