Micron Technology (MU) reported fiscal Q3 2026 earnings on June 24, 2026, and the numbers were the largest in the company's history: revenue of $41.46 billion for the quarter ended May 28, 2026, compared with $23.86 billion in the prior quarter and $9.30 billion a year earlier [1]. Non-GAAP diluted earnings per share reached $25.11, gross margin was 84.9% on a non-GAAP basis, and management guided fiscal Q4 revenue to $50.0 billion, plus or minus $1.0 billion [1]. The stock closed at $1,213.56 on June 25, up 15.7% from $1,048.51 the day before, and settled at $1,132.33 on June 26 as of the most recent close [2]. This Micron fiscal Q3 2026 earnings recap covers what the company reported, how the market reacted, what the valuation looks like now, and what investors may want to watch next.
Micron fiscal Q3 2026 earnings: what the company reported
The quarter reflects a memory market in which artificial intelligence demand for DRAM and high bandwidth memory (HBM) has pushed prices and margins far above historical norms. Revenue more than quadrupled year over year and rose 74% from the prior quarter. GAAP gross margin was 84.6%, GAAP operating income was $33.32 billion, and GAAP net income was $28.24 billion, or $24.67 per diluted share [1]. The table below summarizes the key lines.
| Metric | Fiscal Q3 2026 | Fiscal Q2 2026 | Fiscal Q3 2025 |
|---|---|---|---|
| Revenue | $41.46 billion | $23.86 billion | $9.30 billion |
| Non-GAAP gross margin | 84.9% | n/a | n/a |
| GAAP net income | $28.24 billion | n/a | n/a |
| Non-GAAP diluted EPS | $25.11 | n/a | n/a |
| Operating cash flow | $25.39 billion | $11.90 billion | $4.61 billion |
Cash generation kept pace with earnings. Operating cash flow was $25.39 billion, capital expenditures were $7.1 billion, and adjusted free cash flow was $18.3 billion. Micron ended the quarter with $30.2 billion of cash and investments against $5.7 billion of total debt, repurchased $650 million of stock, and declared a quarterly dividend of $0.15 per share payable July 21, 2026 [1].
Business unit breakdown
Micron now reports four business units. Cloud Memory generated $13.77 billion of revenue, Core Data Center $11.52 billion, Mobile and Client $11.52 billion, and Automotive and Embedded $4.63 billion [1]. Together the two data center units accounted for about 61% of revenue, which shows how much the company now depends on hyperscale and AI server demand. Management said HBM4 built on its 1-beta process entered high volume shipments with a lead customer, that HBM4E development is on track for production in calendar 2027, and that multi-year strategic customer agreements should make results more durable and predictable [1].
Fiscal Q4 2026 guidance: another step up
The outlook was the part of the release that moved the stock. For the fiscal fourth quarter Micron guided revenue of $50.0 billion, plus or minus $1.0 billion, gross margin of about 86%, operating expenses of about $1.86 billion on a GAAP basis (about $1.65 billion non-GAAP), and diluted EPS of $30.73 GAAP or $31.00 non-GAAP, each plus or minus $1.00 [1]. At the midpoint, revenue would grow about 21% from the quarter just reported, and the guided gross margin implies that pricing is still improving rather than plateauing.
How Micron stock reacted to the report
The reaction was large in both directions. Based on daily prices from DataPorium's stock market data, MU closed at $1,048.51 on June 24 before the after-hours release, jumped to $1,213.56 on June 25 on volume of about 82 million shares, and traded as high as $1,255.00 that day. On June 26 the stock gave back part of the gain and closed at $1,132.33 on volume of about 86 million shares [2]. Even after the pullback the shares were about 8% above the pre-report close and about 62% above the $698.74 close of May 19, 2026, as of June 26, 2026 [2]. Moves of this size around earnings are typical for memory stocks, where results are highly sensitive to spot and contract pricing.
Micron valuation after fiscal Q3 2026
Micron reported 1,145 million diluted shares for the quarter [1]. At the June 26 close of $1,132.33 that implies a market value of roughly $1.30 trillion [2]. On the earnings side, the company's own fiscal Q4 non-GAAP EPS guidance of $31.00 annualizes to $124 per share, which puts the stock at about 9.1 times that run rate; using the $25.11 just reported, the multiple is about 11.3 times. These are low multiples for a company growing revenue at triple digits, and they reflect the market's memory of past cycles: memory margins of 85% are far above anything the industry has sustained, and pricing can reverse quickly when supply catches up with demand.
- Balance sheet strength: $30.2 billion of cash and investments against $5.7 billion of debt gives Micron room to fund capacity without leverage [1].
- Capital discipline: capital expenditures of $7.1 billion absorbed less than a third of the $25.39 billion of operating cash flow [1].
- Concentration: the two data center units now drive most of revenue, so a slowdown in AI server builds would show up quickly [1].
The counterpoint is that long-term supply agreements and the technical difficulty of HBM production may make this cycle less volatile than earlier ones. Investors may consider both views: the current earnings power is real, but the multiple already assumes that it will not last at this level indefinitely.
What to watch next
Three items matter most over the next quarter. First, the fiscal Q4 report, which DataPorium's markets calendar lists for September 30, 2026 [3], will show whether the $50 billion revenue target and 86% gross margin were met. Second, the pace of the HBM4 ramp and any new strategic customer agreements will indicate how much of fiscal 2027 revenue is already committed. Third, capital expenditure plans for the new fiscal year will signal whether the industry is adding supply fast enough to end the shortage. Investors may consider tracking DRAM contract prices and hyperscaler capital spending guidance alongside Micron's own updates.
Micron's fiscal Q3 2026 results and fiscal Q4 guidance show earnings power that the market prices at roughly nine times forward earnings because memory cycles have always turned.
Key takeaways
- Fiscal Q3 2026 revenue was $41.46 billion, up from $9.30 billion a year earlier, with non-GAAP EPS of $25.11 and a non-GAAP gross margin of 84.9% [1].
- Guidance calls for fiscal Q4 revenue of $50.0 billion, plus or minus $1.0 billion, and non-GAAP EPS of $31.00, plus or minus $1.00 [1].
- MU rose 15.7% to $1,213.56 on June 25 and closed at $1,132.33 on June 26, 2026 [2].
- At about 9 times annualized guided EPS, the valuation already discounts a future normalization of memory margins.
- The next report is expected on September 30, 2026 [3].
Frequently asked questions
What did Micron report for fiscal Q3 2026?
Micron reported revenue of $41.46 billion, GAAP diluted EPS of $24.67, non-GAAP diluted EPS of $25.11, and operating cash flow of $25.39 billion for the quarter ended May 28, 2026 [1].
What is Micron's guidance for fiscal Q4 2026?
The company guided revenue of $50.0 billion, plus or minus $1.0 billion, gross margin of about 86%, and non-GAAP diluted EPS of $31.00, plus or minus $1.00 [1].
How did Micron stock react to the earnings report?
MU closed at $1,213.56 on June 25, 2026, up 15.7% from the prior close, and then eased to $1,132.33 on June 26 [2].
Is Micron stock expensive after the earnings jump?
At $1,132.33 the stock trades at roughly 9 times the annualized midpoint of its fiscal Q4 non-GAAP EPS guidance, a low multiple that reflects the cyclical nature of memory pricing rather than a lack of growth [1][2].
