Micron FQ2'26 earnings — high guidance & $30B+ FY26 capex confirmed
Key Questions
What were Micron's key financial results for FQ2'26?
Micron reported FQ2'26 revenue of $23.86-24B, up 196-300% YoY and 75% QoQ, with DRAM/NAND ASP increases of 65-95%. Gross margin reached 74% and operating margin 48%. This beat expectations amid strong AI-driven demand.
What is Micron's guidance for Q3 and FY26?
Q3 guidance is $33.5-33.63B revenue with 81% gross margin and EPS over $19.15, crushing consensus. FY26 capex is confirmed above $30B, with plans for $10-25B+ in FY27.
Why did Micron's stock experience post-earnings volatility?
The stock dipped to $366 due to sell-the-news reactions and efficiency fears, despite strong results. It rebounded on AI demand signals, reflecting ongoing volatility.
How is AI demand impacting Micron's business?
AI memory themes are driving gains, with high demand for HBM and high-end DRAM entering a structural growth cycle. Articles highlight 'RAMageddon' with tenfold DRAM price surges and shortages by 2026.
What debt-related actions did Micron announce?
Micron completed a $5.4B debt buyback and cash tender offers for senior notes, signaling deleveraging and a shift in the semiconductor cycle.
Did Micron adjust its dividend?
Yes, Micron hiked its dividend following the strong earnings report.
How does Micron's capex plan support AI growth?
Capex over $30B in FY26 and $10-25B+ in FY27 funds AI infrastructure, including NAND expansion for AI storage through FY27.
What are the market reactions to Micron's earnings?
Despite record earnings, investor doubts persist due to surging investments and competition, creating a market paradox with stock pullbacks amid AI optimism.
FQ2 beat ($23.86-24B rev +196-300%YoY/+75%QoQ, DRAM/NAND ASP +65-95%, 74% GM/48% op margin); Q3 $33.5-33.63B/81% GM EPS $19.15+ crushes cons; capex >$30B FY26 +$10-25B+ FY27; div hike; volatility persists with dips to $366 on sell-the-news/efficiency fears, rebounding on AI signals/Zacks #1.