Micron Technology Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 18 March 2026: press release. Guidance figures: 6 new. The quarter’s numbers.

Key takeaways

Revenue rose to $23.86 billion: Revenue was $23.86 billion, compared with $13.64 billion in the prior quarter and $8.05 billion a year earlier. Source
GAAP EPS of $12.07 diluted: GAAP net income was $13.79 billion, or $12.07 per diluted share. Non-GAAP net income was $14.02 billion, or $12.20 per diluted share. Source
Cloud Memory revenue reached $7.75 billion: Cloud Memory revenue was $7,749 million, against $5,284 million in the prior quarter. Gross margin was 74% and operating margin 66%. Source
Gross margin rose to 74.4%: GAAP gross margin was 74.4% of revenue, against 56.0% in the prior quarter. Non-GAAP gross margin was 74.9%, against 56.8%. Source
Cash position reached $16.7 billion: Cash, marketable investments and restricted cash ended the quarter at $16.7 billion, against $12.0 billion in the prior quarter's release. Source
Adjusted free cash flow $6.9 billion: Adjusted free cash flow was $6.9 billion for the quarter, the company reported, against $3.9 billion in the prior quarter. Source
Global manufacturing footprint investment: Management said it is investing in its global manufacturing footprint. Property, plant and equipment rose to $51,408 million from $48,477 million. Source

“Micron set new records across revenue, gross margin, EPS, and free cash flow in fiscal Q2, driven by a strong demand environment, tight industry supply, and our strong execution, and we expect significant records again in fiscal Q3,”
Sanjay Mehrotra, Chairman, President and CEO of Micron Technology

Guidance

Area	Period	Figure	Against last quarter
Revenue Source	Fiscal Q3 2026	$33.5 billion ± $750 million	New
Gross margin Source	Fiscal Q3 2026	Approximately 81%	New
Operating expenses Source	Fiscal Q3 2026	Approximately $1.60 billion GAAP; approximately $1.40 billion non-GAAP	New
Diluted EPS Source	Fiscal Q3 2026	GAAP $18.90 ± $0.40; non-GAAP $19.15 ± $0.40	New
Diluted shares Source	Fiscal Q3 2026	Approximately 1.14 billion GAAP; approximately 1.15 billion non-GAAP	New
Non-GAAP adjustments Source	Fiscal Q3 2026	$289 million	New

What changed from last quarter

New guidance: Third-quarter 2026 guidance was given for revenue, gross margin, operating expenses and diluted EPS, on GAAP and non-GAAP bases. Source
New: Quarterly dividend raised 30%, to $0.15 per share from the $0.115 declared with the prior quarter's results. Source

Results and growth drivers

Revenue rose to $23.86 billion: Revenue was $23.86 billion, compared with $13.64 billion in the prior quarter and $8.05 billion a year earlier. Source
GAAP EPS of $12.07 diluted: GAAP net income was $13.79 billion, or $12.07 per diluted share. Non-GAAP net income was $14.02 billion, or $12.20 per diluted share. Source
Operating cash flow rose to $11.90 billion: Operating cash flow was $11.90 billion, against $8.41 billion in the prior quarter and $3.94 billion a year earlier. Source

Business unit results

Cloud Memory revenue reached $7.75 billion: Cloud Memory revenue was $7,749 million, against $5,284 million in the prior quarter. Gross margin was 74% and operating margin 66%. Source
Core Data Center revenue $5.69 billion: Core Data Center revenue was $5,687 million, against $2,379 million. Gross margin was 74%, up from 51%, and operating margin 67%, up from 37%. Source
Mobile and Client revenue $7.71 billion: Mobile and Client revenue was $7,711 million, against $4,255 million. Gross margin was 79% and operating margin 76%, against 54% and 47%. Source
Automotive and Embedded revenue $2.71 billion: Automotive and Embedded revenue was $2,708 million, against $1,720 million. Gross margin was 68% and operating margin 62%, against 45% and 36%. Source

“In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand.”
Sanjay Mehrotra, Chairman, President and CEO of Micron Technology

Margins and operating costs

Gross margin rose to 74.4%: GAAP gross margin was 74.4% of revenue, against 56.0% in the prior quarter. Non-GAAP gross margin was 74.9%, against 56.8%. Source
Operating margin reached 67.6%: GAAP operating margin was 67.6%, against 45.0% in the prior quarter. Non-GAAP operating margin was 69.0%, against 47.0%. Source
Operating expenses rose to $1.62 billion: GAAP operating expenses were $1,620 million, against $1,510 million. Non-GAAP operating expenses were $1,421 million, against $1,334 million. Source
Stock-based compensation the main adjustment: Operating income adjustments were stock-based compensation of $297 million and other items of $23 million, against $280 million and $3 million. Source

Receivables, inventories and payables

Receivables rose to $17.3 billion: Receivables were $17,314 million at February 26, 2026, against $10,184 million at November 27, 2025. Inventories were $8,267 million, against $8,205 million. Source
Six-month receivables use of cash: The six-month change in receivables was an $8,298 million use of operating cash, against a $338 million source in the prior-year period. Source
Payables and accrued expenses rose: Accounts payable and accrued expenses were $10,997 million, against $9,796 million at November 27, 2025. Source

Cash and free cash flow

Cash position reached $16.7 billion: Cash, marketable investments and restricted cash ended the quarter at $16.7 billion, against $12.0 billion in the prior quarter's release. Source
Capital expenditures, net, $5.0 billion: Investments in capital expenditures, net, were $5,004 million, against $4,505 million in the prior quarter. Source
Adjusted free cash flow $6.9 billion: Adjusted free cash flow was $6.9 billion for the quarter, the company reported, against $3.9 billion in the prior quarter. Source

Debt and shareholder returns

Long-term debt fell to $9.56 billion: Long-term debt was $9,557 million, against $11,187 million at November 27, 2025 and $14,017 million at August 28, 2025. Source
Six-month debt repayments of $4.6 billion: Six-month repayments of debt were $4,626 million, against $2,626 million a year earlier. Source
Repurchases and withholdings in six months: Six-month repurchases under the program were $650 million, plus $545 million withheld on employee equity awards. Source

Strategy and manufacturing investment

Global manufacturing footprint investment: Management said it is investing in its global manufacturing footprint. Property, plant and equipment rose to $51,408 million from $48,477 million. Source
Six-month capital spending rose: Six-month expenditures for property, plant and equipment were $11,776 million, against $7,261 million a year earlier. Source
Government incentive proceeds rose: Six-month proceeds from government incentives were $2,256 million, against $1,028 million a year earlier. Source

Coming up, as management said on 18 March 2026

Dividend payable April 15, 2026: The quarterly dividend is payable in cash on April 15, 2026, to shareholders of record as of March 30, 2026. Source
Prepared remarks and slides posted: Further business guidance detail is in prepared remarks and slides posted at investors.micron.com. Source

Figures management reported

Figure	Reported
Gross margin, GAAP / non-GAAP Source	74.4% / 74.9%
Cloud Memory business unit revenue Source	$7,749 million
Core Data Center business unit revenue Source	$5,687 million
Mobile and Client business unit revenue Source	$7,711 million
Automotive and Embedded business unit revenue Source	$2,708 million

Risks management discussed

External: Guidance excludes any business combinations, divestitures, restructuring or other significant transactions, whose timing depends on uncertain future events. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

MICRON TECHNOLOGY, INC. REPORTS RESULTS FOR THE

SECOND QUARTER OF FISCAL 2026

Record results and outlook reflect strategic value of memory in AI era

BOISE, Idaho, March 18, 2026 - Micron Technology, Inc. (Nasdaq: MU) today announced results for its second quarter of fiscal 2026, which ended February 26, 2026.

Fiscal Q2 2026 highlights

Revenue of $23.86 billion versus $13.64 billion for the prior quarter and $8.05 billion for the same period last year
GAAP net income of $13.79 billion, or $12.07 per diluted share
Non-GAAP net income of $14.02 billion, or $12.20 per diluted share
Operating cash flow of $11.90 billion versus $8.41 billion for the prior quarter and $3.94 billion for the same period last year

“Micron set new records across revenue, gross margin, EPS, and free cash flow in fiscal Q2, driven by a strong demand environment, tight industry supply, and our strong execution, and we expect significant records again in fiscal Q3,” said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology. “In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand. Reflecting confidence in the sustained strength of our business, our board has approved a 30% increase in our quarterly dividend.”

Quarterly Financial Results
(in millions, except per share amounts)	GAAP				Non-GAAP
FQ2-26	FQ1-26	FQ2-25		FQ2-26	FQ1-26	FQ2-25
Revenue	$23,860	$13,643	$8,053		$23,860	$13,643	$8,053
Gross margin	17,755	7,646	2,963		17,876	7,753	3,053
Percent of revenue	74.4%	56.0%	36.8%		74.9%	56.8%	37.9%
Operating expenses	1,620	1,510	1,190		1,421	1,334	1,046
Operating income	16,135	6,136	1,773		16,455	6,419	2,007
Percent of revenue	67.6%	45.0%	22.0%		69.0%	47.0%	24.9%
Net income	13,785	5,240	1,583		14,021	5,482	1,783
Diluted earnings per share (EPS)	12.07	4.60	1.41		12.20	4.78	1.56

For the second quarter of 2026, investments in capital expenditures, net were $5.0 billion and adjusted free cash flow was $6.9 billion. Micron ended the quarter with cash, marketable investments, and restricted cash of $16.7 billion. On March 18, 2026, Micron’s Board of Directors declared a quarterly dividend of $0.15 per share, payable in cash on April 15, 2026, to shareholders of record as of the close of business on March 30, 2026.

	FQ2-26	FQ1-26	FQ2-25
Quarterly Business Unit Financial Results
Cloud Memory Business Unit
Revenue	$7,749	$5,284	$2,947
Gross margin	74%	66%	55%
Operating margin	66%	55%	45%
Core Data Center Business Unit
Revenue	$5,687	$2,379	$1,830
Gross margin	74%	51%	47%
Operating margin	67%	37%	33%
Mobile and Client Business Unit
Revenue	$7,711	$4,255	$2,236
Gross margin	79%	54%	15%
Operating margin	76%	47%	1%
Automotive and Embedded Business Unit
Revenue	$2,708	$1,720	$1,034
Gross margin	68%	45%	21%
Operating margin	62%	36%	6%

Business Outlook

The following table presents Micron’s guidance for the third quarter of 2026:

FQ3-26	GAAP Outlook	Non-GAAP Outlook
Revenue	$33.5 billion ± $750 million	$33.5 billion ± $750 million
Gross margin	Approximately 81%	Approximately 81%
Operating expenses	Approximately $1.60 billion	Approximately $1.40 billion
Diluted earnings per share	$18.90 ± $0.40	$19.15 ± $0.40

Further information regarding Micron’s business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com.

Investor Webcast

Micron will host a conference call on Wednesday, March 18, 2026 at 2:30 p.m. Mountain Time to discuss its second quarter financial results and provide forward-looking guidance for its third quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call.

We encourage you to visit our website at micron.com throughout the quarter for the most current information on the company, including information on financial conferences that we may be attending. You can also follow us on LinkedIn, X (@MicronTech) and YouTube (@MicronTechnology).

About Micron Technology, Inc.

Micron Technology, Inc. is an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities - from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

© 2026 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements regarding our industry, our strategic position, our customers, including customer demand, and our financial and operating performance, including our guidance for the third quarter of 2026, as well as our investments in manufacturing and goals for such investments. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results.

GAAP represents U.S. Generally Accepted Accounting Principles.

Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings; adjusted free cash flow; investments in capital expenditures, net; and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share amounts)

	2nd Qtr.	1st Qtr.	2nd Qtr.	Six Months Ended
	February 26, 2026	November 27, 2025	February 27, 2025	February 26, 2026	February 27, 2025
Revenue	$23,860	$13,643	$8,053	$37,503	$16,762
Cost of goods sold	6,105	5,997	5,090	12,102	10,451
Gross margin	17,755	7,646	2,963	25,401	6,311
Research and development	1,250	1,171	898	2,421	1,786
Selling, general, and administrative	344	337	285	681	573
Other operating (income) expense, net	26	2	7	28	5
Operating income	16,135	6,136	1,773	22,271	3,947
Interest income	155	139	108	294	215
Interest expense	(32)	(74)	(112)	(106)	(230)
Other non-operating income (expense), net	(98)	(140)	(11)	(238)	(22)
	16,160	6,061	1,758	22,221	3,910
Income tax (provision) benefit	(2,371)	(829)	(177)	(3,200)	(460)
Equity in net income (loss) of equity method investees	(4)	8	2	4	3
Net income	$13,785	$5,240	$1,583	$19,025	$3,453
Earnings per share
Basic	$12.25	$4.66	$1.42	$16.91	$3.10
Diluted	12.07	4.60	1.41	16.68	3.08
Number of shares used in per share calculations
Basic	1,126	1,125	1,115	1,125	1,113
Diluted	1,142	1,138	1,123	1,140	1,123

CONSOLIDATED BALANCE SHEETS

(In millions)

As of	February 26, 2026	November 27, 2025	August 28, 2025
Assets
Cash and equivalents	$13,908	$9,731	$9,642
Short-term investments	681	587	665
Receivables	17,314	10,184	9,265
Inventories	8,267	8,205	8,355
Other current assets	1,243	958	914
Total current assets	41,413	29,665	28,841
Long-term marketable investments	2,038	1,697	1,629
Property, plant, and equipment	51,408	48,477	46,590
Operating lease right-of-use assets	684	700	736
Intangible assets	468	465	453
Deferred tax assets	680	641	616
Goodwill	1,150	1,150	1,150
Other noncurrent assets	3,668	3,176	2,783
Total assets	$101,509	$85,971	$82,798
Liabilities and equity
Accounts payable and accrued expenses	$10,997	$9,796	$9,649
Current debt	585	569	560
Other current liabilities	2,714	1,695	1,245
Total current liabilities	14,296	12,060	11,454
Long-term debt	9,557	11,187	14,017
Noncurrent operating lease liabilities	656	669	701
Noncurrent unearned government incentives	1,002	1,148	1,018
Other noncurrent liabilities	3,539	2,101	1,443
Total liabilities	29,050	27,165	28,633
Commitments and contingencies
Shareholders’ equity
Common stock	127	127	127
Additional capital	14,092	13,610	13,339
Retained earnings	66,824	53,344	48,583
Treasury stock	(8,502)	(8,152)	(7,852)
Accumulated other comprehensive income (loss)	(82)	(123)	(32)
Total equity	72,459	58,806	54,165
Total liabilities and equity	$101,509	$85,971	$82,798

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

Six Months Ended	February 26, 2026	February 27, 2025
Cash flows from operating activities
Net income	$19,025	$3,453
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense and amortization of intangible assets	4,498	4,109
Stock-based compensation	599	469
Change in operating assets and liabilities:
Receivables	(8,298)	338
Inventories	88	(132)
Accounts payable and accrued expenses	928	(714)
Other current liabilities	1,469	(321)
Other noncurrent liabilities	2,106	195
Other	(101)	(211)
Net cash provided by operating activities	20,314	7,186
Cash flows from investing activities
Expenditures for property, plant, and equipment	(11,776)	(7,261)
Purchases of available-for-sale securities	(1,120)	(816)
Proceeds from government incentives	2,256	1,028
Proceeds from maturities and sales of available-for-sale securities	701	874
Other	(180)	(125)
Net cash used for investing activities	(10,119)	(6,300)
Cash flows from financing activities
Repayments of debt	(4,626)	(2,626)
Repurchases of common stock - repurchase program	(650)	-
Repurchases of common stock - withholdings on employee equity awards	(545)	(252)
Payments of dividends to shareholders	(266)	(261)
Proceeds from issuance of debt	-	2,682
Other	175	131
Net cash used for financing activities	(5,912)	(326)
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash	5	(49)
Net increase in cash, cash equivalents, and restricted cash	4,288	511
Cash, cash equivalents, and restricted cash at beginning of period	9,646	7,052
Cash, cash equivalents, and restricted cash at end of period	$13,934	$7,563

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(In millions, except per share amounts)

	2nd Qtr.	1st Qtr.	2nd Qtr.
	February 26, 2026	November 27, 2025	February 27, 2025
GAAP gross margin	$17,755	$7,646	$2,963
Stock-based compensation	121	107	89
Other	-	-	1
Non-GAAP gross margin	$17,876	$7,753	$3,053
GAAP operating expenses	$1,620	$1,510	$1,190
Stock-based compensation	(176)	(173)	(144)
Other	(23)	(3)	-
Non-GAAP operating expenses	$1,421	$1,334	$1,046
GAAP operating income	$16,135	$6,136	$1,773
Stock-based compensation	297	280	233
Other	23	3	1
Non-GAAP operating income	$16,455	$6,419	$2,007
GAAP net income	$13,785	$5,240	$1,583
Stock-based compensation	297	280	233
Loss on debt prepayments	47	130	4
Other	25	(20)	-
Estimated tax effects of above and other tax adjustments	(133)	(148)	(37)
Non-GAAP net income	$14,021	$5,482	$1,783
GAAP weighted-average common shares outstanding - Diluted	1,142	1,138	1,123
Adjustment for stock-based compensation	7	10	20
Non-GAAP weighted-average common shares outstanding - Diluted	1,149	1,148	1,143
GAAP diluted earnings per share	$12.07	$4.60	$1.41
Effects of the above adjustments	0.13	0.18	0.15
Non-GAAP diluted earnings per share	$12.20	$4.78	$1.56

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued

	2nd Qtr.	1st Qtr.	2nd Qtr.
	February 26, 2026	November 27, 2025	February 27, 2025
GAAP net cash provided by operating activities	$11,903	$8,411	$3,942
Expenditures for property, plant, and equipment	(6,387)	(5,389)	(4,055)
Proceeds from sales of property, plant, and equipment	5	6	7
Proceeds from government incentives	1,378	878	963
Investments in capital expenditures, net	(5,004)	(4,505)	(3,085)
Adjusted free cash flow	$6,899	$3,906	$857

The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, diluted shares, diluted earnings per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items as applicable in analyzing our operating results and understanding trends in our earnings:

Stock-based compensation;
Gains and losses from debt prepayments;
Restructure and asset impairments; and
The estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law. The divergence between our GAAP and non-GAAP income tax (provision) benefit relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately.

Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income.

RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK

FQ3-26	GAAP Outlook	Adjustments			Non-GAAP Outlook
Revenue	$33.5 billion ± $750 million	-			$33.5 billion ± $750 million
Gross margin	Approximately 81%	-		A	Approximately 81%
Operating expenses	Approximately $1.60 billion	$200 million		B	Approximately $1.40 billion
Diluted earnings per share	$18.90 ± $0.40		$0.25	A, B, C	$19.15 ± $0.40

Non-GAAP Adjustments(in millions)
A	Stock-based compensation - cost of goods sold	$141
B	Stock-based compensation - research and development	132
B	Stock-based compensation - sales, general, and administrative	68
C	Tax effects of the above items and other tax adjustments	(52)
		$289

GAAP earnings per share based on approximately 1.14 billion diluted shares and non-GAAP earnings per share based on approximately 1.15 billion diluted shares.

The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.

Contacts
Satya Kumar · Investor Relations · satyakumar@micron.com · (408) 450-6199
Mark Plungy · Media Relations · mplungy@micron.com · (408) 203-2910