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Micron reports nearly 75% gross margin and projects 81% for the next quarter amid AI demand
Tuesday, March 17, 2026 at 10:00 PM
Micron reported a gross margin of nearly 75% for the previous quarter and issued guidance for an 81% gross margin for the upcoming quarter, highlighting the pricing power held by memory suppliers in the current AI infrastructure cycle.
Context
On March 18, 2026, Micron Technology reported record-breaking fiscal Q2 2026 results, including a consolidated gross margin of 75%, an 18-percentage-point sequential increase. Revenue nearly tripled year-over-year to $23.9 billion, driven by an unprecedented surge in demand for HBM, DRAM, and NAND used in AI data centers. CEO Sanjay Mehrotra stated that AI has "fundamentally recast memory as a defining strategic asset in the AI era," noting that the company's results and outlook are the outcome of structural supply constraints and exceptional execution.
Looking ahead, Micron issued a non-GAAP gross margin guidance of 81% (plus or minus 1%) for the next quarter, reflecting a significant shift in market power toward memory suppliers. This pricing leverage stems from a global memory shortage where high-margin AI components are prioritizing wafer allocation over consumer electronics. The company also announced a 30% increase in its quarterly dividend, signaling confidence in the sustained profitability of the current hardware super-cycle as DRAM prices have surged as much as 60% in recent months.
Sources (6)
Micron Technology, Inc. Reports Results for the First Quarter of Fiscal 2025 | Micron TechnologyEarnings call transcript: Micron Technology Q2 2026 beats forecasts with strong growth By Investing.comIDC - Global Memory Shortage Crisis: Market Analysis and the Potential Impact on the Smartphone and PC Markets in 2026 DRAM Cannot Keep Up With AI Demand - EE TimesAI memory squeeze + glass substrate scarcity | SourceabilityHow AI Broke the Memory Market: Inside the 2024–2026 DRAM & NAND Crunch
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