MU · 10-Q · 2026Q2 · Full report

Strategic Customer Agreements

MICRON TECHNOLOGY INC · 2026-06-25 · Importance 71 · Surprise 60 · In source text

During the third and fourth quarters of fiscal 2026, Micron entered into strategic customer agreements and expects additional agreements as customers seek multi-year access to advanced memory and supply. The agreements are generally take-or-pay commitments with specified volumes, while pricing is fixed or subject to minimum and maximum bands. Agreements concluded to date are expected to generate $22 billion of cash deposits and related financial commitments, including approximately $18 billion in cash deposits. Management expects price-band agreements to produce gross margins well above prior peak quarterly margins and improve performance predictability.

Key facts

• Micron expects to receive cash deposits and related financial commitments of $22 billion for strategic customer agreements concluded to date, approximately $18 billion of which will be in the form of cash deposits. source
• Micron expects gross margins from strategic customer agreements with price bands, even at floor pricing levels, to yield gross margins well above Micron's peak quarterly margins in any past cycle. source
• Strategic customer agreements are structured as take-or-pay agreements with binding commitments for specific volumes over multi-year terms; largest agreements generally have a ceiling price approximating market price in second calendar quarter of 2026 and a floor price through the term. source

Impact estimates