Micron Reports $23.9B Q2 Sales, Guides $33.5B Q3 Despite Profit-Taking
Micron posted FY26 Q2 revenue of $23.86 billion, non-GAAP EPS of $12.20 and a 74.9% gross margin, then guided Q3 revenue to $33.5 billion with $19.15 EPS and an 81% margin. Shares fell about 5–6.5% in after-hours trading despite record AI-driven demand as investors weigh capital spending against peak memory worries.
1. Record Q2 Earnings and Margins
Micron delivered FY26 Q2 revenue of $23.86 billion, non-GAAP EPS of $12.20 and a 74.9% gross margin, marking record highs across sales, earnings and profitability indicators.
2. Q3 Guidance Tops Expectations
The company guided fiscal third-quarter revenue to about $33.5 billion with roughly $19.15 in earnings per share and an 81% gross margin, well above analysts' average forecast of $24.3 billion.
3. AI Demand Driving Memory Economics
Management highlighted that AI workloads are pushing data-center DRAM and NAND bit TAM above 50% of industry total for calendar 2026, with HBM4 volume shipments underway for Nvidia’s Vera Rubin platform and data-center NAND revenue more than doubling sequentially.
4. Stock Reaction and Capex Hangover Concerns
Despite the stellar report, shares fell 5% in extended trading and slid 6.5% the following morning as investors weighed peak memory concerns and potential capital expenditure hangovers against the strong AI-driven outlook.