Micron achieved a record 84.6% gross margin in 2026Q3, reflecting significant pricing power as revenue grew to $41.5B amid strong AI-driven demand.
| Metric | TTM | Aug'25 | Aug'24 | Aug'23 | Sep'22 | Sep'21 | Sep'20 | Aug'19 | Aug'18 | Aug'17 | Sep'16 | Sep'15 | Aug'14 | Aug'13 | Aug'12 | Sep'11 | Sep'10 | Sep'09 | Oct'08 | Oct'07 | Aug'06 | Sep'05 | Sep'04 | Aug'03 | Aug'02 | Aug'01 | Jul'00 | Sep'99 | Sep'98 | Aug'97 | Aug'96 |
|---|
| Sales/Revenue | 90.27B | 37.38B | 25.11B | 15.54B | 30.76B | 27.7B | 21.43B | 23.41B | 30.39B | 20.32B | 12.4B | 16.19B | 16.36B | 9.07B | 8.23B | 8.79B | 8.48B | 4.8B | 5.84B | 5.69B | 5.27B | 4.88B | 4.4B | 3.09B | 2.59B | 3.94B | 7.34B | 3.76B | 3.01B | 3.52B | 3.65B |
| Revenue Growth % | 166.98% | 48.85% | 61.59% | -49.48% | 11.02% | 29.25% | -8.42% | -22.98% | 49.55% | 63.9% | -23.43% | -1.01% | 80.29% | 10.19% | -6.3% | 3.61% | 76.6% | -17.77% | 2.69% | 7.89% | 8.03% | 10.81% | 42.47% | 19.4% | -34.22% | -46.35% | 94.91% | 24.97% | -14.33% | -3.79% | 23.74% |
| Cost of Goods Sold | 24.76B | 22.5B | 19.5B | 16.96B | 16.86B | 17.28B | 14.88B | 12.7B | 12.5B | 11.89B | 9.89B | 10.98B | 10.92B | 7.23B | 7.27B | 7.03B | 5.77B | 5.24B | 5.9B | 4.61B | 4.07B | 3.73B | 3.09B | 3.11B | 2.7B | 3.9B | 3.95B | 3B | 2.77B | 2.54B | 2.2B |
| COGS % of Revenue | - | 60.21% | 77.65% | 109.11% | 54.82% | 62.38% | 69.43% | 54.28% | 41.13% | 58.49% | 79.8% | 67.79% | 66.76% | 79.64% | 88.24% | 80% | 68% | 109.16% | 100.94% | 81.05% | 77.24% | 76.52% | 70.15% | 100.67% | 104.27% | 99.06% | 53.83% | 79.78% | 91.83% | 72.23% | 60.17% |
| Gross Profit | 65.51B | 14.87B | 5.61B | -1.42B | 13.9B | 10.42B | 6.55B | 10.7B | 17.89B | 8.44B | 2.5B | 5.21B | 5.44B | 1.85B | 968M | 1.76B | 2.71B | -440M | -55M | 1.08B | 1.2B | 1.15B | 1.31B | -20.7M | -110.6M | 37.1M | 3.39B | 761.1M | 246.1M | 976.3M | 1.46B |
| Gross Margin % | 72.57% | 39.79% | 22.35% | -9.11% | 45.18% | 37.62% | 30.57% | 45.72% | 58.87% | 41.51% | 20.2% | 32.21% | 33.24% | 20.36% | 11.76% | 20% | 32% | -9.16% | -0.94% | 18.95% | 22.76% | 23.48% | 29.85% | -0.67% | -4.27% | 0.94% | 46.17% | 20.22% | 8.17% | 27.77% | 39.83% |
| Gross Profit Growth % | - | 164.97% | 496.4% | -110.19% | 33.34% | 59.08% | -38.78% | -40.18% | 112.08% | 236.77% | -51.97% | -4.08% | 194.37% | 90.81% | -44.94% | -35.22% | 716.82% | -700% | -105.1% | -10.17% | 4.73% | -12.85% | 6451.21% | 81.28% | -398.11% | -98.9% | 345.05% | 209.26% | -74.79% | -32.92% | -10.38% |
| Operating Expenses | 6.13B | 5B | 4.31B | 4.33B | 4.2B | 4.19B | 3.55B | 3.33B | 2.9B | 2.57B | 2.34B | 2.22B | 2.35B | 469M | 1.59B | 1B | 1.14B | 1.11B | 1.51B | 1.34B | 851M | 929.7M | 1.09B | 1.06B | 914.7M | 1.09B | 1.09B | 808.1M | 739.7M | 573.9M | 481.3M |
| OpEx % of Revenue | - | 13.38% | 17.16% | 27.86% | 13.64% | 15.12% | 16.56% | 14.21% | 9.53% | 12.64% | 18.85% | 13.69% | 14.37% | 5.17% | 19.26% | 11.41% | 13.38% | 23.07% | 25.8% | 23.54% | 16.14% | 19.05% | 24.69% | 34.18% | 35.33% | 27.62% | 14.91% | 21.47% | 24.56% | 16.32% | 13.17% |
| Selling, General & Admin | 1.4B | 1.21B | 1.13B | 920M | 1.07B | 894M | 881M | 836M | 813M | 730M | 656M | 720M | 708M | 513M | 620M | 592M | 528M | 354M | 455M | 610M | 460M | 326M | 332.6M | 400.2M | 332.3M | 524.1M | 666.5M | 486M | 467.9M | 365M | 289.4M |
| SG&A % of Revenue | - | 3.22% | 4.5% | 5.92% | 3.47% | 3.23% | 4.11% | 3.57% | 2.68% | 3.59% | 5.29% | 4.45% | 4.33% | 5.65% | 7.53% | 6.74% | 6.22% | 7.37% | 7.79% | 10.72% | 8.73% | 6.68% | 7.55% | 12.95% | 12.84% | 13.32% | 9.09% | 12.91% | 15.53% | 10.38% | 7.92% |
| Research & Development | 4.77B | 3.8B | 3.43B | 3.11B | 3.12B | 2.66B | 2.6B | 2.44B | 2.34B | 2.04B | 1.82B | 1.76B | 1.53B | 1.11B | 918M | 791M | 624M | 647M | 680M | 805M | 656M | 603.7M | 754.9M | 656.4M | 561.3M | 489.5M | 427.5M | 322.1M | 271.8M | 208.9M | 191.9M |
| R&D % of Revenue | - | 10.16% | 13.66% | 20.04% | 10.13% | 9.61% | 12.13% | 10.43% | 7.71% | 10.02% | 14.69% | 10.89% | 9.37% | 12.2% | 11.15% | 9% | 7.36% | 13.47% | 11.64% | 14.15% | 12.44% | 12.37% | 17.14% | 21.23% | 21.68% | 12.44% | 5.83% | 8.56% | 9.02% | 5.94% | 5.25% |
| Other Operating Expenses | -1000K | 0 | -250M | 295M | 14M | 632M | 68M | 49M | -258M | -199M | -141M | -267M | 109M | 0 | 0 | 0 | -17M | 107M | 372M | -76M | -265M | 0 | 0 | 0 | 21.1M | 73.6M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 59.37B | 9.87B | 1.3B | -5.75B | 9.7B | 6.28B | 3B | 7.38B | 14.99B | 5.87B | 168M | 3B | 3.09B | 450M | -618M | 755M | 1.59B | -1.68B | -1.59B | -280M | 350M | 217.5M | 249.7M | -1.19B | -1.03B | -976.5M | 2.29B | -47M | -493.6M | 402.4M | 944.5M |
| Operating Margin % | 65.76% | 26.41% | 5.19% | -36.97% | 31.54% | 22.68% | 14.01% | 31.51% | 49.34% | 28.88% | 1.35% | 18.52% | 18.87% | 4.96% | -7.51% | 8.59% | 18.73% | -34.89% | -27.31% | -4.92% | 6.64% | 4.46% | 5.67% | -38.38% | -39.6% | -24.81% | 31.26% | -1.25% | -16.39% | 11.45% | 25.85% |
| Operating Income Growth % | - | 656.9% | 122.7% | -159.21% | 54.42% | 109.22% | -59.29% | -50.81% | 155.52% | 3392.86% | -94.4% | -2.88% | 586% | 172.82% | -181.85% | -52.49% | 194.81% | -5.08% | -469.64% | -180% | 60.92% | -12.9% | 121.05% | -15.72% | -5% | -142.58% | 4979.36% | 90.48% | -222.66% | -57.4% | -27.15% |
| EBITDA | 44.87B | 18.22B | 9B | 1.93B | 16.73B | 12.41B | 8.65B | 12.8B | 19.75B | 9.73B | 3.15B | 5.67B | 5.19B | 2.25B | 1.52B | 2.86B | 3.59B | 510M | 465M | 1.44B | 1.63B | 1.48B | 1.47B | 23.4M | 152.1M | 137.9M | 3.29B | 796.3M | 113M | 864.1M | 1.31B |
| EBITDA Margin % | 49.7% | 48.75% | 35.85% | 12.39% | 54.4% | 44.81% | 40.37% | 54.69% | 65% | 47.87% | 25.39% | 34.99% | 31.73% | 24.84% | 18.5% | 32.54% | 42.37% | 10.62% | 7.96% | 25.28% | 30.94% | 30.37% | 33.31% | 0.76% | 5.87% | 3.5% | 44.81% | 21.16% | 3.75% | 24.58% | 35.8% |
| EBITDA Growth % | 185.59% | 102.42% | 367.64% | -88.5% | 34.78% | 43.48% | -32.4% | -35.2% | 103.03% | 209.05% | -44.43% | 9.15% | 130.26% | 48% | -46.75% | -20.42% | 604.71% | 9.68% | -67.66% | -11.83% | 10.05% | 1.01% | 6170.09% | -84.62% | 10.3% | -95.81% | 312.86% | 604.69% | -86.92% | -33.95% | -12.52% |
| D&A (Non-Cash Add-back) | -14.5B | 8.35B | 7.7B | 7.67B | 7.03B | 6.13B | 5.65B | 5.42B | 4.76B | 3.86B | 2.98B | 2.67B | 2.1B | 1.8B | 2.14B | 2.1B | 2B | 2.19B | 2.06B | 1.72B | 1.28B | 1.26B | 1.22B | 1.21B | 1.18B | 1.11B | 994.3M | 843.3M | 606.6M | 461.7M | 363.7M |
| EBIT | 59.46B | 10.14B | 1.25B | -5.46B | 9.71B | 6.8B | 3.06B | 7.39B | 14.93B | 5.88B | 234M | 2.98B | 3.37B | 450M | -575M | 675M | 2.1B | -1.67B | -1.53B | -261M | 349M | 245.5M | 268M | -1.08B | -1.03B | -1.05B | 2.39B | -19.6M | -516.4M | 374.1M | 988.5M |
| Net Interest Income | 425M | 19M | -33M | 80M | -93M | -146M | -80M | 77M | -222M | -560M | -395M | -336M | -329M | -217M | -171M | -101M | -160M | -160M | -3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 655M | 496M | 529M | 468M | 96M | 37M | 114M | 205M | 120M | 41M | 42M | 35M | 23M | 14M | 0 | 23M | 18M | 22M | 79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 230M | 477M | 562M | 388M | 189M | 183M | 194M | 128M | 342M | 601M | 437M | 371M | 352M | 231M | 171M | 124M | 178M | 182M | 82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -279M | -207M | -75M | 89M | -127M | -28M | -13M | -325M | -688M | -664M | -424M | 58M | 120M | 752M | -142M | -210M | 331M | -176M | -16M | 112M | 83M | -18.9M | 4.2M | -13.7M | 26.8M | 17M | -15.2M | -44.5M | 140.2M | 168.4M | -8.4M |
| Pretax Income | 59.09B | 9.66B | 1.23B | -5.66B | 9.57B | 6.25B | 2.99B | 7.05B | 14.31B | 5.2B | -256M | 3.06B | 3.21B | 1.2B | -754M | 551M | 1.92B | -1.85B | -1.61B | -168M | 433M | 198.6M | 232M | -1.2B | -998.5M | -959.5M | 2.32B | -91.5M | -335.2M | 619.1M | 950.5M |
| Pretax Margin % | 65.45% | 25.85% | 4.89% | -36.4% | 31.13% | 22.58% | 13.95% | 30.12% | 47.07% | 25.61% | -2.06% | 18.87% | 19.61% | 13.25% | -9.16% | 6.27% | 22.64% | -38.56% | -27.58% | -2.95% | 8.21% | 4.07% | 5.27% | -38.83% | -38.57% | -24.38% | 31.58% | -2.43% | -11.13% | 17.61% | 26.01% |
| Income Tax | 8.61B | 1.12B | 451M | 177M | 888M | 394M | 280M | 693M | 168M | 114M | 19M | 157M | 128M | 8M | -17M | 203M | -19M | 1M | 18M | 30M | 18M | 10.6M | 74.8M | 73M | -91.5M | -446M | 796.7M | -36M | -118.8M | 267.3M | 357M |
| Effective Tax Rate % | 14.57% | 11.63% | 36.7% | -3.13% | 9.27% | 6.3% | 9.36% | 9.83% | 1.17% | 2.19% | -7.42% | 5.14% | 3.99% | 0.67% | 2.25% | 36.84% | -0.99% | -0.05% | -1.12% | -17.86% | 4.16% | 5.34% | 32.24% | -6.08% | 9.16% | 46.48% | 34.38% | 39.34% | 35.44% | 43.18% | 37.56% |
| Net Income | 50.47B | 8.54B | 778M | -5.83B | 8.69B | 5.86B | 2.69B | 6.31B | 14.13B | 5.09B | -276M | 2.9B | 3.04B | 1.19B | -1.03B | 167M | 1.85B | -1.88B | -1.62B | -320M | 408M | 188M | 157.2M | -1.27B | -907M | -625M | 1.5B | -68.9M | -233.7M | 332.2M | 593.5M |
| Net Margin % | 55.91% | 22.84% | 3.1% | -37.54% | 28.24% | 21.15% | 12.54% | 26.97% | 46.51% | 25.04% | -2.23% | 17.9% | 18.61% | 13.12% | -12.53% | 1.9% | 21.81% | -39.18% | -27.72% | -5.63% | 7.74% | 3.85% | 3.57% | -41.19% | -35.03% | -15.88% | 20.5% | -1.83% | -7.76% | 9.45% | 16.24% |
| Net Income Growth % | 710.81% | 997.56% | 113.34% | -167.15% | 48.22% | 118.12% | -57.44% | -55.34% | 177.76% | 1943.84% | -109.52% | -4.79% | 155.88% | 215.31% | -717.96% | -90.97% | 198.3% | -16.24% | -405.94% | -178.43% | 117.02% | 19.59% | 112.35% | -40.37% | -45.12% | -141.55% | 2283.16% | 70.52% | -170.35% | -44.03% | -29.69% |
| Net Income (Continuing) | 50.48B | 8.54B | 778M | -5.83B | 8.69B | 5.86B | 2.71B | 6.36B | 14.14B | 5.09B | -275M | 2.9B | 3.08B | 0 | -737M | 348M | 1.94B | -1.81B | -1.63B | -198M | 415M | 188M | 157.2M | -1.27B | -907M | -521.2M | 1.55B | -59M | -247.1M | 315M | 593.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 889M | 870M | 849M | 848M | 937M | 802M | 864M | 717M | 1.38B | 1.8B | 1.99B | 2.87B | 2.61B | 1.57B | 0 | 0 | 0 | 0 | 0 | 199.3M | 168.3M | 152.1M | 136.5M | 53.8M |
| EPS (Diluted) | 44.08 | 7.59 | 0.70 | -5.34 | 7.74 | 5.14 | 2.37 | 5.52 | 11.50 | 4.41 | -0.27 | 2.47 | 2.54 | 1.13 | -1.04 | 0.17 | 1.85 | -2.35 | -2.10 | -0.42 | 0.57 | 0.29 | 0.24 | -2.10 | -1.51 | -1.06 | 2.56 | -0.13 | -0.55 | 0.72 | 1.38 |
| EPS Growth % | 696.04% | 984.29% | 113.11% | -168.99% | 50.58% | 116.88% | -57.07% | -52% | 160.77% | 1733.33% | -110.93% | -2.76% | 124.78% | 208.65% | -711.76% | -90.81% | 178.72% | -11.9% | -400% | -173.68% | 96.55% | 20.83% | 111.43% | -39.07% | -42.45% | -141.41% | 2069.23% | 76.36% | -176.39% | -47.83% | -29.23% |
| EPS (Basic) | - | 7.65 | 0.70 | -5.34 | 7.81 | 5.23 | 2.42 | 5.67 | 11.51 | 4.67 | -0.27 | 2.71 | 2.87 | 1.16 | -1.04 | 0.17 | 2.09 | -2.35 | -2.10 | -0.42 | 0.59 | 0.31 | 0.26 | -2.10 | -1.51 | -1.06 | 2.73 | -0.13 | -0.55 | 0.75 | 1.38 |
| Diluted Shares Outstanding | 1.15B | 1.13B | 1.12B | 1.09B | 1.12B | 1.14B | 1.13B | 1.14B | 1.23B | 1.15B | 1.04B | 1.17B | 1.2B | 1.06B | 991.2M | 1.01B | 1.05B | 800.7M | 772.5M | 769.1M | 725.1M | 648.28M | 654.17M | 607.5M | 601.5M | 592.4M | 605.4M | 521.5M | 426.03M | 437.5M | 430M |
| Basic Shares Outstanding | 1.13B | 1.12B | 1.1B | 1.09B | 1.11B | 1.12B | 1.11B | 1.11B | 1.23B | 1.09B | 1.02B | 1.07B | 1.06B | 1.02B | 991.2M | 988M | 887.5M | 800.7M | 772.5M | 769.1M | 691.7M | 647.1M | 640.3M | 607.5M | 601.5M | 592.4M | 550.9M | 521.5M | 426.03M | 420M | 430M |
| Dividend Payout Ratio | - | 6.11% | 65.94% | - | 5.31% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 5.26% |
Cyclical demand and yield volatility
As reported in recent financial statements, Micron's revenue trajectory has shifted dramatically, culminating in a 3.5% sequential increase to $41.5B in 2026Q3, reflecting a sustained period of aggressive top-line expansion fueled by high-value memory demand within the broader data center and AI-accelerator ecosystem.
The acceleration in revenue growth appears to be a direct consequence of the company's strategic pivot toward high-bandwidth memory products. Investors should monitor whether this growth remains durable or if it is merely a temporary byproduct of current AI infrastructure build-outs.
Based on the company's latest filings, gross margins have expanded significantly to 84.6% in 2026Q3, suggesting that Micron is successfully leveraging its proprietary memory nodes to command premium pricing power that far exceeds historical norms for the commodity-heavy semiconductor memory industry.
This margin profile indicates a potential shift in the company's ability to extract value from its product mix. However, such elevated levels warrant further investigation into whether they are sustainable or if they reflect a cyclical peak in ASPs that may eventually face mean reversion.
According to the provided income statement data, Micron has demonstrated exceptional operating leverage, with operating income surging to $33.3B in 2026Q3 as SG&A expenses remained remarkably contained at $407M, indicating a highly efficient scaling of the business model during this period of rapid revenue growth.
The ability to grow operating income at a faster rate than gross profit suggests that the company's fixed-cost base is being utilized with increasing efficiency. This trend may indicate that the current operational structure is well-positioned to maximize profitability during periods of high demand.
As evidenced by the quarterly income statements, Micron has maintained strict discipline over its cost structure, with R&D spending rising only modestly to $1.3B in 2026Q3 despite the massive scale-up in revenue, highlighting a focused approach to capital allocation and operational expense management.
The company's ability to keep R&D and SG&A growth significantly below revenue growth suggests a high degree of management focus on margin preservation. This discipline is critical for a capital-intensive manufacturer, though investors should monitor if this level of spending is sufficient to maintain long-term technological leadership.
While current figures show record profitability, a critical analysis of the income statement suggests that the 84.6% gross margin may be unsustainable, as historical cycles in the memory industry often lead to sharp margin compression when supply-demand imbalances inevitably shift toward overcapacity.
Short-term performance may be masking the inherent volatility of the memory cycle, and the current valuation may be overly optimistic regarding the permanence of these margins. Investors should remain cautious about the potential for rapid inventory write-downs should the current AI-driven demand environment experience a sudden cooling.
Quick answers to the most common questions about buying MU stock.
For fiscal year 2025, Micron Technology, Inc. (MU) reported total revenue of $37.38B. This represents a 923.0% increase compared to $3.65B in 1996.
Micron Technology, Inc. (MU) is profitable, generating $8.54B in net income for the fiscal year ending 2025 with a net profit margin of 22.8%.
Micron Technology, Inc. (MU) reported an operating income of $9.87B, resulting in an operating profit margin of 26.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Micron Technology, Inc. (MU) generated $14.87B in gross profit for the year, representing a gross profit margin of 39.8%. This demonstrates the company's core pricing power and production efficiency.