Micron Posts Record $41.5B Quarter, Gross Margin Hits ~85%, Stock Surges ~14% After Hours

Micron Technology (MU) reported fiscal Q3 2026 results (quarter ended May) after the close on June 24. Revenue of $41.46B set an all-time company record, while non-GAAP EPS, gross margin, and Q4 guidance all landed well ahead of Wall Street expectations. The board also declared a quarterly dividend. According to TheStreet, shares jumped as much as ~14% in after-hours trading after closing the regular session down slightly at roughly $1,048 (sources vary between $1,047 and $1,049).^[TheStreet]

Q3 Revenue and Earnings

Micron called the quarter a "record" in its press release. Key financials:

• Revenue of $41.46B, an all-time single-quarter record^{[TradingView]}; the analyst consensus had been ~$35.8B
• GAAP net income of $28.24B; GAAP diluted EPS of $24.67
• Non-GAAP net income of $28.86B; non-GAAP diluted EPS of $25.11, beating the ~$20.20 consensus^[TheStreet]
• GAAP gross margin of ~84.6%, vs. 37.7% a year ago^{[TradingView]}; Investing.com, citing the company's earnings slides, rounded the figure to ~85%^{[Investing.com]}
• Operating cash flow of $25.39B; adjusted free cash flow of $18.30B

Per Investing.com, Micron attributed the sharp margin expansion to stronger pricing power and higher volumes across its product lineup.^{[Investing.com]}

Q4 Guidance and Dividend

Micron's fiscal Q4 2026 guidance came in above analyst expectations across the board:

• Revenue guidance of ~$50B (±$1B), vs. the ~$43.2B analyst consensus^[StockTitan]
• Non-GAAP EPS guidance of ~$31.00 (±$1.00)
• GAAP gross margin guidance of ~86%

On the dividend, Micron declared a quarterly cash dividend of $0.15 per share, payable July 21, 2026. Worth noting: this rate was already raised ~30% by the board back in March 2026 — the current declaration is not a new increase.^{[Yahoo Finance]}

HBM and Data Center Capacity

Micron disclosed several AI-related HBM updates in its earnings materials:

• HBM4 has entered high-volume production for a key customer
• Next-generation HBM4E is in development, targeting mass production in 2027
• HBM capacity is "fully booked" through 2026

All HBM and data center figures above come directly from Micron's earnings release and press statements.^[StockTitan]

After-Hours Price Action and Analyst Price Targets

MU closed the June 24 regular session down slightly at roughly $1,048 (sources vary between $1,047 and $1,049, a decline of about 0.3%–0.4%), then surged as much as ~14% in after-hours trading to around $1,200 on the earnings beat.^[TheStreet] As always, after-hours moves can swing throughout the session and don't necessarily predict next-day performance.

Several firms raised their price targets following the print. Based on analyst reactions compiled by TheStreet and Investing.com:

• UBS analyst Timothy Arcuri raised his target from $535 to $1,625 — the highest on Wall Street^[TheStreet]
• Deutsche Bank and TD Cowen both moved to $1,500; Morgan Stanley set $1,050, Raymond James $1,100
• Aletheia Capital raised its target from $650 to $1,600, maintaining a Buy rating

S&P Global data aggregating 43 analysts puts Micron's consensus rating at "Strong Buy" with an average price target of roughly $1,048.^[TheStreet]

Context and What to Watch

Micron's blowout quarter came after a rough stretch for semiconductors in June. According to CNBC and other outlets, the Philadelphia Semiconductor Index logged a sharp single-day decline earlier in the week, with memory stocks among the hardest hit; sentiment heading into the print was mixed on supply-demand dynamics and memory pricing.^[CNBC]

Looking ahead, key items to watch include whether Micron can deliver on its ~$50B Q4 revenue guide, the pace of HBM capacity expansion heading into 2027, and the trajectory of spot and contract memory prices. All figures cited here are sourced from Micron's official filings and the media reports noted above; investors should refer to the company's official disclosures for definitive numbers.

This content is for informational purposes only and does not constitute investment advice, trading advice, or any guarantee of returns.