MICRON TECHNOLOGY INC

A quarterly SEC filing is unavailable for this period.

• Revenue reached $41.5B in Q3 (up 74% QoQ, 346% YoY) on AI-driven demand outpacing industry supply; DRAM ASPs rose in the low-60% range and NAND ASPs in the mid-80% range QoQ, with bit shipments up low- to mid-single digits. Consolidated gross margin expanded to 85% (vs. 74% prior quarter and 38% year-ago). CMBU revenue grew 307% YoY to $13.8B, with all four segments posting operating margins above 75%.
• Micron entered into multi-year strategic customer agreements (take-or-pay with binding volume commitments and fixed or banded pricing) in Q3 and expects to continue executing them in Q4. Remaining performance obligations totaled approximately $5B at quarter-end, and the company expects $22B in customer cash deposits and related financial commitments from agreements concluded to date (~$18B in cash deposits). Management stated gross margins under these agreements at floor pricing would exceed peak quarterly margins in any prior cycle, characterizing the agreements as accelerating a transformation of its business model toward greater predictability.
• Completed the $1.8B acquisition of a wafer fabrication facility in Tongluo, Taiwan from Powerchip (March 2026), with meaningful product shipments expected from mid-calendar 2027 and construction of a second cleanroom already underway. Broke ground on the first Clay, New York fab in January 2026 (supply targeted for 2030+). In Singapore, finalized government incentive arrangements for manufacturing and R&D expansion (Nov 2025 and Apr 2026), with an HBM advanced packaging facility (ground broken Jan 2025, expansion beginning H1 2027) and an additional NAND wafer fab (ground broken Jan 2026, operational H2 2028). The Gujarat, India assembly-and-test facility commenced commercial shipments and is ramping in 2026. Full-year 2026 capex is estimated at ~$27B net of government incentives.
• Prepaid $8.5B of debt in the first nine months of 2026 (including full repayment of the 2028 Notes, 2029 Term Loan A, 2029 A/B Notes, and 2030 Notes, plus partial prepayments of 2031–2035 notes), recognizing a $323M prepayment loss in Q3. On May 6, 2026, reduced the revolving credit facility from $3.5B to $2.0B (no amounts drawn). Total debt carrying value declined to $5.7B from $14.6B at fiscal year-end 2025. The quarterly dividend was raised to $0.15/share from $0.115 in prior quarters.
• Held CHIPS Act direct funding agreements for up to $6.1B covering two Idaho fabs and up to four New York fabs, plus a $275M agreement for the Manassas, Virginia fab modernization (total CHIPS grants up to $6.4B), along with a 35% investment tax credit. A non-binding term sheet with New York State provides up to $5.5B in additional funding for the four-fab Clay site. On February 27, 2026, Micron executed Waiver and Amendment No. 3 to both the Idaho and New York CHIPS direct funding agreements (filed as exhibits).
• Subsequent to May 28, 2026, Micron purchased non-marketable equity securities in a leading AI company (amount not disclosed). The company also disclosed that the One Big Beautiful Bill Act (enacted July 2025) and Singapore's Pillar Two minimum tax (effective 2026) are materially impacting its tax position, with a $5.8B noncurrent income tax payable recorded at quarter-end versus $648M a year earlier.

• Q2 FY26 revenue reached $23.86B (up 196% YoY, 75% QoQ), with DRAM ASPs up mid-110% and NAND ASPs up >100% YoY, while bit shipments grew mid-40% (DRAM) and ~30% (NAND). Consolidated gross margin jumped to 74% from 37% a year prior. Micron attributes the surge to AI-driven data center demand outpacing both its and the industry's supply, leading to supply allocation decisions that may impact certain customers and end markets. All four business units saw operating margins expand sharply (e.g., MCBU from 1% to 76%, CDBU from 33% to 67%).
• Multiple manufacturing milestones completed or announced: Completed acquisition of a Powerchip wafer fab in Tongluo, Taiwan for $1.8B in cash installments (closed March 15, 2026), with meaningful product shipments expected from the existing fab beginning 2028 and a second cleanroom to break ground by end of 2026. Broke ground in January 2026 on the first of up to four New York DRAM fabs in Clay, NY (supply targeted 2030+), and on an advanced NAND wafer fab in Singapore (operational H2 2028). India assembly/test facility in Gujarat commenced commercial shipments. Plans include starting construction of a second Idaho fab in 2026 (operational end of 2028), a second cleanroom at the Taiwan site, and modernizing Hiroshima, Japan for future DRAM and AI memory nodes.
• FY2026 capital expenditures are estimated above $25B net of government incentives; H1 2026 PP&E spending was $11.78B. Total CHIPS Act direct funding stands at up to $6.4B (Idaho and New York fabs plus Virginia fab modernization), supplemented by a 35% investment tax credit and a non-binding New York state term sheet for up to $5.5B over 20+ years. A Singapore government incentive for facility enhancement and modernization was finalized in November 2025.
• Singapore enacted legislation implementing the 15% Pillar Two minimum tax effective for Micron in 2026, which largely offsets the benefit of Singapore tax incentive arrangements and drove the effective tax rate from 10.1% to 14.7% year-over-year. The One Big Beautiful Bill Act, enacted July 2025, introduces broad U.S. tax changes effective for Micron beginning in 2026–2027; the aggregate impact remains uncertain.
• YMTC filed a series of new patent infringement complaints in October 2025 across E.D. Texas, the English High Court, the Unified Patent Court (Düsseldorf), and Munich Regional Court, targeting 3D NAND and LPDRAM products with claims seeking injunctions and damages. Separately, a January 2026 petition in the New York Supreme Court challenges OCIDA's environmental review and permits for the planned Clay, NY fab complex, seeking to annul all related approvals.

• AI-driven demand is outpacing industry supply, prompting Micron to shift more DRAM production to HBM and high-capacity data center modules. CMBU revenue doubled YoY to $5.28B (55% segment operating margin), and total revenue rose 57% to $13.64B, with DRAM ASPs up a mid-30s% range and DRAM bit shipments up a mid-20s% range versus Q1 FY2025.
• U.S. manufacturing expansion progressed: the first Boise, Idaho DRAM fab (construction began Oct 2023) projects first wafer output in mid-calendar 2027; a second Idaho fab is planned to begin construction in 2026 and be operational by end of 2028; the first of up to four Clay, New York fabs is targeted for ground-breaking in early calendar 2026 with supply in 2030+. CHIPS Act direct funding totals up to $6.1B (amended June 2025 to add the second Idaho fab) plus $275M for the Manassas, Virginia fab expansion, alongside a 35% investment tax credit and a non-binding NY State term sheet for up to $5.5B.
• Global capacity investments advanced: the Gujarat, India assembly-and-test facility initiated pilot production with a 2026 ramp; the Hiroshima, Japan facility is being modernized for future DRAM nodes and AI memory; a Singapore HBM advanced packaging facility (ground already broken) will meaningfully expand total advanced packaging capacity beginning calendar 2027; and Taiwan production capacity is being modernized for DRAM and HBM. On November 19, 2025, Micron finalized a government incentive arrangement for Singapore facility enhancement and modernization covering qualified capital spending and labor costs.
• Micron estimates fiscal 2026 capital expenditures at approximately $20B (net of government incentive proceeds), weighted to the second half of the year. Q1 FY2026 PP&E spending was $5.39B, partially offset by $878M in government incentive proceeds received.
• In October 2025, Micron prepaid in full its 2028 Notes, 2029 B Notes, and 2029 Term Loan A (combined principal reduction ~$2.69B, cash outlay ~$2.82B), recognizing a $130M loss in other non-operating expense; total debt carrying value declined from $14.58B to $11.76B. The $3.5B revolving credit facility remained undrawn.
• Customer concentration increased: one customer (primarily in CMBU) accounted for 17% of Q1 revenue versus 13% a year earlier, reflecting the AI-driven data center demand shift.

• In Q4 2025, Micron completed a strategic reorganization into four reportable segments—Cloud Memory (CMBU), Core Data Center (CDBU), Mobile and Client (MCBU), and Automotive and Embedded (AEBU)—with prior periods retrospectively adjusted. The reorganization centers each unit on a specific market segment with AI growth as a cross-cutting theme. (Annual context, FY2025:) Micron began shipping the industry's first 1γ DRAM node incorporating EUV lithography; HBM3E 12-high (36GB) represented the majority of HBM shipments in Q4 2025; HBM4 36GB 12-high samples were delivered to multiple key customers (volume production targeted calendar 2026); 9550-series and 6550 ION data-center SSDs entered qualification and shipping; and LPDDR5X qualification samples on the 1γ node began shipping for flagship smartphones.
• On June 11, 2025 (Q4), Micron amended its CHIPS Act direct funding agreements to add a second leading-edge DRAM fab in Boise, Idaho, and signed a new agreement for up to $275 million to expand and modernize its Manassas, Virginia fab, bringing total CHIPS Act direct funding to up to $6.4 billion. The One Big Beautiful Bill Act, enacted July 4, 2025 (Q4), raised the CHIPS Act investment tax credit from 25% to 35% for qualified U.S. investments placed into service after December 31, 2025. (Annual/planned context:) First DRAM wafer output from the Idaho fab is projected for H2 calendar 2027; the New York plan envisions up to four fabs over 20+ years; an HBM advanced-packaging facility in Singapore broke ground to expand capacity beginning calendar 2027; and the Hiroshima, Japan site is being modernized for EUV-based DRAM production. FY2025 capex was $15.86 billion (net of $2.0 billion government-incentive proceeds); Q1 2026 capex is guided at approximately $4.5 billion per quarter.
• (Annual context, FY2025:) Micron shifted DRAM supply toward the data center and hyperscale cloud to meet AI-driven demand, driving CMBU revenue up 257% to $13.5 billion and total revenue up 49% to $37.4 billion; consolidated gross margin expanded to 40% from 22%. One customer accounted for 17% of FY2025 revenue, primarily in CMBU. (Q4-specific:) No shares were repurchased under the $10 billion authorization during Q4; $2.81 billion remained available, with repurchases constrained by CHIPS Act agreement terms for the first two years of the five-year award period.
• In Q4 2025, several legal and regulatory matters advanced: Netlist filed three additional patent-infringement complaints (May and July 2025) asserting claims against Micron's DRAM, DIMM, and HBM products, and Micron filed a notice of appeal (July 9, 2025) against the prior $445 million jury verdict on two memory-module patents. YMTC filed a Lanham Act complaint (June 7, 2025) alleging false advertising and unfair competition regarding 3D NAND products. A securities class-action amended complaint (May 23, 2025) and two consolidated shareholder derivative suits allege misleading statements about industry supply/demand dynamics from March 2023 through December 2024. Subsequent to period-end, Micron finalized a Japanese government incentive arrangement for up to 500 billion yen (~$3.4 billion) to modernize the Hiroshima fab.