Strategic Customer Agreements reshape the revenue model. Micron signed 16 take-or-pay contracts with terms of three to five years, collectively committing approximately $100B in cumulative minimum revenue and $22B in upfront cash deposits.⁵ The agreements cover 20% of DRAM volume and one-third of NAND volume through 2030 and are uncancellable. Chief Business Officer Sumit Sadana described them as functioning as "take or pay" contracts with specific financial penalties for non-delivery, a structural change from Micron's prior spot-and-contract mixed model.

"Micron is investing at record levels in technology, products, and supply to address our customers' rapidly growing demand. We believe our multi-year Strategic Customer Agreements will significantly enhance the durability and predictability of Micron's strong financial performance."
— Sanjay Mehrotra, CEO, Q3 FY2026 Earnings Call, June 24, 2026⁴

HBM4 volume ramp at 2x the speed of HBM3E. Micron shipped over $1B in HBM4 revenue in Q3 FY2026, with volume ramp tracking twice as fast as the prior HBM3E 12-high generation.³ The company simultaneously reports HBM3E and HBM4 fully booked through calendar 2027, with demand extending into 2028. HBM market TAM projections were raised to exceed $100B by 2027, pulled forward one year from the prior 2028 forecast. CEO Sanjay Mehrotra stated Micron can currently fulfil only 50–67% of customer demand for HBM.⁸

Capital expenditure trajectory sharply elevated. FY2026 capex guidance was raised to approximately $27B, with Q4 FY2026 quarterly capex guided at roughly $10B. Management disclosed FY2027 capital spending will exceed the mid-$40B range, with the majority funding construction rather than immediate production capacity additions.⁴ For context, Micron's full-year FY2025 revenue was approximately $37.4B; FY2027 capex alone would nearly match it.

Data center annualized run rate crosses $100B. Total data center revenue in Q3 FY2026 exceeded $25B, the first quarter crossing that threshold, implying an annualized run rate above $100B.⁷ That includes $13.77B from the Cloud Memory Business Unit (83% gross margin) and $11.52B from the Core Data Center Business Unit (87% gross margin), with enterprise SSDs contributing $5B — 20% of total data center.⁴

Micron Q3 FY2026 Earnings: HBM Drives a 346% Revenue Surge and a $50B Q4 Outlook

The Power Delivery Gap