10-QPeriod: Q2 FY2026

MICRON TECHNOLOGY INC Quarterly Report for Q2 Ended Feb 26, 2026

Filed March 19, 2026For Securities:MU

Summary

Micron Technology, Inc. reported exceptionally strong financial results for the quarter and six months ending February 26, 2026. Revenue saw a significant surge, more than doubling year-over-year for both periods, driven by substantial increases in average selling prices and bit shipments for both DRAM and NAND products. This strong revenue performance translated into dramatically improved profitability, with gross margins expanding significantly due to higher selling prices, favorable product mix, and ongoing manufacturing cost reductions. The company's strategic investments in manufacturing capacity and product development, particularly in support of AI-driven demand, appear to be paying off. Significant capital expenditures are underway, supported by government incentives, including substantial CHIPS Act funding. While these investments are substantial, the company's liquidity remains strong, with significant cash and investments on hand, and it expects sufficient resources to meet its obligations. Investors should note the ongoing legal proceedings, particularly patent disputes, and the inherent cyclicality and competitive nature of the semiconductor industry, though current market conditions appear highly favorable for Micron.

Financial Highlights

51 data points
Beta

Revenue

$23.86B

74.4% Gross Margin

Net Income

$13.79B

57.8% Net Margin

EPS (Diluted)

$12.07

Total Assets

$101.51B

Cash & Equivalents

$13.93B

Free Cash Flow

$5.52B

Financial Statements
Beta
Revenue$23.86B
Cost of Revenue$6.11B
Gross Profit$17.75B
R&D Expenses$1.25B
SG&A Expenses$344.00M
Operating Income$16.14B
Net Income$13.79B
EPS (Basic)$12.25
EPS (Diluted)$12.07
Shares Outstanding (Basic)1.13B
Shares Outstanding (Diluted)1.14B

Key Highlights

  • 1Revenue surged by 196% year-over-year in Q2 2026 and 124% for the six-month period, reflecting strong demand and pricing power in both DRAM and NAND markets.
  • 2Gross margin improved dramatically to 74% in Q2 2026 from 37% in Q2 2025, demonstrating enhanced profitability driven by higher average selling prices and cost efficiencies.
  • 3Net income increased substantially, reaching $13.785 billion in Q2 2026, a significant improvement from $1.583 billion in the prior year's quarter.
  • 4The company continues to make substantial capital expenditures, with an estimated over $25 billion planned for property, plant, and equipment in fiscal year 2026, supported by government incentives like CHIPS Act funding.
  • 5Significant debt reduction occurred, with total debt decreasing from $14.577 billion as of August 28, 2025, to $10.142 billion as of February 26, 2026.
  • 6Shareholder returns are being prioritized, with a quarterly dividend declared at $0.15 per share, and continued execution of a $10 billion share repurchase program.
  • 7R&D expenses increased by 39% year-over-year, indicating continued investment in future product and process technologies to maintain competitive advantage.

Frequently Asked Questions

The substantial increase in revenue and profitability is primarily driven by a confluence of strong demand, particularly from AI-driven applications, and constrained industry supply for both DRAM and NAND products. This has led to significant increases in average selling prices (ASPs) and favorable product mix, alongside ongoing efforts in manufacturing cost reductions and process technology improvements.

Micron is undertaking significant capital expenditures, with over $25 billion estimated for fiscal year 2026, to expand manufacturing capacity and develop advanced technologies. This includes substantial investments in leading-edge memory manufacturing sites in the US (Idaho and New York) supported by CHIPS Act funding, as well as expanding capabilities in Asia. These investments are aimed at meeting projected demand growth, particularly for high-bandwidth memory (HBM) and other AI-accelerated applications.

Micron is involved in several ongoing legal proceedings, most notably numerous patent infringement lawsuits from entities like Netlist and YMTC. While the company is unable to predict the outcome, a determination of infringement could lead to significant liabilities or require material changes to products and manufacturing processes. Additionally, ongoing geopolitical tensions and trade regulations, particularly concerning China, pose risks to international operations and market access. The company is also subject to evolving tax laws and regulations globally.

Micron has actively reduced its debt, with total debt decreasing significantly from $14.577 billion in August 2025 to $10.142 billion in February 2026, driven by debt repayments. The company also continues to return capital to shareholders through a declared quarterly dividend of $0.15 per share and by executing its $10 billion share repurchase program.