Micron Closes Record FY2026 With DRAM Revenue Above $100 Billion and Points to Tighter Supply
A 256% jump in full-year revenue, an 87% quarterly gross margin and a first-ever $100 billion DRAM year were driven by pricing rather than volume, and management now expects the memory market to be supply-constrained through 2028.
Micron closed fiscal 2026 with revenue of $133.2 billion, up 256% from the prior year, after fiscal fourth-quarter revenue of $54.2 billion that rose 31% sequentially and 379% year on year, TrendForce reported on October 1 citing the company and Investing.com. For the first time, annual DRAM revenue surpassed $100 billion. Fourth-quarter gross margin reached 87%, up 210 basis points sequentially, with operating income of $44.6 billion and an operating margin of 82%. The Core Data Center Business Unit led the growth, jumping 56% sequentially to $18.0 billion on demand for data-centre DRAM and SSDs used in AI workloads, and data-centre SSD revenue approached $10 billion, more than ten times the year-ago level and more than two thirds of total NAND revenue.
Price, not volume, carried the quarter. DRAM revenue was $39.8 billion, 73% of the total, with average selling prices up by a high-teens percentage sequentially, while NAND revenue of $14.1 billion came with bit shipments up roughly 10% and average selling prices up about 30%. That mix is what separates this cycle from earlier memory upturns: suppliers are earning the upside on price rather than adding bits on cheap new capacity. Micron has monetised the tightness into contract structure too, signing 26 strategic customer agreements estimated to cover more than 35% of revenue through 2030, with several extending into 2031, and customer financial commitments rising to $32 billion, the vast majority of it cash deposits.
Guidance points to more of the same. Reuters reported on September 30 that Micron expects fiscal first-quarter revenue of $61.5 billion plus or minus $1.5 billion, well above the analyst average estimate of $57.02 billion, and expects fiscal 2027 to be another record year with sequential revenue growth each quarter. Looking further out, Micron expects supply-demand conditions to become significantly tighter in calendar 2027 and 2028 than in 2026, with industry DRAM bit shipments growing in the low-20% range in both years while remaining supply-constrained, NAND bit shipments rising in the mid-20% range under similarly constrained conditions, and HBM shipment growth continuing to outpace conventional DRAM through 2028. It has already reached agreements covering most of its calendar 2027 HBM bit supply at prices significantly higher than a year ago.