Micron Technology ended fiscal 2026 with revenue of $133.19 billion, up from $37.38 billion in 2025 and $25.11 billion in 2024, as AI-related demand tightened supply and pushed pricing sharply higher across both DRAM and NAND.
The company said 2026 revenue rose 256% year over year, driven by a 252% increase in DRAM sales and a 274% increase in NAND sales. DRAM growth reflected an approximate 180% jump in average selling prices and a mid-20% increase in bit shipments. NAND growth reflected an approximate 200% increase in average selling prices and a mid-20% increase in bit shipments.
Gross margin widened to 81% in 2026 from 40% in 2025 and 22% in 2024. Gross profit reached $107.50 billion in 2026, compared with $14.87 billion in 2025 and $5.61 billion in 2024. Micron said the 2026 margin expansion came from higher average selling prices, favorable mix, and manufacturing cost reductions.
Operating income surged to $99.34 billion in 2026 from $9.77 billion in 2025 and $1.30 billion in 2024. Net income climbed to $84.97 billion, versus $8.54 billion and $778 million in the prior two years.
By business unit, 2026 revenue was led by: CMBU: $43.09 billion, up 219% CDBU: $37.59 billion, up 420% MCBU: $36.60 billion, up 209% AEBU: $15.89 billion, up 234%
Operating income by unit in 2026 was: CMBU: $31.23 billion CDBU: $29.54 billion MCBU: $29.21 billion AEBU: $11.22 billion
Operating margins by unit were exceptionally high: CMBU: 72% CDBU: 79% MCBU: 80% AEBU: 71%
Research and development expense increased to $5.65 billion in 2026 from $3.80 billion in 2025, a 49% increase, driven by higher employee compensation, including variable pay, and more development and pre-qualification wafers. SG&A rose to $1.95 billion from $1.21 billion, up 62%, mainly from employee compensation and community investments.
Interest income, net, improved to $978 million in 2026 from $19 million in 2025, helped by higher cash and investment balances and lower debt. Other non-operating expense was $647 million in 2026, compared with $135 million in 2025.
Income before taxes was $99.67 billion in 2026, and the income tax provision was $14.76 billion, producing an effective tax rate of 14.8%. In 2025, the effective tax rate was 11.6% on pretax income of $9.65 billion. Micron said Singapore’s implementation of the 15% minimum tax Pillar Two rules largely offset the benefit from its Singapore tax incentive arrangements.
Cash and marketable investments totaled $73.45 billion at September 3, 2026, up from $11.94 billion a year earlier. Micron said $5.12 billion of that balance was held by foreign subsidiaries.
The company said it entered into strategic customer agreements in the third and fourth quarters of 2026. These are structured as take-or-pay contracts with binding multi-year volume commitments, and pricing is either fixed or periodically negotiated, with most agreements including minimum and maximum price bands. Micron said it expects gross margins from agreements with price bands to remain meaningfully above its peak quarterly margins in any past cycle, even at floor pricing.
For 2025, revenue rose 49% from 2024, with DRAM sales up 62% and NAND sales up 18%. Gross margin improved to 40% from 22%, operating income rose to $9.77 billion, and net income increased to $8.54 billion. As a result of these announcements, the company's shares have moved -4.79% on the market, and are now trading at a price of $1035.84. If you want to know more, read the company's complete 10-K report here.
