Micron Technology (MU) Q2 2026 Post Call earnings summary

Executive summary

• Fiscal Q2 2026 delivered record revenue, gross margin, EPS, and free cash flow, with revenue reaching $23.86B, up 196% year-over-year and 75% sequentially, driven by robust DRAM and NAND demand, especially from AI and data centers, outpacing supply.

• Board approved a 30% increase in the quarterly dividend, reflecting confidence in sustained business strength.

• Growth fueled by AI-driven demand, structural supply constraints, and strong execution, with all business units reaching new highs.

• Strategic customer agreements, including the first five-year SCA, enhance long-term business visibility.

• Industry-wide cleanroom and capacity constraints are expected to persist until at least 2028, with new capacity coming online only in the second half of that year.

Financial highlights

• Q2 2026 revenue: $23.86B, up 75% sequentially and 196% year-over-year; net income: $13.79B; diluted EPS: $12.07 (GAAP), $12.20 (non-GAAP); gross margin: 74.4%.

• DRAM revenue: $18.8B (79% of total), up 207% year-over-year; NAND revenue: $5.0B (21% of total), up 169% year-over-year.

• Operating income for Q2 2026 was $16.14B; adjusted free cash flow: $6.9B; operating cash flow: $11.9B.

• CapEx outlook for FY 2026 raised to over $25B, up from $20B previously.

• All business units posted record revenues and significant margin expansion.

Outlook and guidance

• Q3 2026 revenue guidance: $33.5B ± $750M; gross margin expected at approximately 81%; diluted EPS: $19.15 ± $0.40 (non-GAAP).

• Expectation of continued tight supply conditions for both DRAM and NAND beyond 2026, with meaningful new supply only in 2028.

• CapEx for fiscal 2027 projected to increase meaningfully for HBM and DRAM investments.

• Opex projected to rise in fiscal 2027 to support increased R&D for long-term opportunities.

• No new long-term bit growth numbers provided, but current robust growth is supply-constrained.