Micron Poised to Outpace Microsoft's Fiscal 2027 Earnings

Micron Technology is on track to break records in its fiscal fourth quarter of 2026, with management guiding to earnings of $30.73 per diluted share on a GAAP basis, resulting in approximately $35 billion of profit.

This would be roughly four times what the company earned in its entire prior fiscal year and marks a significant increase from the previous quarter's net income of $28.2 billion.

The key driver behind Micron's revenue growth is not an increase in shipment volumes, but rather higher average selling prices for DRAM, which rose by over 60% in the low range compared to the prior quarter.

This trend indicates that Micron is benefiting from its ability to sell memory at significantly higher prices, resulting in a gross margin of 84.6% in the fiscal third quarter, up from 37.7% in the prior-year quarter.