Micron locks in 16 AI‑driven memory customers with five‑year non‑cancelable agreements

Micron Technology reported a 1,398% jump in third‑quarter FY2026 net profit to $28.2 billion, with revenue of $41.456 billion and an operating margin of 80.4%. The company said it has signed 16 non‑cancelable, five‑year Strategic Customer Agreements (SCA) covering LPDDR6, DDR6, HBM and NAND products. Under the take‑or‑pay contracts, customers must commit to annual purchase volumes, pre‑pay cash deposits exceeding $22 billion (about $18 billion in cash) and accept price floors that keep product pricing above recent market lows.

Micron’s executive vice president Sumit Sadana described the SCAs as a way to break the traditional memory‑industry cyclical pattern by securing predictable revenue through long‑term pricing guarantees that run through 2030. The agreements come as AI‑driven data‑center demand keeps DRAM and NAND supply extremely tight, allowing Micron and rivals SK Hynix and Samsung to post quarterly operating profits approaching $100 billion—well above Nvidia’s quarterly profit. The move is expected to sustain high memory prices and bolster Micron’s financial performance for years to come.