Memory-maker Micron says it is close to securing customers for all the high-bandwidth memory (HBM) it will make next year. Unsurprisingly, the company also predicts it will enjoy improved profit margins.
Speaking on the company’s Q4 2025 earnings call, CEO Sanjay Mehrotra said Micron now has six customers for its HBM products, almost all of which have agreed to “pricing agreements … for a vast majority of our HBM3E supply in calendar 2026.” The company is also “in active discussions with customers on the specifications and volumes for HBM4, and we expect to conclude agreements to sell out the remainder of our total HBM calendar 2026 supply in the coming months.”
Micron accounts for around a third of global DRAM and HBM production.
Mehrotra also said Micron finished its financial year with a bang by delivering revenue, gross margin and earnings higher than its previous guidance.
Q4 revenue landed at $11.32 billion, 46 percent higher than for the same quarter last year. Full year revenue grew 48 percent to $37.4 billion. Revenue in the company’s Cloud Memory Business unit, which includes HBM and other high-end products, grew 213 percent to reach $4.5 billion. Annual net income grew from FY 2024’s $778 million to $8.5 billion.
Gross margin in the Cloud Memory unit jumped from 49 percent to 59 percent.
The company sees margins rising for DDR memory too.
Chief business officer Sumit Sadana said Micron observes “extreme shortages at customers.”
“And of course, the margins have become dramatically better as this shortage has continued,” he added.
Micron predicts Q1 2026 revenue will be $12.5 billion, plus or minus $300 million.
The company also said it made $18 billion of capital expenditure in FY 2025 and expects to spend the same next year, well above the $13 billion it spent in FY 2024. “The vast majority of that is for DRAM, construction and equipment,” said CFO Mark Murphy, who said Micron sees plenty of upside in the DRAM market.
That level of capex is notable as it shows that it’s not just hyperscalers spending megabucks to catch the AI wave by building datacenters. Micron’s expanding margins also show that hyperscalers are willing to pay a premium for the memory AI applications need … which means your bills will also rise if you adopt cloudy AI infrastructure.
Some of Micron’s capex will go towards building manufacturing facilities in the US, an important effort as the company currently makes plenty of its products offshore. Sadana said the company’s forecasts are yet to factor in the effects of the USA’s new tariff policy. “We’ll have to respond to that when they are announced,” he said. ®