Micron Technology, Inc.

Micron did not provide full quarter-wide revenue, EPS, or gross margin figures in this transcript. Management did say FQ3 enterprise SSD revenue was $5 billion and total data center revenue was $25 billion. For capital spending, Mark Murphy said fiscal 2026 CapEx is now around $27 billion, with about $10 billion in the current quarter, and fiscal 2027 CapEx will be substantially higher and above the low- to mid-40% of revenue level some investors inferred. On cash return, Murphy said the company will hold appropriate excess cash, intends to grow the dividend over time, and that the principal capital return will be share repurchase, with an increase in capital return planned from December 9.

Sumit Sadana framed the quarter as evidence that Micron’s business model is being transformed by AI-driven memory demand and strategic customer agreements. He emphasized that demand for HBM3E, HBM4, and even ahead of HBM4E qualifications is far above supply, and that the same supply shortage applies to non-HBM DRAM as well. He also highlighted Micron’s focus on differentiated, hard-to-manufacture products across HBM, LPDRAM, SOCAMM, and high-end NAND rather than chasing commodity mix.

Mark Murphy said Micron is generating record cash flow and expects cash flow growth to increase in Q4, helped by technology products, manufacturing performance, and debt reduction over the past year. He said the company will keep enough cash to invest through all seasons, but excess cash will ultimately be returned mainly through buybacks; he also referenced a recent 30% dividend increase. On the cost side, he said startup costs from new fabs will begin to show more meaningfully in Q4 and the first half of next year, with 2027 seeing roughly $100 million to $200 million per quarter of effect, though the incremental bits should outweigh those costs.

Analysts focused on whether Micron could convert the supply tightness into aggressive share repurchases, and Murphy answered that capital return will be buyback-led but paced by cash needs and strategic flexibility. Questions also centered on the SCAs: management said the contracts cannot be canceled, are take-or-pay, often run five years, and include price floors/ceilings plus cash deposits and letters of credit. On demand, Sadana said HBM supply is far below customer needs through 2027 and 2028, while customer concern is especially intense in DRAM; he added that automotive and other critical end markets require more tailored fulfillment decisions.