Micron Raises FY2026 CapEx to $25B Despite 196% Revenue Surge
Micron Technology reported Q2 FY2026 non-GAAP EPS of $12.20 on 196% year-over-year revenue growth and gross margins near 75%. Shares fell about 4.4% in after-hours trading after management raised FY2026 capital expenditures above $25 billion and macro headwinds from rising oil prices and Fed tightening weighed on sentiment.
1. Q2 FY26 Earnings Highlights
Micron posted non-GAAP EPS of $12.20 for Q2 FY2026, fueled by a 196% year-over-year revenue jump and gross margins approaching 75%, reflecting strong pricing power in memory products amid AI-driven demand.
2. After-Hours Stock Reaction
Shares declined about 4.4% in after-hours trading as management raised full-year capital expenditures to over $25 billion to expand capacity, while rising oil prices and Fed tightening pressured market sentiment.
3. Outlook and Key Metrics to Monitor
Investors will track consolidated gross margin sustainability, data center revenue growth rates and forward guidance for signs of cycle strength. Key upcoming events include hyperscaler earnings calls in April, Q3 FY26 earnings in late June and competitor capacity updates in the second half of 2026.