Micron Technology (MU) Q2 2026 earnings summary

Executive summary

• Fiscal Q2 2026 delivered record revenue, gross margin, EPS, and free cash flow, with revenue nearly tripling year-over-year and all business units reaching new highs, driven by AI demand and tight supply.

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

• AI-driven demand, structural supply constraints, and strong execution across DRAM, NAND, and HBM segments are driving performance.

Financial highlights

• Fiscal Q2 revenue was $23.9B, up 75% sequentially and 196% year-over-year, marking the fourth consecutive quarterly record.

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

• Gross margin was 75%, up 18 points sequentially and nearly double year-over-year, a company record.

• Operating income was $16.5B, with a 69% margin, up 22 points sequentially and 44 points year-over-year.

• Non-GAAP EPS was $12.20, up 155% sequentially and 682% year-over-year.

• Free cash flow was $6.9B, a quarterly record, with $11.9B in operating cash flow and $5.0B in CapEx.

Outlook and guidance

• Fiscal Q3 revenue guidance is $33.5B ± $750M, with gross margin expected at 81% and EPS at $19.15 ± $0.40.

• Fiscal 2026 capex projected above $25B, with a meaningful step up in fiscal 2027 to support HBM and DRAM investments.

• Fiscal Q3 capex projected at ~$7B, with higher free cash flow expected.

• Tax rate for fiscal Q3 and full year 2026 expected around 15.1%.