Micron (MU) Equity Research Report: Fiscal Q2 2026 Results

Micron Technology, Inc. (Nasdaq: MU) reported fiscal Q2 2026 revenue of $23.86 billion. The quarter ended February 26, 2026. [1]

Revenue rose 75% from the prior quarter and 196% from the same quarter a year earlier. [1]

Higher memory prices caused most of the growth from the prior quarter. DRAM average selling prices had a “mid-60% range increase”, while DRAM bit shipments had a “mid-single-digit percentage range increase”. [9]

Micron guided fiscal Q3 2026 revenue to $33.5 billion, plus or minus $750 million. [10]

The main question is how long memory prices stay this high. New industry supply and the terms of new long-term contracts will answer it.

This report is not investment advice. It gives no rating and no price objective.

GAAP gross margin was 74.4% in fiscal Q2 2026. GAAP means U.S. Generally Accepted Accounting Principles. Gross margin is revenue minus cost of goods sold, as a percent of revenue. [2]

Non-GAAP gross margin was 74.9%. Non-GAAP measures remove items such as stock-based compensation. [2]

GAAP diluted EPS was $12.07, and non-GAAP diluted EPS was $12.20. Diluted EPS is net income divided by the diluted share count. [5]

Operating cash flow was $11.90 billion. Adjusted free cash flow was $6.90 billion. [6] [7]

Micron defines adjusted free cash flow as operating cash flow minus net capital expenditures: $11,903M - $5,004M = $6,899M. [7]

Cash, marketable investments, and restricted cash totaled $16.7 billion at quarter end. [11]

On December 17, 2025, Micron guided fiscal Q2 2026 revenue to $18.70 billion, plus or minus $400 million. Guidance is the company's own forecast for the next quarter. [12]

Actual revenue of $23.86 billion was 28% above the guide midpoint. Formula: ($23.86B reported - $18.7B guide midpoint) / $18.7B. [1] [12]

GAAP gross margin of 74.4% compared with a guide of 67.0%, plus or minus 1.0%. [2] [12]

GAAP operating expenses were $1,620M, against a guide of about $1.56 billion, plus or minus $20 million. [4] [12]

GAAP diluted EPS was $12.07, against a guide of $8.19, plus or minus $0.20. [5] [12]

For fiscal Q3 2026, Micron guided revenue of $33.5 billion, plus or minus $750 million. It guided gross margin of about 81%. [10] [13]

The GAAP diluted EPS guide is $18.90, plus or minus $0.40. The non-GAAP guide is $19.15, plus or minus $0.40. [14]

The guide midpoint is 40% above fiscal Q2 2026 revenue. Formula: ($33.5B guide midpoint - $23.86B reported) / $23.86B. [1] [10]

Factory capacity cannot grow much in one quarter. So the guide depends mainly on prices staying high.

Memory revenue equals bits shipped multiplied by the average selling price per bit. A bit is the basic unit of memory capacity.

So revenue can grow in two ways: the company ships more bits, or it gets a higher price per bit.

In fiscal Q2 2026, DRAM revenue rose 74% from the prior quarter. Average selling prices had a “mid-60% range increase”. Bit shipments had a “mid-single-digit percentage range increase”. [9]

In fiscal Q2 2026, NAND revenue rose 82% from the prior quarter. Average selling prices had a “high-70% range increase”. Bit shipments had a “low-single-digit percentage range increase”. [15]

Micron reports these drivers as ranges or approximate values. This report shows them as filed. [9]

DRAM was 79% of revenue in fiscal Q2 2026. Formula: $18,768M DRAM revenue / $23,860M total revenue. [16]

Over one year, DRAM revenue rose 207% and NAND revenue rose 89%. Price was the main driver for both. [17] [18]

Volume also grew over the year: a “mid-40% range increase” in DRAM bits and an “approximate 30% increase” in NAND bits. [17] [18]

Price is the variable that changes fastest. So the durability of these earnings depends mainly on memory prices, which industry supply and demand set.

Cost of goods sold (COGS) is the direct cost to make the products sold. COGS rose 1.8% from the prior quarter. [19]

Revenue rose 74.9% in the same period. The company sold a similar number of bits at a much higher price. [19]

Incremental gross margin was 99%. It is the change in gross margin dollars divided by the change in revenue: ($17,755M - $7,646M) / ($23,860M - $13,643M). [19]

So almost every added dollar of revenue became gross profit. This is the pattern of price-led growth. [19]

COGS fell from 63% of revenue a year earlier to 26%. Revenue growth, not lower cost, caused most of this change. [19]

GAAP operating income was $16,135M, or 68% of revenue. A year earlier it was 22% of revenue. [20]

Operating leverage also works in reverse. Most costs stay when prices fall, so margins would fall fast.

Micron reports four business units. Cloud Memory was the largest in fiscal Q2 2026, with $7.749 billion of revenue. [21]

Gross margin ranged from 68% to 79% across the units. A year earlier, the range was 15% to 55%. [21] [22] [23] [24]

Mobile and Client grew fastest over the year: from $2.236 billion to $7.711 billion, or 3.4 times. [23]

The four units add up to $23.855 billion of the $23.86 billion total. The rest comes from smaller operations that the company reports as All Other. [1] [21] [22] [23] [24]

Capital expenditure (capex) is cash spent on plant and equipment. In the first six months of fiscal 2026, capex rose 62%: $7,261M to $11,776M. [25]

Capex was 2.6x depreciation and amortization over the same period. Formula: $11,776M capex / $4,498M depreciation and amortization. [25] [26]

Capex used 58% of operating cash flow. Formula: $11,776M capex / $20,314M operating cash flow. [25]

In fiscal Q2 2026 alone, net capex was $5,004M and adjusted free cash flow was $6,899M. [7]

New memory capacity takes years to build. So spending now adds industry supply in later years.

In past memory cycles, high prices led producers to add capacity. When that capacity arrived together, prices fell. This report tests whether this cycle follows the same path.

Receivables are amounts that customers owe for products already delivered. [27]

In the first six months of fiscal 2026, receivables rose by $8,298M. That used cash equal to 41% of operating cash flow. Formula: $8,298M receivables increase / $20,314M operating cash flow. [25] [27]

Both figures cover six months, not one quarter. Compare them with six-month revenue, not quarterly revenue. [27]

A receivables increase is normal when sales rise fast. If receivables keep growing faster than revenue, it can be an early sign of weaker demand. [27]

In fiscal Q2 2026, operating cash flow was $11,903M and GAAP net income was $13,785M. [4] [6]

Each value below comes from figures in the cited filings. The formula column lets a reader recompute it.

The next event is the fiscal Q3 2026 results. They test the revenue guide of $33.5 billion, plus or minus $750 million, and the gross margin guide of about 81%. [10] [13]

Operating expenses are guided to $1.60 billion GAAP and $1.40 billion non-GAAP. Fast cost growth would reduce incremental margins. [28]

The board declared a quarterly dividend of $0.15 per share. Compare shareholder returns with capex needs. [29]

This report does not use the share price or valuation multiples. It sets out the earnings questions that drive value.

Multiplying fiscal Q2 2026 by four would overstate normal earnings in a cyclical industry. Normalized earnings, the average across a full price cycle, are a better base. [1] [2]

The scenarios below state what must be true in each case and which facts would show it.

The next report will score this view against these facts.

If bit shipments start to grow faster than prices, growth is volume-led. Incremental margins will then fall below this quarter's level. [9]

If COGS rises much faster than revenue, new capacity is adding cost faster than prices add revenue. [19]

If fiscal Q3 2026 revenue or gross margin lands below the guide, prices were weaker than the company expected. [10] [13]

If receivables keep growing faster than revenue, cash collection is falling behind sales. [27]

If disclosures show the agreements cover a large share of output at high floors, cycle risk is lower than this report assumes.

Price risk is the main risk. Most of the revenue growth came from price, and prices can fall as fast as they rose. [9] [15]

Capacity risk follows from current capex. New supply from all producers can arrive in the same period. [25]

Contract risk cuts both ways. Maximum prices limit upside, and the share of output under contract is not disclosed.

This report does not use the earnings call, prepared remarks, or slides. It uses the SEC copy of the earnings release and the Form 10-Q.

This report does not use share prices, analyst estimates, or news coverage.

Micron filed 22 reports with the SEC in the 12 months to June 9, 2026. Insider Forms 3, 4, 5, and 144 are not included. [30]

Outside holders filed 5 beneficial-ownership schedules (Schedule 13D or 13G) about Micron in the same 12 months. The holders file these, not the company. [31]

The OpenNash research agent built this report from public SEC filings. Data is as of June 9, 2026.

It read the SEC filing index, the earnings releases filed as Form 8-K Exhibit 99.1, and the latest Form 10-Q.

Each figure links to the filing text it came from. Each derived metric shows its formula.

Analysis sentences without a citation number are OpenNash analysis. They add no new facts.

This page was revised on October 26, 2026. The data date did not change.