Micron (MU) Q4 FY2026 Earnings Call: Memory Supply Tight Through 2028
Source Tradingkey
Key Takeaways
- Micron said more than 75% of its fiscal 2027 shipments are committed, allowing customer allocation discussions to shift toward 2028.
- Management expects memory supply-demand conditions to remain tight through 2028, driven by AI demand, cleanroom constraints, diminishing node-transition gains and HBM’s higher trade ratios.
- Micron signed 10 new strategic customer agreements, or SCAs, during the quarter, bringing the total to 26 across DRAM and NAND.
- Calendar 2027 HBM pricing has increased significantly and will reset at the beginning of the year, helping narrow the profitability gap with conventional DRAM.
- Management expects margin expansion after fiscal Q1 2027 for the remainder of the year, supported by higher pricing and a more favorable product mix, partly offset by start-up costs.
- Most of the increase in fiscal 2027 construction capital expenditure will accelerate cleanroom availability in late calendar 2028 and beyond.
Key Financial Data
| Metric | Management commentary |
|---|---|
| Fiscal 2027 committed shipments | More than 75% |
| Strategic customer agreements | 26 in total, including 10 signed during the quarter |
| SCA pricing structure | About three-quarters of SCA revenue has a defined pricing framework; roughly one-quarter is subject to periodic negotiation or market-linked pricing |
| SCA bit-volume coverage | Around 35% overall, with DRAM somewhat below that level and NAND somewhat above it |
| Fiscal Q1 2027 bit growth | Single-digit sequential growth for both DRAM and NAND |
| Fiscal 2027 R&D increase | More than $1 billion year over year, excluding incentive compensation effects |
| Fiscal 2027 China exposure | Expected to decline to a single-digit percentage |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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