Micron posts record Q4, raises guide as SCAs lock supply; sees memory tight through 2028

Micron Technology closed fiscal 2026 with a record quarter and raised its near-term outlook, arguing that multi-year Strategic Customer Agreements are locking in demand while memory and storage markets stay supply-constrained well into calendar 2028.

The Boise, Idaho-based company said fiscal fourth-quarter revenue was $54.23 billion for the period ended Sept. 3, 2026 — up from $41.46 billion in the prior quarter and $11.32 billion a year earlier. Non-GAAP diluted earnings were $33.42 a share; GAAP diluted EPS was $32.87. Full-year fiscal 2026 revenue reached $133.19 billion, with non-GAAP diluted EPS of $75.52, according to Micron’s Sept. 30 earnings release.

For fiscal first-quarter 2027, Micron guided revenue to $61.5 billion, plus or minus $1.5 billion, with non-GAAP diluted EPS of $38.15, plus or minus $1.00, and non-GAAP gross margin of about 86.25%. Those figures sit above Wall Street consensus cited by CNBC and Reuters (LSEG), which had centered near $57 billion in revenue and roughly $35.40 in adjusted EPS.

CEO Sanjay Mehrotra framed the cycle as structural, not fleeting. In prepared remarks, he said Micron expects “memory and storage supply-demand conditions to be much tighter in calendar 2027 and 2028 than they were in 2026,” and that even with planned industry cleanroom additions, “we do not have line of sight to when supply and demand will return to balance.”

That tightness claim is the company outlook — distinct from third-party DRAM/NAND contract-price tips — and it is paired with Micron’s own commercial tools: Strategic Customer Agreements, or SCAs.

Mehrotra defined SCAs as multi-year take-or-pay agreements that improve Micron’s long-term supply planning and give customers assured volumes and deeper roadmap collaboration. As of the call, Micron had signed 26 SCAs covering what it estimates as more than 35% of revenue through 2030. About three-quarters of that SCA revenue pool carries a defined pricing framework (often with floor and ceiling bands); the rest is negotiated periodically against market prices. Some deals now stretch into 2031, including one-year extensions on two agreements.

Customer financial commitments tied to the 26 SCAs and extensions have risen to $32 billion — mostly cash deposits — up from $22 billion reported in June, Reuters noted. CFO Mark Murphy said remaining performance obligations under priced SCAs are about $150 billion, a figure he described as conservative because it uses minimum pricing. On the call, Mehrotra added that more than 75% of Micron’s calendar 2027 output is already committed across SCA and non-SCA customers, with most live allocation talks already pointed at 2028.

Product mix underscores why AI buyers are writing long-dated checks. Fiscal Q4 DRAM revenue was a record $39.8 billion, or 73% of sales; NAND was a record $14.1 billion, or 26%. Data-center SSD revenue alone was nearly $10 billion in the quarter — more than two-thirds of Micron’s NAND — while HBM revenue grew faster than the company overall. Micron said it has agreements covering the vast majority of its calendar 2027 HBM bit supply at significantly higher year-over-year prices. Fiscal 2026 DRAM revenue surpassed $100 billion, Mehrotra said.

Micron is answering the shortage with more bricks before more tools. Supported by SCA visibility “through the end of the decade and beyond,” it plans higher fiscal 2027 capital spending than prior plans, mostly construction CapEx aimed at cleanroom space by late calendar 2028 and beyond. Murphy guided first-quarter CapEx around $11.5 billion and first-half fiscal 2027 CapEx near $25 billion, with a heavier second half and a rising share of construction versus equipment.

Independent coverage tracked the same spine. Reuters highlighted the beat-and-raise and the jump in SCA deposits and RPO; CNBC stressed Micron’s position as the sole U.S. HBM producer amid a global memory crunch. Neither replaces Micron’s IR tables, but both confirm the market read: demand still outruns supply, and buyers are paying for certainty.

Risks remain. Guidance and tightness comments are forward-looking and subject to demand swings, node yields, equipment lead times, and competitive capacity from Samsung and SK hynix. RPO is not a revenue forecast; SCA revenue can still vary with pricing bands and volumes. Micron’s formal fiscal Q4 package sits in its Sept. 30 Form 8-K and IR release; the annual Form 10-K typically follows later.

For now, the company’s message is blunt: record results, a raised guide, take-or-pay SCAs locking a large slice of forward revenue, and a management view that memory stays tight through calendar 2028 — with no line of sight yet to balance.