Micron Guided to an 86% Gross Margin. No Memory Maker Has Ever Held a Number Like That for Long.
The last time the memory specialist set a margin record, the number fell by more than half within a year.
Overview
When Micron Technology (NASDAQ:MU) issued its fiscal fourth-quarter outlook in late June, one number stood out even in a report full of them: a gross margin of about 86%, on revenue of $50 billion, plus or minus $1 billion. Put another way, management expects to spend only about 14 cents of each sales dollar making the chips it sells -- in an industry where margins have always swung violently with memory prices.
The guided quarter is already over. Micron's fiscal fourth quarter of 2026 ended in early September, and the company reports the results on Wednesday, Sept. 30, after the market closes.
Details
How long can a memory maker keep a margin like that? The company's own reported history offers a blunt answer.
Source
Originally published at www.fool.com.