NEW YORK — Micron Technology (NASDAQ: MU) reported fiscal third-quarter 2026 revenue of $41.46 billion, surpassing its own guidance and analyst expectations. The company posted diluted earnings per share of $25.11, beating the $21.39 analyst consensus by $3.72.
The Q3 results blew past management's official guidance, which called for revenue of $33.50 billion, plus or minus $750 million, and non-GAAP diluted EPS of $19.15, plus or minus 40 cents. Gross margin reached 84.9 percent, well above the guided 81 percent. CEO Sanjay Mehrotra said the company expected "significant records again in fiscal Q3"—a forecast that materialized.
The Q3 results follow a strong fiscal Q2 2026, where Micron beat EPS estimates by 40 percent and grew operating income 810 percent year over year. These results extend a streak of seven consecutive earnings beats for the memory chip manufacturer.
Micron secured 16 strategic customer agreements covering data center, consumer and automotive markets. Those agreements represent approximately 20 percent of DRAM volume and one-third of NAND volume over the period and include roughly $22 billion in deposits and financial commitments.
Management expects AI-driven demand to keep DRAM and NAND supply tight beyond calendar 2027. The company is expanding capacity through major fab investments in Idaho, New York, Taiwan, Japan, Singapore and Virginia.
Despite a 17 percent drawdown from its early-June high of $1,079.57 to a recent price around $925, Micron shares remain up 177 percent year to date through Aug. 10. The pullback reflects profit-taking and concerns about overheated positioning.
Micron trades at a forward price-to-earnings ratio of 11.99. The Street's forward EPS estimate sits at $158 for the coming 12 months, which meaningfully compresses the forward multiple given the Q3 run rate.
Analyst conviction is high, with 89 percent buy ratings and only one sell rating across Wall Street. Morgan Stanley analysts cleared AI stocks for continued upside, confirming revenues are growing fast enough for AI hyperscalers to sustain semiconductor purchases.
Post-earnings price target revisions are a key catalyst for MU shares. Technical indicators show a buy signal from a pivot bottom on July 29, 2026, with the stock rising 18.75 percent since then. The three-month Moving Average Convergence Divergence also registers a buy signal.
Analysts expect the stock to rise 6.52 percent over the next three months, with a 90 percent probability of holding a price between $796.39 and $1,332.15.
Micron plans fiscal Q4 capital expenditures of about $10 billion and intends to increase capital returns beginning after the December 2026 CHIPS-related milestone.
