Micron Technology has reported the kind of quarter that makes a spreadsheet look like a typo. Micron put revenue for its fiscal second quarter of 2026 at $23.86 billion, against $13.64 billion in the quarter immediately before it and $8.05 billion in the same quarter a year earlier. The period ended February 26, 2026.
Nearly tripling revenue in a year is unusual for any company. Doing it while GAAP gross margin climbs from 36.8 percent to 74.4 percent is stranger still, because it means the extra revenue arrived without a matching pile of extra cost. GAAP net income landed at $13.79 billion, or $12.07 per diluted share, and operating cash flow reached $11.90 billion against $3.94 billion in the same quarter last year.
The gains run through all four segments Micron reports. Cloud Memory revenue reached $7.75 billion at a 74 percent gross margin, Mobile and Client $7.71 billion, Core Data Center $5.69 billion, and Automotive and Embedded $2.71 billion. Gross margins improved in every one of them against both the prior quarter and the year-ago quarter.
"Micron set new records across revenue, gross margin, EPS, and free cash flow in fiscal Q2, driven by a strong demand environment, tight industry supply, and our strong execution, and we expect significant records again in fiscal Q3," said Sanjay Mehrotra, chairman, president and chief executive.
One acronym never appears at all. HBM, high bandwidth memory, said letter by letter, is the stacked memory that sits right beside an AI accelerator so data has a shorter walk to the processor. Think of it as moving the fridge next to the sofa instead of leaving it in the kitchen. Those three letters do not occur anywhere in Micron's release, and they did not occur in the previous quarter's release either, so this is a long-standing habit rather than a change of practice.
Business unit names are as granular as the disclosure gets. Micron gives revenue, gross margin and operating margin for the four units and no split below that, which leaves the product-level picture outside the public record.
Guidance is where the company plants its flag. Micron projects third-quarter revenue of $33.5 billion, plus or minus $750 million, gross margin of approximately 81 percent, and non-GAAP diluted earnings of $19.15 per share, plus or minus 40 cents. Those are the company's own projections rather than results, and a gross margin near 81 percent would be a further step up from the 74.9 percent it just recorded on a non-GAAP basis.
Mehrotra tied the payout to the same demand picture. "In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand." The board declared a quarterly dividend of $0.15 per share, payable on April 15, 2026 to holders of record as of March 30, 2026, which Micron describes as a 30 percent increase.
Capital spending is climbing alongside the revenue. Investments in capital expenditures, net, came to $5.0 billion for the quarter, adjusted free cash flow was $6.9 billion, and Micron finished with $16.7 billion in cash, marketable investments and restricted cash.
None of this settles the question every buyer of memory is actually asking, which is how long tight supply holds. Micron's release names the condition in its chief executive's own words and stops there.
Leave a Reply