Micron Technology Inc. (Nasdaq: MU) reported record fiscal fourth-quarter results as higher memory prices, rising shipments and strong data-center demand lifted revenue nearly fivefold from a year earlier. The chipmaker also forecast another record year in fiscal 2027, citing tighter supply-demand conditions for memory and storage.

Revenue for the quarter ended in fiscal 2026 reached $54.23 billion, up 31% sequentially and 379% year over year. Non-GAAP gross margin was 87%, compared with 85% in the prior quarter and 46% a year earlier. Non-GAAP net income rose to $38.40 billion, or $33.42 per diluted share, while GAAP net income was $37.70 billion, or $32.87 per diluted share.

For the full fiscal year, revenue climbed 256% to $133.19 billion. Non-GAAP net income was $86.76 billion, or $75.52 per diluted share, compared with $9.47 billion, or $8.29 per share, in fiscal 2025. GAAP net income totaled $84.97 billion.

Data-center businesses lead growth

DRAM generated $39.77 billion, or 73% of fourth-quarter revenue, increasing 27% from the previous quarter. DRAM bit shipments rose by a mid-single-digit percentage, while average selling prices increased in the high-teens percentage range. Full-year DRAM revenue surpassed $100 billion, rising 252% to $100.68 billion.

NAND revenue advanced 42% sequentially to $14.10 billion, representing 26% of quarterly sales. Bit shipments increased about 10%, and average selling prices rose approximately 30%. Fiscal-year NAND revenue increased 274% to $31.79 billion.

Core Data Center Business Unit revenue climbed 56% from the prior quarter to a record $18.0 billion, driven by higher pricing and shipments. Its gross margin expanded by 290 basis points to 90%, reflecting pricing and a favorable product mix. Cloud Memory Business Unit revenue rose 18% sequentially to a record $16.3 billion, with an 83% gross margin.

Data-center SSD revenue was nearly $10 billion, more than 10 times the year-earlier level and more than two-thirds of Micron’s total NAND revenue. The company said demand opportunities are expanding as SSDs are used for AI context-memory storage, KV-cache offload and hard-disk-drive replacement.

HBM revenue grew faster than total company revenue during the quarter as Micron increased shipments across a broader customer base. The company has completed agreements covering the vast majority of its calendar 2027 HBM bit supply, with significant year-over-year price increases that it said are narrowing the gross-margin gap with conventional DRAM. Micron is also ramping HBM4 and working with NVIDIA on a custom HBM4E implementation called NVHBM.

Outside the data center, Mobile and Client Business Unit revenue increased 14% sequentially to a record $13.1 billion, despite lower bit shipments, as higher pricing and a favorable mix supported results. Nearly half of the unit’s revenue came from Micron’s 1-gamma products. Automotive and Embedded Business Unit revenue rose 47% to a record $6.8 billion on higher pricing and shipments.

Fiscal 2027 outlook and investment plans

For the first quarter of fiscal 2027, Micron expects non-GAAP revenue of $61.5 billion, plus or minus $1.5 billion, a gross margin of approximately 86.25% and diluted earnings of $38.15 per share, plus or minus $1.00. Net capital expenditures are expected to be about $11.5 billion, and the projected tax rate is around 15.5%.

Management expects fiscal 2027 to be another record year, with sequential revenue growth in each quarter. It anticipates first-quarter gross margin will be the low point for the year, partly because higher fiscal 2026 manufacturing incentive compensation was absorbed into inventories and will affect cost of sales as those inventories are sold. Gross margins are expected to be higher after the first quarter, even as the company assumes a more moderate pace of price increases.

Operating expenses are projected to increase by approximately $2.5 billion in fiscal 2027, mainly because of higher research and development spending and incentive compensation. Micron also plans to raise fiscal 2027 capital expenditures above its previous plans. Most of the increase will fund construction intended to accelerate cleanroom availability in late calendar 2028 and beyond, while some equipment spending is being pulled forward to optimize existing space.

Micron expects both DRAM and NAND markets to remain supply constrained in calendar 2027 and 2028. It projects industry DRAM bit shipments to grow in the low-20% range in both years and NAND bit shipments to grow around the mid-20% range. HBM bit shipments are expected to grow faster than conventional DRAM through 2028.

The company has signed 26 multi-year take-or-pay strategic customer agreements that it estimates will account for more than 35% of revenue through 2030. Customer financial commitments under the agreements and extensions have reached $32 billion, primarily in cash deposits. Some agreements now extend into 2031.

Micron generated $43.97 billion in fourth-quarter operating cash flow and $33.20 billion in adjusted free cash flow. Full-year operating cash flow was $89.68 billion, while adjusted free cash flow totaled $62.31 billion. The company ended the quarter with $75.48 billion of liquidity.

The outlook remains subject to uncertainty around demand, pricing, customer requirements, manufacturing execution and the timing of new capacity. Micron noted that new fabrication facilities take time to ramp and generally become more meaningful several quarters after initial output. Potential double-digit unit declines in the PC and mobile markets also remain a constraint, even as premium devices with higher memory content support industry revenue.

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