Micron Technology Inc.

Q3 results: record profitability and demand tightness - Micron delivered exceptional fiscal Q3 results exceeding the high end of guidance: revenue $41.5B (+74% sequential, +346% YoY), gross margin 84.9% (+10 pts sequential; new record), and non-GAAP EPS $25.11 (+106% sequential). - DRAM: $31.3B revenue ( +343% YoY, 76% of total revenue ); sequential DRAM revenue +67% with bit shipments low-single-digit up and prices up low-60%. - NAND: $9.9B revenue ( +361% YoY, 24% of total revenue ); sequential revenue +99% with bit shipments mid-single-digit up and prices up mid-80%.

Strategic Customer Agreements (SCAs): the biggest “business model” shift - Micron has now signed 16 Strategic Customer Agreements across data center + auto, expected to fundamentally transform the business model. - Terms: typically 5-year (calendar 2026–2030); automotive generally 3-year. - Coverage: represents ~20% of DRAM volume and ~1/3 of NAND volume over the period; when fully executed, Micron expects ~half or more of company revenue under SCAs. - Take-or-pay + pricing floors/ceilings designed to preserve profitability in tight supply: - ~40% of revenue expected to be under agreements with fixed or ceiling-priced terms (ceilings near current CQ2; floors protect margins). - 14 of 16 SCAs have ~$100B cumulative revenue at minimum pricing; this implies a *floor-price* revenue level far below expected actual revenue, but with high floor gross margins (above prior peak cycle levels). - RPO disclosed (accounting metric): over $5B RPO at end of fiscal Q3, and ~$100B for SCAs signed so far (including after Q3) based on conservative minimum volume × minimum price; RPO is not total future revenue and should not be treated as revenue guarantee.

Cash/deposits and capital discipline: strong liquidity, but deposits are not free cashflow - Under SCAs signed so far, Micron expects $22B of cash deposits + financial commitments, of which ~$18B are cash deposits. - Deposits are held by Micron during contract performance, show up in financing cash flows, do not affect free cash flow, and are expected to be returned to customers over time (weighted to the back half of agreements). - Management emphasized deposits are unrestricted, supporting flexibility, but customers will receive them back—so they’re not a substitute for dividends/buybacks.