Micron Q2 EPS Soars to $12.20, Capex Plans Jump by $5B
Micron posted Q2 adjusted EPS of $12.20 versus $1.56 a year ago on $23.86 billion revenue, up 196%, and a record 74.9% gross margin. Shares fell 6% after the company said fiscal 2026 capex would exceed $25 billion—$5 billion above prior guidance—with capex rising over $10 billion in fiscal 2027.
1. Q2 Earnings Outperform
Micron delivered adjusted EPS of $12.20 for the quarter ended February 26, up from $1.56 a year earlier, on revenue of $23.86 billion versus $8.05 billion last year. DRAM revenue rose 207% to $18.77 billion with bit shipments up mid-single digits and pricing up mid-60%, while NAND revenue grew 169% to $5.0 billion on high-70% pricing gains, driving a record 74.9% gross margin.
2. Q3 Guidance Rises Sharply
For the quarter ending in May, the company forecast revenue of $33.5 billion plus or minus $750 million, well above the $24.29 billion consensus, and adjusted EPS guidance of $19.15 versus a $12.03 estimate. Gross margin is expected to expand to 81%, up 610 basis points sequentially on continued pricing strength.
3. Expanded Capex Outlook
Micron said it will invest more than $25 billion in new manufacturing facilities in fiscal 2026, roughly $5 billion above prior projections, and plans to increase capital spending by over $10 billion year-over-year in fiscal 2027 as it scales global capacity. The elevated capex plan prompted a 6% drop in shares as construction spending is set to outpace equipment investment.