Svmuu News Micron released its financial report this morning; key information is summarized below
I. Financial Performance (Reported Quarter)
Quarterly revenue was $41.46 billion (reported as $41.5 billion by some sources), exceeding market expectations of approximately $35.8 billion.
Adjusted EPS was $25.11, exceeding market expectations of approximately $20.7–$20.8.
Gross margin was 84.9%, higher than the market expectation of 81.9%.
II. Guidance for the Next Quarter (Q4)
Revenue guidance: $49.0 billion to $51.0 billion, with a midpoint of $50.0 billion, exceeding market expectations of $43.24 billion.
Adjusted EPS guidance: $30 to $32, with a midpoint of $31, exceeding market expectations of $25.31.
III. Long-Term Agreements (LTA/SCA) and Customer Commitments
The company has signed 16 long-term strategic customer agreements, with terms primarily covering the period from 2026 through the end of 2030. The agreements include take-or-pay clauses.Management estimates that these agreements represent approximately $100 billion in guaranteed revenue. The company will receive approximately $22 billion in cash deposits and financial commitments. The signed agreements cover approximately 20% of DRAM production and about one-third of NAND production during the relevant period. Management expects that approximately half or more of future revenue will be covered by long-term agreements.
IV. Supply, Demand, and Industry Outlook
The company expects supply and demand tightness in the DRAM and NAND markets to persist beyond 2027. DRAM industry shipments in 2026 are projected to grow by 20%–25%, an upward revision from previous expectations.NAND industry shipments in 2026 are projected to grow by approximately 20%, in line with previous expectations.
MicronDRAM supply growth is expected to be broadly in line with the industry. Micron NAND supply growth is expected to be slightly below the industry average.
V. Capital Expenditures and Return on Capital
Market feedback indicates that the company’s capital expenditures are in line with expectations. No notably aggressive expansion plans have been observed. The company stated that it will significantly improve its return on capital in Q4. The $22 billion in customer prepayments is roughly equivalent to one-third of capital expenditures over the next two years.