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Micron Technology (MU) expects approximately 40% of its revenue to be subject to fixed prices or ceilings near calendar Q2 2026 market levels once all planned deals are signed.
This cap on pricing is significant because higher prices were the primary driver behind the company's record gross margin in fiscal Q3 2026.
While these strategic customer agreements typically span five years and include price floors, the ceiling on existing products represents the key constraint for revenue growth.
In fiscal Q3 2026, Micron's DRAM prices increased in the low 60s percentage range from the previous quarter, while bit shipments grew only in the low single digits. DRAM accounted for 76% of total revenue.
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