Micron Technology just posted a data center gross margin of 87% in its fiscal third quarter of 2026, reported on June 24. That’s a 12 percentage-point jump from the previous quarter, and a number that would make most SaaS companies blush.
The company’s Compute and Data Center Business Unit (CDBU) generated more than $25 billion in quarterly revenue, putting it on an annualized run rate north of $100 billion.
What’s driving the margins
Micron’s high-bandwidth memory (HBM), DRAM, and NAND products sit at the heart of AI accelerators and data center servers. Every new GPU cluster that NVIDIA, AMD, or custom silicon shops deploy needs massive amounts of high-performance memory. Supply constraints, driven by long fabrication timelines and production prioritization toward HBM, have created a pricing environment that’s remarkably favorable for Micron.
Overall, the company posted GAAP gross margins of 84.6% and non-GAAP margins of 84.9% across all business units.
