Memory chips maker Micron (NASDAQ: MU) announced better-than-expected revenue in calendar Q3 2026 (fiscal Q4 2026), with sales up 379% year on year to $54.23 billion. On top of that, next quarter’s revenue guidance ($61.5 billion at the midpoint) was surprisingly good and 6.8% above what analysts were expecting. Its non-GAAP profit of $33.42 per share was 5% above analysts’ consensus estimates.
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Micron (MU) Q3 CY2026 Highlights:
- Revenue: $54.23 billion vs analyst estimates of $50.95 billion (379% year-on-year growth, 6.4% beat)
- Adjusted EPS: $33.42 vs analyst estimates of $31.82 (5% beat)
- Adjusted Operating Income: $44.64 billion vs analyst estimates of $42.28 billion (82.3% margin, 5.6% beat)
- Revenue Guidance for Q4 CY2026 is $61.5 billion at the midpoint, above analyst estimates of $57.57 billion
- Adjusted EPS guidance for Q4 CY2026 is $38.15 at the midpoint, above analyst estimates of $35.92
- Operating Margin: 80.7%, up from 32.3% in the same quarter last year
- Free Cash Flow Margin: 61.2%, up from 0.6% in the same quarter last year
- Inventory Days Outstanding: 131, up from 122 in the previous quarter
- Market Capitalization: $1.20 trillion
“Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027,” said Sanjay Mehrotra, Chairman and CEO of Micron Technology. “AI is becoming Super Intelligence (SI), and memory enhances this intelligence and the competitiveness of our customers’ platforms. We are increasing our investments in technology, products and manufacturing to help drive SI forward with our customers, and our Strategic Customer Agreements provide added confidence in the durability of Micron’s financial performance.”
Company Overview
Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NASDAQ: MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, Micron’s sales grew at an incredible 36.9% compounded annual growth rate over the last five years. Its growth surpassed the average semiconductor company and shows its offerings resonate with customers, a great starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions (which can sometimes offer opportune times to buy).
Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore’s Law) could make yesterday’s hit product obsolete today. Micron’s annualized revenue growth of 130% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
This quarter, Micron reported magnificent year-on-year revenue growth of 379%, and its $54.23 billion of revenue beat Wall Street’s estimates by 6.4%. Beyond the beat, this marks 12 straight quarters of growth, showing that the current upcycle has had a good run - a typical upcycle usually lasts 8-10 quarters. Company management is currently guiding for a 351% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 91.3% over the next 12 months, a deceleration versus the last two years. Still, this projection is eye-popping given its scale and indicates the market is forecasting success for its products and services.
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Product Demand & Outstanding Inventory
Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’s capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.
This quarter, Micron’s DIO came in at 131, which is 21 days below its five-year average. These numbers show that despite the recent increase, there’s no indication of an excessive inventory buildup.
Key Takeaways from Micron’s Q3 Results
It was great to see Micron’s revenue guidance for next quarter top analysts’ expectations. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its inventory levels materially increased. Zooming out, we think this quarter featured some important positives. The stock remained flat at $1,064 immediately following the results.
Big picture, is Micron a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
