Micron Technology Reports $12.20 EPS with 196% Revenue Surge, $25B CapEx Hike
Micron Technology posted Q2 FY26 non-GAAP EPS of $12.20, a surge after revenue jumped 196% YoY and gross margins hit near 75%. Management raised FY26 capital expenditures to over $25 billion, prompting a 4.4% stock drop in after-hours trading.
1. Q2 FY26 Earnings Beat
Micron Technology delivered non-GAAP EPS of $12.20 for Q2 FY26, significantly topping consensus expectations. Revenue climbed 196% year-over-year, driven by robust demand for AI-optimized memory products and expanding data center workloads.
2. CapEx Increase Spurs After-Hours Drop
Management announced FY26 capital spending exceeding $25 billion to scale wafer fabrication capacity. The aggressive CapEx plan overshadowed the earnings beat, triggering a 4.4% decline in after-hours trading as investors weighed near-term cash demands.
3. Key Risk Metrics to Monitor
Investors should watch consolidated gross margin percentage relative to the 70–75% target, data center revenue growth trends and any sequential shifts in forward revenue guidance. Hyperscaler spending updates and competitor capacity expansions will be critical for validating the AI memory upcycle thesis.