Markets MU JUN 29, 2026

Micron posts $41.46B Q3, guides higher, after chip rout

MU revenue tripled YoY and EPS of $25.11 blew past the $20.83 consensus, capping a week in which memory and AI chip names shed 13%+ before the print.

BY HENLEY MARRAST · MARKETS DESK

Micron Technology reported fiscal Q3 revenue of $41.46 billion against a FactSet consensus of $35.75 billion, with non-GAAP EPS of $25.11 crushing the $20.83 estimate and GAAP net income landing at $28.24 billion. The print, delivered Wednesday after the close, arrived into a tape that had spent two sessions pricing the opposite outcome.

Revenue tripled from $9.30 billion a year ago and nearly doubled from the prior quarter’s $23.86 billion. The engine is no longer ambiguous. Micron’s Cloud Memory Business Unit, the segment housing HBM and AI-data-center DRAM, posted $13.77 billion in revenue at an 83% gross margin and 78% operating margin, up from $7.75 billion and 74% gross margin a quarter earlier. Cash and marketable investments closed at $30.2 billion. The board declared a $0.15 quarterly dividend payable July 21, a number that reads almost ironic against the operating numbers above it.

The setup mattered as much as the print. Monday saw Sandisk, Micron and Arm each plunge more than 10%, with Marvell, Western Digital, Texas Instruments and Qualcomm off roughly 9% and Nvidia down 4.15%. Tuesday extended it: Micron and Sandisk shed another 13%, and the VanEck Semiconductor ETF gave up 7%.

This was unusual market behavior for a name up more than 260% year-to-date and over 760% on a trailing-twelve-month basis. Wedbush’s Dan Ives flagged the tension going in: “with Micron set to report earnings this Wed there is some added nervousness on the important memory chip trade.” JPMorgan analysts echoed the concern. MU closed down just 0.3% Wednesday before surging after hours on the print.

Then Friday undid the catharsis. Micron fell more than 5%, Sandisk dropped 10%, Marvell shed 5%, Arm slid nearly 4% and Intel lost 3%, with Nvidia and Alphabet down at least 8% on the month as AI infrastructure cost questions resurfaced. The fundamentals printed at a generational high. The tape kept selling them anyway. That gap, between what the cycle is earning and what the market will pay for it, is the actual story.

Sources

About the author

Henley Marrast

MARKETS DESK

Henley Marrast covers AI-equity flow, accelerator demand, and earnings prints for AI Sheet Report. She leads coverage of the public AI complex from the New York markets desk, with a focus on the daily tape and quarterly results. She has been writing about technology markets for several years.