Micron Q2 2026 earnings: record revenue and cash flow as AI memory demand surges
Micron's fiscal Q2 2026 revenue nearly tripled year-over-year on surging AI-driven memory demand, with record cash flow and margins and a sharply higher spending plan.
| Q2 2026 | Reported |
|---|---|
| EPS | $12.07 |
| Revenue | $23.86B |
Figures as reported by the company to the SEC for the quarter ended February 26, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue climbed to $23.86 billion, nearly triple what Micron reported in the same quarter last year and about 75% higher than the prior quarter, as memory chip prices and demand both surged.
- CEO Sanjay Mehrotra said the company set new records across revenue, gross margin, earnings per share, and free cash flow, crediting strong demand, a tight supply environment, and execution on the company’s product roadmap.
- Cash generated from operations jumped to $11.90 billion for the quarter, up from $8.41 billion the prior quarter and $3.94 billion a year earlier — a sign the current memory upcycle is translating demand into real cash, not just paper profit.
- The very high margins and return-on-equity figures shown for the trailing year reflect a memory market where prices have risen sharply while supply stays tight — a favorable but historically cyclical condition for chipmakers like Micron.
- Growth is being driven heavily by AI-related demand: Micron said it began shipping its newest high-bandwidth memory chips (HBM4, used in AI data-center processors) and that its entire calendar-2026 HBM production is already sold under agreed pricing and volume contracts.
- Management raised its full fiscal-2026 capital spending plan to more than $25 billion, up from an earlier $20 billion outlook, to build additional manufacturing capacity in response to demand.
- For the current quarter, Micron guided to record revenue of about $33.5 billion (plus or minus $750 million) with gross margin expected near 81%, implying continued sequential growth if achieved.
- Management said it expects supply to remain tight for both DRAM and NAND memory chips beyond calendar 2026, citing limited cleanroom space and long lead times to build new manufacturing capacity.
Q2 2026 in context
| Metric | Feb 2026 | Feb 2025 | Change |
|---|---|---|---|
| Revenue | $23.9B | $8.1B | +196.3% |
| Net income | $13.8B | $1.6B | +770.8% |
| Free cash flow | $5.5B | -$113M | +4981.4% |
| Diluted EPS | $12.07 | $1.41 | +756.0% |
| Gross margin | 74.4% | 36.8% | +37.6 pts |
| Operating margin | 67.6% | 22.0% | +45.6 pts |
| Net margin | 57.8% | 19.7% | +38.1 pts |
Figures for the quarter ended Feb 2026 and the quarter ended Feb 2025, as reported to the SEC.
Each company's quarter ending in calendar Q1 '26, as reported to the SEC. A peer that reported no revenue figure for that quarter is left out.
How the stock took it
Micron Technology Inc closed at $461.73 on Mar 18, 2026, the last session before the report, and at $422.90 on Mar 20, 2026, the first session after it — -8.4% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| Dec 18, 2025 | $225.52 | $265.92 | +17.9% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call