Micron Technology (MU) Q2 2026 earnings summary

Executive summary

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

• Fiscal Q3 guidance projects further records in revenue, gross margin, EPS, and free cash flow, with single-quarter revenue guidance exceeding any prior full-year revenue.

• AI-driven demand, structural supply constraints, and strong execution are driving performance, with memory and storage positioned as strategic assets in the AI era.

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

Financial highlights

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

• DRAM revenue reached $18.8B (79% of total), up 207% year-over-year; NAND revenue was $5B (21% of total), up 169% year-over-year.

• Gross margin was 74.9%, up from 56% sequentially and nearly double year-over-year, a company record.

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

• Free cash flow was $6.9B, a quarterly record, with $11.9B in operating cash flow and $5B in CapEx.

Outlook and guidance

• Fiscal Q3 revenue expected at $33.5B ± $750M, gross margin ~81%, and record EPS of $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%.