Micron Q3 Revenue Crushes at $41.5B; Q4 Guidance $50B with 16 Multi-Year SCAs Locking $100B

Micron reported fiscal Q3 2026 revenue of $41.46 billion, up 346% year-over-year from $9.30 billion and well ahead of Wall Street consensus of $35.25 billion, with adjusted EPS of $25.11 beating expectations of $20.28. Gross margin reached approximately 84.6%, with gross margin guidance for fiscal Q4 expanding to 86%. The company guided fiscal Q4 revenue to $50 billion (plus or minus $1 billion)—roughly $6–7 billion above analyst consensus of $43.6 billion—and adjusted EPS of $30–32, positioning Micron's profits at levels the market is only beginning to price in.

Beyond the record quarter, Micron announced 16 Strategic Customer Agreements (SCAs) spanning data center operators, automakers, and other customers, with approximately $100 billion in minimum contracted revenue and $22 billion in upfront customer cash deposits covering committed volumes through calendar 2030. These take-or-pay contracts set floor prices guaranteeing gross margins above any level achieved in any prior cycle and cover roughly 20% of Micron's DRAM volume and one-third of its NAND volume. The company's entire 2026 HBM supply is already sold out under fixed-price contracts, and HBM4—the next generation—ramped at roughly twice the pace of the prior HBM3E generation.

For infrastructure teams and procurement, Micron's guidance confirms that the memory shortage is structural, not cyclical. Supply tightness is expected to persist beyond calendar 2027, and the company increased 2026 capex by $5 billion (full-year now ~$27 billion net of government incentives) signaling confidence that demand will remain strong. The SCA framework locks in pricing for customers but removes volume flexibility—a fundamental shift from prior DRAM cycles that tells vendors to either lock long-term supply now or face allocation constraints through 2027 at minimum.