Micron FY2026: AI Memory Demand, Financial Results and RPO
Originally published 2026-10-02. Translation and editorial review: 14 October 2026. Market figures refer to the original reporting period.
If anyone is asking the question, “Is the AI Boom really going to continue?” Micron Technology's (NASDAQ: MU)'s latest financial results may be another important piece of information worth keeping an eye on.
Micron competes with Samsung Electronics and SK Hynix in memory. Its fiscal 2026 fourth-quarter results, announced on 30 September 2026, highlighted strong AI and data-centre demand.
📊 Important numbers
• Latest quarter revenue of $54.23 billion compared to just $11.32 billion in the year-ago period. or equivalent to almost 4.8 times
• The previous quarter saw revenue of $41.46 billion, meaning the company continued to grow quarter-over-quarter.
• GAAP net income was $37.70 billion.
• Non-GAAP EPS of $33.42, higher than market expectations of $31.61.
• Operating Cash Flow Single Quarter Hits $43.97 Billion
• Non-GAAP Gross Margin reached 87% compared to only 45.7% in the same period last year.
• Full year FY2026 revenue was $133.19 billion compared to $37.38 billion in FY2025.
And what the market is more interested in than past numbers is Micron's future.
The Company expects that the first quarter of FY2027 will generate revenue of approximately
👉 $61.5 billion ± $1.5 billion
, while the average analyst expected only about $57.02 billion.
Micron also estimates adjusted earnings per share of $38.15 ± $1, higher than the market's expectation of $35.40.
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🤖 Why is Micron growing so strongly?
The main answer is “AI”
But it's not AI in the sense of ChatGPT or Software alone.
Building large-scale AI models requires enormous data centers, and those data centers include more than just Nvidia GPUs.
GPU requires high speed memory to send and receive large amounts of data all the time.
This is where HBM — High Bandwidth Memory becomes one of the most important parts of an AI system.
Simply put,
GPU = Brain used for calculations HBM = High-speed memory system that feeds information to the brain.
Even though the GPU is very powerful, the memory cannot send data in time. System performance will be limited.
Micron is one of the world's largest HBM manufacturers, along with SK Hynix and Samsung.
Reuters reports that Micron executives have even stated that memory is one of the key constraints on expanding AI infrastructure, and data centers have become the company's largest market for memory and storage.
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💰 What is the significance of the $32 billion figure?
Micron revealed that Financial Commitments from customers under long-term supply contracts increased from approximately
$22 billion → $32 billion
And interestingly, Reuters reports that the majority of these commitments are in the form of deposits from customers.
This is very meaningful.
Because customers don't just say “I might buy chips from you next year.”
But some customers are putting their money down and making deals upfront. To ensure that you have enough memory to expand the AI system.
This is why the term “Lock Supply” has more meaning this time around.
Micron also stated that it has secured deals for the majority of 2027 HBMs.
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🤯 So what is $150 billion?
Another very interesting number is
Remaining Performance Obligations, or RPOs, approximately $150 billion.
Last quarter this figure was around $100 billion.
equates to an additional approximately $50 billion in just one quarter.
RPO can be viewed simply as “the value of contractual obligations that a company still has to deliver to its customers and has not yet been recognized as revenue.”
Therefore, it must be emphasized that
⚠️ $150 billion is not all of the cash Micron has received, nor is it all of the revenue recorded for the company.
, but is a number that reflects the size of the business covered by future deals.
Micron's CFO noted that RPO increased from approximately $100 billion to approximately $150 billion, and the company expects FY2027 to be another record year.
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🏭 Micron's problem right now isn't that it can't sell, but that it "can't produce in time"
This is the part that I find most interesting about this news.
Micron states that incoming orders are significantly higher than the company's production capacity.
and the Semiconductor Factory It is not something that can be created today and immediately increase supply tomorrow.
Micron is expanding production capacity in the U.S., Japan and other facilities around the world. The company has increased its investment plans in the US to more than $250 billion through 2035.
But some of the new capacity is expected to start producing wafers in mid-2027, and after that it will take several more quarters for capacity to ramp up significantly.
That makes the picture of the market now.
Demand runs very fast, but Supply increases more slowly.
And this is the environment that helps memory manufacturers have higher pricing power.
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🔥 What does Gross Margin 87% tell us?
This figure is also very interesting.
Micron's most recent quarter Non-GAAP Gross Margin was 87%.
compared to the same period last year only 45.7%.
That's why company profits grow much faster than revenue.
And next quarter, Micron still expects Non-GAAP Gross Margin to be around 86.25%, which means the company doesn't expect the high margin situation to disappear immediately next quarter.
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🌎 So what does this news say about the AI Boom?
In the past, we often saw news that Amazon, Microsoft, Google, Meta, and other major technology companies announced hundreds of billions of dollars in investments in AI.
The question is…
Were those funds actually used or just an “investment plan”?
Micron figures are evidence that money is actually flowing down the supply chain.
Reuters says Amazon, Alphabet and other major tech companies plan to spend a combined total of more than $730 billion on AI Infrastructure by 2026.
These funds do not just go to the GPU, but are spread throughout.
GPU → HBM → DRAM → NAND → SSD → Networking → Data Center → Cooling → Electrical System
This is why this round of AI Boom isn't the only one benefiting from Nvidia.
but is dragging the entire Supply Chain up as well.
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📈 Impact on investors
This news helps support the view that the demand for AI Infrastructure In the short term, it is still strong.
especially the group
MicronSamsung ElectronicsSK Hynix equipment manufacturer SemiconductorServer ManufacturerData CenterStorageNetworking and Power Systems for Data Centers
After Micron reveals strong guidance on Semiconductor stocks South Korea also received support, with Samsung Electronics and SK Hynix rising on October 1, while export data Semiconductor of South Korea also set a very high record.
But we must not forget that Memory is a cyclical industry.
The history of this business is often
Chip Prices Rise → High Profit Producers → Every company invests in more factories → Supply increases → One day Supply exceeds Demand → Chip prices decrease → Margin decreases quickly.
So for investors The important question may not only be
“How strong is Micron growing?”
but is
“Will AI demand grow fast enough to absorb the new supply that is being created?”
and
“How long can Gross Margin levels of 80%+ be maintained?”
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🌍 Impact on the world economy
The AI competition is making semiconductor shift from a “technology product” to an infrastructure. strategic
The United States, Japan, South Korea, and other countries are trying to build more domestic chip factories.
Because if one day the world fails
GPUMemoryElectrical or Data Center
The ability to develop AI will be immediately limited.
Samsung itself recently estimated that HBM could take up nearly 30% of the industry's DRAM wafer capacity next year, up from around 20% currently.
This means that HBM is actually competing for capacity with other types of DRAM.
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👨👩👧👦 So what are the effects of the general public?
This story is not as far off as you think.
If chip factories have to allocate large amounts of production capacity to producing more HBMs for AI, the supply of other types of memory may become tight as well.
What we should keep an eye on is the price.
RAMSSDNotebookPCSmartphoneServerCloud Services
does not mean that all products will “Must be more expensive” immediately
But if AI demand continues to grow faster than production capacity for many years, the costs of memory and infrastructure will increase. Can be passed on to products and services that consumers use in their daily lives.
On the other hand, when new supply starts to catch up with demand, we may see AI Compute become cheaper, AI services become more accessible. and more devices with AI inside.
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💡 What I consider to be the most important from this news.
Not just Micron, revenue grew almost 5 times.
And it's not just record profits.
But the technology company is agreeing to make a long-term contract + make a commitment + reserve production capacity in advance.
That reflects that the AI competition is entering a new level.
from the original competition that
“Who has the smarter AI?”
is becoming a competition that
“Who has enough GPUs?” “Who has enough HBM?” “Who has enough Data Center?” “Who has enough electricity?”
And according to Micron's latest numbers…
Demand seems to be outpacing our ability to increase supply.
AI Boom is therefore not just a matter of software.
But it's turning into a building competition. Infrastructure World level already
📌 Background information: Micron Technology / Reuters📌 Earnings announced September 30, 2026
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This content is created for educational purposes and to present information. It is not a recommendation to buy or sell securities. Investing is risky. Investors should study additional information before making a decision.
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