Micron CEO bets fiscal 2027 tops a record 2026, raises capital spending

Sanjay Mehrotra closed out fiscal 2026 with results he described as records across the board, then immediately raised the bar, telling investors that fiscal 2027 will be even stronger. That forward guidance, delivered at the Q4 earnings call, was paired with a commitment to increase capital spending on memory technology, products, and manufacturing rather than harvest margins from a strong cycle.

The rationale centers on artificial intelligence, which Mehrotra is now framing as a transition toward what he calls Super Intelligence. His argument is that memory acts as a competitive differentiator in that transition, one that determines how capable and cost-effective AI platforms can be for Micron's customers.

The detail that gives the outlook structural weight is the Strategic Customer Agreements Mehrotra cited. By locking in multi-year arrangements with key customers, Micron is pushing memory pricing power beyond the normal boom-and-bust cycle. The agreements, in his words, provide added confidence in the durability of Micron's financial performance, which is a signal that at least some of fiscal 2027's revenue base is already contracted.

Shares were up 0.83% since the quote was published, a modest immediate reaction that reflects investors waiting to see whether the capital spending increase compresses margins before the revenue uplift arrives. The tension between rising investment and record-level profitability is the central dynamic to keep an eye on as fiscal 2027 guidance firms up over coming quarters.